Will the latest Kona low storms further strain Hawaii’s home insurance market, resulting in greater gaps in coverage?

The Insurance Fairness Project released a report Thursday detailing how costly climate disasters will shift Hawaii’s risk profile, resulting in even higher property insurance rates. This, in turn, will worsen Hawaii’s insurance crisis, leaving homeowners to pay the price.

Hundreds of thousands of properties in Hawaii do not currently qualify for flood insurance, the report noted, and many remain uninsured or underinsured despite these growing environmental risks.

Hawaii farmers, for instance, do not qualify for federal crop insurance since it is only available to large-scale, single-crop farms more commonly found on the U.S. continent.

“Hawaii is one of the states on the frontlines of the climate crisis, and the insurance system simply isn’t built to keep up,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project, described as a national information hub. “Families are being priced out of protection, farmers are left without viable options, and entire communities are one disaster away from financial ruin.”

Policymakers have a narrowing window to close these dangerous coverage gaps, he added, and to ensure families are not shouldering the entire bill.

These extreme weather events are becoming more frequent and more costly, the report noted, while insurance markets are struggling to keep pace, leaving Hawaii residents vulnerable to financial ruin when disaster strikes.

The Hawaii Insurance Division, however, said the Insurance Fairness Project report is an advocacy analysis, and that some of its statements are not based on data that it collected or verified.

“Like every other state in the U.S., Hawaii is experiencing increased pressure on its insurance market driven by a combination of factors,” said the division in a written statement, “including catastrophe risk, reinsurance costs, inflation, and property-specific vulnerabilities.

The division added that some of the specific claims in the report should be “viewed with caution.”

Coverage gaps

The cost of property insurance in Hawaii has only gotten more expensive, the report said, in the aftermath of recent, extreme weather-related events.

While the report said some home insurance providers hiked average premiums by more than 50% last year, following the Maui wildfires of August 2023, the Hawaii Insurance Division said that may reflect individual cases or limited datasets, but not necessarily statewide averages.

“Premium changes vary significantly by insurer, location and risk profile,” said the division.

Insurance claims for the recent Kona low storms, meanwhile, are likely still being worked out, for those who were covered.

The back-to-back storms which occurred over two weekends in March resulted in extensive damage, flooding hundreds of properties, including homes, schools, farms and businesses.

The torrential rains resulted in mudslides, landslides and sinkholes, damaging Hawaii roadways — and the closure of Kula Hospital on Maui.

Hawaii’s coverage gaps became clear in the aftermath of the storms, as most homeowners and renters learned their standard insurance policies were not accompanied by separate flood insurance to cover claims for floodwaters from the ground up.

According to the report, only 4.2% of properties statewide actually carry flood insurance. Some property owners do not have flood insurance because it is too expensive or because they were denied.

Hawaii farmers, meanwhile, are unable to find insurance policies that match their needs, the report said. Federal crop insurance is only available to large-scale, single-crop farms, but most farms in the Hawaiian isles grow diverse crops, and are a median size of 5 acres due to limited land availability.

The options are also prohibitively expensive, the report said. A small, family-run farm facing $2,000 a year in insurance premiums likely will opt to go without it.

“This extreme gap in coverage is especially concerning given how quickly flooding can occur in the islands,” said the report, “where intense rainfall can overwhelm landscapes within minutes.”

Critical
infrastructure

At the same time, the report said, the recent storms “exposed critical vulnerabilities” in infrastructure across the state.

“Floodwaters overwhelmed drainage systems not designed to carry this amount of water, inundating neighborhoods and damaging essential infrastructure,” said the report. “Roads were washed out, and water systems were compromised throughout multiple zip codes. Residents on Oahu were advised to boil their tap water before use and stockpile drinking water for up to two weeks due to contamination risks.”

Additionally, the report mentioned that Wahiawa Dam on Oahu, a 120-year-old dam owned by Dole Food Co., had accumulated fines since 2009 for not complying with safety standards.

City officials issued an evacuation notice for Waialua and Haleiwa residents during the second Kona low storm, warning that Wahiawa Dam failure was in progress or expected, which put communities on edge.

The dam ultimately did not fail during the Kona low storms, but the state is now moving to acquire it to make necessary upgrades.

These critical infrastructure weaknesses, the report said, make extreme weather disasters more costly.

“These risks to public health and safety highlight the need to update and maintain private and public infrastructure,” the report said. “The aftermath also surfaced gaps in the government’s ability to hold private companies and landowners accountable for risky or negligent behavior that creates or worsens risks.”

State leaders have responded, the group noted, but are not keeping pace with the rapidly escalating problem.

In 2025, Gov. Josh Green convened a task force to develop strategies for stabilizing the insurance market.

That year, the state Legislature passed a Senate bill that became Act 296, which reactivated the Hawaii Hurricane Relief Fund to provide insurance coverage in scenarios where the private market fails to do so.

As of April 3, the Hawaii Hurricane Relief Fund has issued 97 policies totaling about $2.7 million to condominium properties seeking hurricane property coverage, the state Insurance Division said.

Several legislative bills were introduced this session related to property insurance.

Among them are Senate Bill 2960, which establishes a minimum time frame of 24 months following loss for policyholders to submit documentation for full replacement costs of their homes. It also would allow extensions for good cause.

Senate Bill 1166 seeks to recover climate-related losses from a “responsible party” such as major oil and gas corporations.

The Hawaii Property Insurance Association, the Hawaii Hurricane Relief Fund, or any private insurer would be allowed to bring civil action claims against responsible parties for losses resulting from climate change related disasters.

In December, the Hawaii Appleseed Center also released a report on how escalating climate disasters are reshaping the insurance market, and how they would impact working families, kupuna, and fixed-income households.

That report also warned that without swift action, escalating climate disasters would leave Hawaii homes uninsured.

The Hawaii Insurance Division said it would “continue to monitor market conditions, review rate filings, assist consumers, and work with policymakers and stakeholders to improve access to coverage while maintaining a stable and competitive insurance market.”

HONOLULU (HawaiiNewsNow) – Feet away from the line of blue umbrellas providing shade for beachgoers at Fort DeRussy Beach Park, there is often a row of tents sheltering homeless people.

Unlike other homeless clusters throughout Waikiki and the rest of Oahu that typically sit on the outskirts of public spaces, the encampment sits right on the beach for all to clearly see.

“I didn’t expect it, I thought it would be a nicer area, cleaner, then you get people like that that affect the area, make it look trashy,” visitor Aiden Moffett said.

Some trash and abandoned belongings appeared to have been left behind this week, but there were hardly any tents after Department of Land and Natural Resources personnel cleared them out between April 1 and 2.

The effort was a part of a monthly, joint operation to remove homeless encampments at Fort DeRussy, as well as the Ala Wai, Hilton Lagoon, and Waikiki Beach.

“Fortunately, there’s not any around here anymore, but I do hate to see it anywhere,” said visitor Patricia Orr.

Several visitors have been complaining about the camp on the military reservation, with some posting about it on social media.

A few guests at the Hale Koa Hotel also mentioned the tents in reviews on TripAdvisor.

One profile from Santa Clarita, California titled their April 16 post, “Need to (get) rid of ghetto tents on beaches,” adding, “This year for the first time, homeless tents line the beach. Imagine renting the highest rate room and stepping out on the lanai to a view of a beach gone ghetto. Shame on you, Hawaii. Your biggest revenues come from tourism. Literally thousands of other vacation destinations exist.”

Other beachgoers were not bothered.

“If it’s not a bunch of trash all around, then I think it’s fine, and if they’re staying in their tents or not causing a mess, then it’s good,” visitor Landen Maley shared.

The U.S. Army Garrison Hawaii told Hawaii News Now:

“U.S. Army Garrison Hawaii is aware of the concerns regarding the encampment located on the beach near the Hale Koa Hotel and understands the impact this situation has on the community. We are working closely with our City and County of Honolulu, State of Hawaii and other local partners to help ensure the area remains safe, orderly, and accessible for all who use it.

Adding to the complexity of this issue, multiple agencies share responsibility for this area. The beach zone—from the beach walk concrete to the high‑water line—is under the jurisdiction of the State of Hawaii Department of Land and Natural Resources, which is responsible for enforcement and any required clearance actions in that space. The area extending from the beach walk concrete to Kalia Road falls under the jurisdiction of U.S. Army Garrison Hawaii.

As part of a coordinated team effort, U.S. Army Garrison Hawaii will continue to support our partners in their response efforts, maintain safety for all users, and assist agencies and private organizations with the expertise to provide care and services to those who do not have a home. Together, we remain committed to addressing this issue in a respectful manner that considers the needs of all affected—those experiencing homelessness, visitors, beachgoers, and the broader community.”

DLNR responded to our request for comment with the following:

“The most recent DLNR cleanup of the Ala Wai, Hilton Lagoon, Ft. Derusy, and Waikiki Beach was April 1-2. Cleanups of this area occur about once a month during the late night to early morning hours and are typically joint operations with DLNR, City and HDOT working together to address multiple jurisdictions jointly. HPD and DOCARE both conduct patrols to support enforcement efforts between cleanups.

The military provides support by having Hale Koa’s security standing by to ensure no personal property goes on federal property. US Army Garrison Hawaiʻi has reached out to DLNR staff to see how the Army can assist further and are looking into options.”

City officials provided the following statement:

“This continues to be a coordinated effort between the City, the State, and our nonprofit partners to address ongoing concerns in the area.

We are working closely with State and DLNR partners to facilitate additional joint operations that will allow us to move forward more effectively.

Our focus remains on balancing compassionate outreach with the need to address illegal activity and restore the area for the broader community.”

A reader booking a Hawaii flight just found and wrote to us about one fee that nearly tripled this week, from $35 to $100. But the bigger story is what else readers are finding at booking and onboard, from fees to meals, as Hawaiian’s old terms get replaced with ones the new airline can actually afford to keep.

This $35 fee just became $100.

Hawaiian’s longtime interisland cabin pet fee was $35, a price well below the rest of the airline industry. The cabin pet fee is now $100, whether flying interisland or between Hawaii and the mainland. Checked pets on interisland flights are listed at $60, so even that option now costs more than the old cabin fee many residents and repeat visitors knew. Moving from $35 to $100 is a 186% increase, and a quick interisland roundtrip with a pet now costs $130 more.

The new fee is closer to what mainland carriers already charge for pets in the cabin, where $100 to $150 has long been common. That doesn’t make the increase easier for longtime Hawaii travelers who booked expecting the old Hawaiian price, which was unusually low when measured against the larger airline system Alaska brought with it.

The reader who found out at booking.

One reader put it plainly after finding the new price while trying to make a pet reservation. The frustration was not just the dollar amount. It was the timing, the lack of warning, and another familiar Hawaiian practice that pulled the rug out from under travelers still assuming the old rules applied.

“Alaska is not better in another way. Today I discovered that taking a pet on an inter island flight is now $100 as opposed to $35 with Hawaiian. Had I made my pet reservation just 2 days ago I would have saved $65 per way. Outrageous! This is not in the spirit of Aloha.”

For a traveler making a short island hop, the pet fee can now approach or exceed the passenger fare itself, depending on route, timing, and when the ticket was booked.

The meal that still isn’t.

The pet fee is one data point, and meals are another. Readers are describing gaps between what they expected from Hawaiian and what they received on flights, part of a longer pattern of small Hawaiian touches changing, being repriced, reduced, or still unclear during this week’s transition.

One reader booked a mainland flight under the Hawaiian name and reported the meal didn’t match what was promised.

“I just flew on a ‘Hawaiian’ flight from Hawaii to the mainland and having doubts about service changes, I checked 2 weeks, and then 72 hours in advance to pre-order a meal in premier class seating. It stated meals for that flight were complimentary but we got a bag of snack mix only. It is disappointing to experience these inconsistent changes among the Alaska takeover.”

Comments we have received at Beat of Hawaii say that complimentary meals are still being phased out. Readers are reporting, and employee accounts are pointing in the same direction. Food that once defined Hawaiian’s mainland and long-haul service is being reduced, reworked, or shifted. Alaska sent us a different message this week when we wrote about Hawaiian Air meal service:

“There are no changes to our complimentary meal service in our main cabins. During our PSS transition, several dual‑brand content updates were made to our webpages, and the link referenced in your post was unintentionally directing to an Alaska Airlines pre‑order page. We’re working to correct that now.

Two days later, however, there’s no sign on Hawaiian’s own food page of what complimentary meals in economy still exist. The page only refers to business class meals.

A reader says what BOH has been reporting.

One longtime BOH reader put it in harsher terms than we would have chosen. The loss did not begin on one date. It came through smaller moves, thinner service, and a pricing model that kept asking the question of whether the old Hawaiian Air experience could survive as a standalone airline model.

“I am having trouble understanding why people are mourning the loss of Hawaiian Airlines. It died years ago making incremental changes to their image and service. Flying Hawaiian airlines in their heyday was a special experience. But, like many other things in life right now, there’s little left of what we once knew.”

The old Hawaiian experience had been fading long before Alaska took control, even while many travelers still hoped the brand, the food, the service style, and the Hawaii-specific aspects they still remember fondly would remain intact. Alaska did not create the problems Hawaii travelers are feeling, but the acquisition is forcing the pricing and service reset into public view in a big way. The $35 pet fee moving to $100 is just another example.

The longhaul issues also come into focus.

One reader just described a much 10,000 mile trip on Hawaiian this week, where the food issue became harder to understand because of the route length and total travel time.

“I just got off a 9hr flight from Sydney Australia. We had a light meal on that flight…. a 3hr stop over and now am on a 9-10hr flight to JFK and now I have to purchase food and drinks. Absolutely pathetic for such a long flight.”

The undoubtedly soon to be resolved pattern has three points: an interisland fee increase, a premier-class meal gap, and a long-haul food complaint. Travelers are bringing old Hawaiian expectations into a new system where fees, meals, and what’s included are being reset.

We’ve experienced this ourselves in countless mileage upgrades from economy to business/first class on Hawaiian flights. These were offered at pricing too low to be sustainable, and compared with the rest of the industry. Those cheap mileage upgrades are now gone.

That kind of value built loyalty. But it also created an obvious question for any acquiring airline. Cheap fees, too generous upgrades, included meals, and other unique offerings helped Hawaiian feel different. They also left Hawaiian in terrible financial straits. And they leave Alaska with plenty of places where the larger airline can raise, remove, or reprice things.

Why the old Hawaiian couldn’t last.

For longtime Hawaiian travelers, this part is still uncomfortable. Many of the things people loved were real, but they were priced in a way that was hard to defend commercially once Hawaiian was no longer standing by itself. A bigger carrier absorbs a smaller one and necessarily looks for alignment. The cheaper system moves toward the more expensive one, and not the other way around.

Hawaiian’s “Aloha discount” is what the merger ended. The brand still appears, the Pualani paint job remains, and the word Hawaiian still carries deep meaning for many travelers. But the pricing system underneath is changing. That is how the pet fee increase connects to the meal complaints, the upgrade math, and more.

Hawaiian’s standalone pricing was not sustainable, and that reality is part of what made the acquisition necessary. Travelers can be angry about the loss and still see why the old setup wasn’t going to survive once a larger airline took over.

What to expect.

Don’t assume legacy Hawaiian terms still apply just because the flight is to, from, or within Hawaii. Check at booking, especially pets, bags, seats, food, and upgrade options. Check again too before departure, because readers are already finding gaps between what they expected, what they saw online, and what they report happened onboard.

For meals on mainland and long-haul flights, don’t rely on memory from past Hawaiian trips. Look closely at what is included, what must be pre-ordered, and what may now be sold onboard. If the site and the airline say one thing and the cabin delivers another, that’s the gap readers are now reporting.

Have you booked a Hawaii flight, interisland or mainland, since the merger took hold? What did you expect based on past Hawaiian service, and what did you actually get?