Lava zone insurance for zones 1 and 2 have fewer providers but are available for purchasing and refinancing Hawaii homes in lava zones 1 and 2. Quick lesson: lava zone 1 is where lava erupts from the ground, and, lava zone 2 in the area adjacent to, or downslope from, zone 1, where lava flows. Insurers take the risk factors when offering insurance coverage and this may be the most important factor to consider when buying a home.

For example, HPIA insures lava zone 2 upto $450,000 (previously $350,000). If you are buying a home in lava zone 2 for $600,000 your coverage is limited to $450,000. A mortgage lender requires 100% replacement value, so this must fall within the $450,000 limit. The insurance agent will calculate RCE (replacement cost estimate) so both you and the lender confirm your home is covered for all levels of mishap. For lava zone 2 insurance quotes in East Hawaii contact HPIA.

In West Hawaii, Ocean View and Captain Cook, lava zone insurance coverage limits are higher, upto $1,000,000. Since it’s been 50 years since lava on the Western slopes have caused any damage, the insurers evaluate this region differently than Pahoa and Kapoho. Again, if you are buying a primary home for $1,500,000 you are capped at $1,000,000 in replacement coverage, so get a quote when you are home shopping and seeking lava zone 2 financing. If you are buying a second home or investment, coverage is less. For lava zone 2 insurance quotes in West Hawaii contact Robin Munitake at Aloha Insurance robin@alohainsurance.com (808) 334-4083

Our company provides lava zone 2 financing on purchases and refinances in lava zone 2, and VA IRRLs in lava zone 1. Lava zone 2 Hawaii is in reach. Here’s some additional information about buying and living in lava zone 2 Hawaii: www.lavazone2mortgage.com

Big Island Mortgages by Doug Mallardi
(808) 333-4341 doug@bigislandmortgages.com
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(updated 2/8/23)