• hpia@marsh.com
  • (808) 585-3524

2020 Rate Change

Customer Q&A

Why have my rates increased so much?
HPIA sustained significant losses while helping homeowners in lava zones 1 and 2 recover from lava damage last year. HPIA was forced to increase rates to cover its operating expenses including premium costs to reinsurance companies. The rate change affects homeowners who choose to live in lava zones 1 and 2, areas at the highest risk for future lava-related losses.

I am in lava zone 3–9. Are my rates going to go up?
The rate increase for 2020 affects homeowners in lava zones 1 and 2 only.

Why are homeowners in lava zones 1 and 2 the only ones affected?
The tens of millions in claims paid by HPIA as a result of the 2018 lava flow were isolated to lava zones 1 and 2, and damage to homes in these zones are the reason HPIA’s costs of doing business have increased. Homes in lava zones 1 and 2 are also the most likely to suffer future lava-related losses.

I can’t afford to pay my new premium. Can you reduce my rate?
We understand this is a significant increase and HPIA did not come to this decision lightly. The increased rates will allow HPIA to continue to offer insurance to homeowners choosing to live in lava zones 1 and 2, who are turned away from other insurance companies and seeking coverage from HPIA as a last resort. Homes located in lava zones 1 and 2 face the greatest risk of future lava-related losses and HPIA is charging premiums based on that risk.

Can you offer a payment plan?
Unfortunately, we do not offer payment plans at this time.

What will happen if I don’t pay my renewal policy premium?
If the policy premium is not received by the due date, this will result in a loss of coverage for your home. Your policy will lapse as of the current expiration date and you will not be covered for any damages to your home after the expiration date.

Can I get insurance from somewhere else?
You may speak with your insurance agent to see if there are other options available. HPIA is designed to provide basic coverage for homeowners who live in areas where traditional insurance companies are unwilling to offer coverage. Homeowners with HPIA coverage have already received at least two declinations for coverage from licensed insurers in the voluntary market.

Will my premium go down in the future?
Unfortunately, HPIA does not foresee a rate reduction in the future. The premium increase is to cover the cost of providing insurance to homeowners who choose to live in areas with the greatest risk of future lava-related events.