Hawaii is home to breathtaking beaches, lush landscapes, and a laid-back vibe that draws people from around the world. For renters living in paradise, securing renters insurance is an important step in safeguarding personal belongings and gaining peace of mind. However, renters insurance policies aren’t all-encompassing, and it’s crucial to understand the limitations—especially what’s generally excluded. Below, we explore some of the most common policy exclusions in renters insurance in hawaii.
Natural Disasters and Renters Insurance
Living in Hawaii means being surrounded by nature’s wonders, but also its potential dangers. Natural events like hurricanes, tsunamis, and floods are realities for residents, and they can lead to significant property loss or damage. However, standard renters insurance often excludes coverage for damages caused by these natural disasters. According to the Federal Emergency Management Agency (FEMA), floods alone caused over $50 billion in damages in the last decade across the U.S., including Hawaii. To protect yourself, you may need to purchase additional coverage, such as a flood insurance policy, to cover damages specific to such events.
Earthquake Damage
Hawaii ranks as one of the most seismically active states in the U.S., experiencing hundreds of small earthquakes every year, according to the United States Geological Survey (USGS). While most are minor, larger tremors can cause significant property damage. Unfortunately, earthquake damage is a common exclusion in renters insurance policies in Hawaii. If you’re concerned about this threat, consider supplemental earthquake coverage.
High-Value Items
Another common exclusion—or limitation—within renters insurance policies involves high-value items like fine jewelry, rare collectibles, or expensive electronics. These items may be covered up to a certain amount, but standard policies often cap the limit at a few thousand dollars for such belongings. For instance, if you own a $10,000 engagement ring and policies typically only cover $1,500 for jewelry, you could face out-of-pocket expenses should something happen. A scheduled personal property endorsement is an add-on that can bridge the gap.
Pest-Related Damages
Hawaii’s lush environment makes it a haven for wildlife, insects, and pests. It’s not uncommon for renters to deal with termite infestations or other pest-related problems. What many may not realize is that renters insurance usually excludes coverage for damages caused by pests. For example, if termites damage your wooden furniture or bed frame, you’ll likely need to cover those costs yourself. Regular pest control services are a good preventative measure to mitigate these risks.
Acts of Neglect
Renters insurance typically requires reasonable precautions to be taken to protect your belongings. If the damage results from neglect or improper care, insurers are unlikely to cover it. For example, failing to repair a leaky faucet that results in severe water damage may be deemed as negligence. Always maintain your rental property and report issues to your landlord promptly to avoid costly consequences.
Intentional Acts
Lastly, damages caused intentionally, whether by the renter or guests, are universally excluded from renters insurance coverage. This means that if someone intentionally damages property during a dispute, the insurance provider will not pay for the repairs or replacements.
Understanding Policy Exclusions
Knowing what isn’t covered under your renters insurance is as important as knowing what is. By identifying gaps in coverage, renters in Hawaii can take proactive steps—such as adding supplemental policies or endorsements—to ensure complete protection for their belongings and financial well-being. Always read your policy’s fine print and speak with your insurance representative for clarity on coverage.
