KAILUA-KONA, Hawaiʻi – August 2026 — For many years, homebuyers focused primarily on purchase price, mortgage rates, inspections, and appraisals when evaluating a property. Today, another factor is rapidly becoming just as important: insurance.
Across Hawaiʻi, rising insurance premiums and changing coverage availability are prompting buyers to investigate a property's insurability before making an offer. What was once considered a final step before closing has become an important part of the earliest stages of the home-buying process, particularly for older homes, condominiums, and properties located in areas with greater weather exposure.
The shift reflects broader changes in Hawaiʻi's housing market. According to the University of Hawaiʻi Economic Research Organization (UHERO), insurance has become one of the fastest-growing components of housing costs, while high insurance premiums and increasing homeowners association fees are reducing affordability—particularly in the condominium market. The report also notes that aggregate property insurance premiums collected statewide increased 13.4% in 2024, the largest annual increase in at least a decade.
"Insurance is no longer a detail addressed near the end of a transaction," said Dan Polimino, Broker of The Hawaii Team. "It is becoming one of the first questions informed buyers ask, particularly when evaluating older homes, condominiums, and properties in areas with greater weather exposure."
As buyers become more informed, many are requesting insurance estimates before removing contingencies to better understand the true cost of ownership. Beyond the purchase price, insurance premiums, deductibles, replacement costs, and policy availability can significantly influence long-term affordability.
Construction type and property location are also becoming increasingly important considerations. Homes built with updated roofing systems, modern electrical and plumbing infrastructure, and newer construction standards may present different insurance opportunities than older properties requiring additional underwriting review. Likewise, factors such as elevation, coastal exposure, wildfire risk, and other environmental conditions can influence coverage options and premium costs.
For condominium buyers, insurance due diligence has become especially important.
Unlike single-family homes, condominium ownership involves both an individual insurance policy and a master insurance policy maintained by the association. Buyers are encouraged to review what the master policy covers, understand reserve funding, evaluate the building's financial health, and determine whether recent or future special assessments may affect the overall cost of ownership.
The Hawaiʻi Department of Commerce and Consumer Affairs notes that condominium associations are currently navigating a "hard" insurance market, where fewer insurers are offering master policies, underwriting standards have become more restrictive, and rising reinsurance costs have contributed to significantly higher premiums. Deferred maintenance and aging building systems may also increase insurance costs or result in additional assessments for owners.
"As buyers evaluate condominiums today, they're looking beyond finishes and amenities," Polimino explained. "They're asking about the association's insurance coverage, reserves, maintenance history, and long-term financial stability because those factors directly affect the cost of ownership."
The evolving insurance landscape also presents an opportunity for sellers to better prepare their homes before listing.
Providing documentation for roof replacements, updated electrical and plumbing systems, hurricane mitigation improvements, and recent property upgrades can help answer buyer questions early in the transaction. Being proactive with insurance-related information may reduce uncertainty during escrow and strengthen buyer confidence.
The growing importance of insurance has also drawn attention from state leaders. Hawaiʻi has enacted measures aimed at stabilizing the property insurance market by expanding coverage options and providing additional support for condominium associations facing rising insurance costs, underscoring the increasingly important role insurance plays in the state's housing market.
"Our responsibility goes beyond helping clients buy or sell a home," Polimino added. "We want them to understand every aspect of ownership. Today, reviewing insurance should be just as routine as reviewing financing, inspections, and disclosures. Buyers who understand those costs upfront are in a much stronger position to make confident decisions."
As Hawaiʻi Island's real estate market continues to evolve, insurance has become an essential part of the conversation for both buyers and sellers. While demand for quality homes remains strong, successful transactions increasingly depend on understanding the complete financial picture—not only the purchase price, but the long-term costs of owning the property.
For more information about current market trends or to explore available listings, please contact The Hawaii Team at::[email protected] | (808) 913-0899
About The Hawaii Team
Led by Dan Polimino, The Hawaii Team is a boutique luxury real estate advisory serving the
West Side of Hawaiʻi Island. With 19 years of experience and 1,300+ transactions, we specialize
in disciplined pricing, strategic marketing, and concierge-level execution.

The Hawaii Team
Daniel Polimino # RB-22894 REALTOR® Broker
808-913-0899
KW Big Island # RB-23793
73-5619 Kauhola St # 208 Kailua Kona, HI 96740
808-930-5900

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