Hawaii
Insurance Prices Threaten An Affordable Housing Oasis In Hawaii
Lahilahi Heen has lived for decades in a three-bedroom house surrounded by a carefully groomed garden in the lush Hawaiian Shores subdivision in Lower Puna. It’s also downslope from Hawaii’s most active volcano.
Her house sits outside Pahoa Village in an area that was threatened by a lava flow from Kilauea volcano in 2014. The lava never reached her neighborhood, but the danger is ever-present and she now faces a new risk.
The price of her homeowner’s insurance soared from $1,500 in 2022 to $5,000 the next year. Heen couldn’t afford that, she said, so she took a risk. She scraped together $30,000 in mostly borrowed money to pay off her mortgage, so she could go without insurance.
“It was super, super stressful. I learned new swear words,” she said, recalling that decision.
Heen is one of thousands of Big Island residents coping with a dire shortage of inexpensive insurance in sprawling subdivisions built generations ago in the two most hazardous lava zones.
Those areas offer some of the most affordable housing in Hawaii. The median home price in Pahoa — the largest town in Puna — is about $360,000. But private insurers have almost entirely abandoned Lava Zones 1 and 2 because they were deemed too risky to cover.
That means for many homeowners there the only coverage available is offered by the Hawaii Property Insurance Association, which was created by the state in 1991 to insure homes in the lava zones. But HPIA coverage has become so expensive that people in the lava zones are canceling their policies or putting their homes up for sale.
The insurance crisis in the lava zones could happen to other Hawaii homeowners as more dramatic impacts from climate change take hold across the state. Lawmakers are concerned that more private insurers may pull out and are preparing mechanisms to deal with that.
Earlier this year legislators considered bills to make coverage through HIPA and the Hawaii Hurricane Relief Fund available to homeowners who can’t obtain insurance through the private market if that becomes necessary.
But experts say little can be done about the escalating cost of coverage in areas such as the lava zones, where private coverage is unavailable.
‘They’re Just Going Without’
In the 1950s and 1960s, county officials allowed developers to chop up thousands of acres in high-risk lava zones and sell the land off as house lots with minimal infrastructure. In recent decades thousands of people have moved into those areas in large part because they offer cheaper housing in a state with one of the highest costs of living in the nation.
Puna, which at about 500 square miles is roughly the size of Oahu, was the site of an eruption in 2018 in Leilani destroyed more than 600 homes, beginning the exodus of private insurers and a reliance on the Hawaii Property Insurance Association.
Andrea Rosanoff and her husband, Steven Sparks, have lived since 2003 in a home they built themselves in the jungle in Leilani Estates, a subdivision on Kilauea’s East Rift Zone.
They pay $5,900 per year for the maximum available $350,000 in coverage. That is a huge strain for a couple living on social security benefits, but they are determined to stay put.
Some of their neighbors have been forced to make hard choices.
“What’s happening is people who own their homes — many of them retired schoolteachers, retired nurses and so on who own their homes — many of them are just not buying insurance. They’re just going without,” Rosanoff said.
Other homeowners are paying for a year of insurance at the new, high rates to buy time so they can sell out, Rosanoff said. “It’s kind of decimating the homeowners of this very affordable area,” she said.
State House Vice Speaker Greggor Ilagan, who represents the area, proposed several measures during the session earlier this year. Two bills that called for capping insurance premiums and imposing a moratorium on foreclosures in the lava zones never got a hearing.
Another bill aimed at creating a pool of funding to subsidize insurance premiums for the lava zones also quietly died.
Ilagan’s pitch is essentially that the state should intervene to help lower income people who are in danger of being forced out of their homes, especially older adults on fixed incomes. That may include subsidizing premiums.
Some firmly disagree. Alison Ueoka, president of the Hawaii Insurers Council, said insurance prices should reflect the risk, and the lava zones are quite risky.
In fact, the Hawaii Property Insurance Association would like to raise rates even higher, she said. HPIA did not respond to a phone call seeking comment.
“If the state is going to choose to subsidize people who choose to live in the lava zones, I would imagine that everybody else would have their hand out for some subsidy as well,” Ueoka said. “What makes them more special than anybody else? I mean, they already got a cheaper price on the home.”
Lava zone homeowners may be low-income residents, but “there are poor folks everywhere,” she said. The nonprofit insurers council represents about 40% of the property and casualty carriers operating in Hawaii.
Beyond The Lava Zones
Ilagan contends that Hawaii lawmakers need to look beyond the lava zones to also consider similar problems that condominiums are having with insurance on Oahu, as well as the difficulties property owners in coastal areas such as Oahu’s North Shore are have obtaining affordable coverage.
“We have an insurance problem all throughout the state, and the solution has to be comprehensive,” rather than treated simply as a Big Island issue, he said.
People live in lava zones for the same reason they move into Oahu condos without fire sprinklers — because it is an affordable way to live in Hawaii, he said.
Rosanoff has been working to establish a nonprofit organization to help push for a solution but progress has been slow. She believes that the issue “is an opportunity for us to think in new ways.”
Rosanoff sees the situation in Lava Zones 1 and 2 as a warning to the rest of the state because homeowners elsewhere may soon confront the same insurance price squeeze.
“These natural disasters, the hurricanes and climate change, this is our future,” she said. “Let’s get real.”
She wants the state to step in as a provider of reinsurance, coverage that insurance companies including HPIA buy to spread the risk and guard against catastrophic losses.
“That might provide some real long-term relief,” she said.
The price of reinsurance also has dramatically increased in recent years, fueled in part by losses from global disasters.
Ilagan also introduced a bill to establish a working group to study the possibilities for establishing some sort of state-backed reinsurance program, but that measure died in the state Senate after passing in the House.
Insurers Of ‘Last Resort’
Still, Hawaii’s insurance problems are getting top-level attention.
A measure to try to stabilize Hawaii’s condominium insurance market died at the Legislature this year, but Gov. Josh Green issued an emergency proclamation in August to temporarily authorize the Hawaii Hurricane Relief Fund and HPIA to provide coverage to condo associations.
That proclamation also establishes a joint executive and legislative task force to monitor the insurance market, implement short-term fixes and recommend emergency changes.
Senate Commerce and Consumer Protection Committee Chairman Jarrett Keohokalole said lawmakers and the Green administration are seeking ways “to provide that same type of last resort insurance (as HPIA) to property owners across the state in case more insurers leave the market, and there are no commercial options available.”
Lawmakers also are looking to reactivate the Hawaii Hurricane Relief Fund program with a new board of directors to prepare it to once again offer hurricane policies if that becomes necessary, he said. The HHRF program has not issued policies in more than 20 years.
But all of that activity will not solve the insurance problems in the lava zones, including many who rely on the Hawaii Property Insurance Association.
Keohokalole said that shows that HPIA is doing its job.
“The state fix is working in Puna, and it’s to provide an insurance policy of last resort when there are no commercial options available,” he said, adding the expense comes from the need to cover operational costs, including buying reinsurance.
“The premiums are high because this state last resort program still needs to be financially viable,” he said.
Keohokalole said global reinsurers have lost $100 billion a year for five years running because of disasters around the nation and the world, and they are recalculating their risks and raising their rates. That helps fuel the escalating cost of HPIA coverage in the lava zones.
As for subsidizing coverage in the lava zones, Keohokalole said, “I think we would have to see in this coming Legislature whether the taxpayers from across the state would like to subsidize residents living in the lava zone.”
“I think the harder question is, if we’re going to subsidize insurance rates, what kind of a precedent does that set, and how much is it going to cost us?” he asked. “It’s unclear because of all of those insurance market dynamics.”
Industry Concerns
Ueoka, the Hawaii Insurers Council president, said HPIA actually amounts to a burden on the private insurance industry because private insurers could be slapped with assessments to support HPIA if it ever runs out of money.
HPIA is the Hawaii version of what is known as a Fair Access to Insurance Requirements Plan, a state-mandated program to provide coverage to people and businesses that cannot buy coverage on the regular market.
When FAIR plans suffer losses that exceed their reserves and reinsurance limits, that can trigger assessments on private insurers in that market to help cover the loss. The specter of those potential assessments can cause insurers to reduce business in a market or even withdraw entirely from that market, Ueoka said.
Despite those concerns, the Hawaii Insurers Council supported a bill this year to expand the reach of HPIA to take on more risk such as condominiums because “HIC is looking at statewide solutions,” she said.
The insurers council is also participating in working groups to prepare legislation for next year that would position the hurricane relief fund and HPIA to provide coverage as necessary.
‘Everybody’s Scrambling’
Heen, a 64-year-old bank teller, said her old insurance company, Universal Property & Casualty, canceled her coverage when it left the Hawaii market. She worried that her bank would force her to buy even more expensive insurance or possibly even try to take her home if she went without.
So she paid HPIA about $5,000 for one year of coverage with money that was given to her as a gift, then dropped that policy once she paid off her mortgage.
She said she would like to buy coverage to insure her Hawaiian Shores home against hurricane damage, at least, but needs to save up for a while.
She met one woman who said she was losing her home because she can’t pay her bills, and has talked with others who are urgently searching for cheaper housing because their landlords raised the rent to cover their insurance costs.
“Everybody’s scrambling for the same lower rent, or the possibility of lower rent,” Heen said.
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Alaska Airlines continues to expand its Hawaii network with a significant new route connecting Honolulu (HNL) and California. This latest addition reflects Alaska’s fast-growing influence on Hawaii travel. It raises intriguing questions about the competitive dynamics of leveraging Hawaiian Airlines, which already flies this route, with other potential players in the wings.
Alaska Airlines expands west coast-Hawaii options.
Starting June 12, 2025, Alaska Airlines will begin operating daily flights between Honolulu and Ontario (ONT), California. Hawaiian Airlines already serves this route, which uses its A321neo narrow-body. Before this announcement, Hawaiian was the only carrier that connected the Inland Empire to the islands.
Alaska’s move doesn’t clarify what could happen next, including Hawaiian possibly ending its flights, shifting to seasonal service, or both carriers maintaining dual operations. We’re sure to learn more about that soon. Upon checking, we see that both airlines have Ontario on their schedule through November 30.
One fascinating aspect is that we previously understood Alaska had planned to leverage the Hawaiian brand for all flights touching the islands. It isn’t clear if that will continue to be the case.
Aviation observer Ishrion Aviation first reported this new route. It highlights Alaska’s recognition of the growing potential of Southern California’s smaller airports. Ontario International Airport and the entire Inland Empire may become increasingly vital hubs for Hawaii travelers seeking to avoid the off-putting congestion of LAX. With its convenient location and super easy access, ONT and neighboring San Bernardino offer a fascinating advantage for Hawaii travelers in the region. BOH editors travel frequently between Hawaii and the Island Empire, which has also piqued our interest.
Strategic implications for Southern California and Hawaii.
This new route is a smart move for Alaska Airlines as it seeks to strengthen its hold on Hawaii-bound travelers from secondary airports in Southern California. ONT’s proximity to San Bernardino (SBD)—where Breeze Airways has hinted at potential Hawaii flights—adds another layer of intrigue.
Could Alaska’s expansion be a preemptive strategy to solidify its presence and counter any future competition from Breeze, which has yet to confirm Hawaii routes and must first obtain ETOPS certification? It also hints at Breeze perhaps being more of a Hawaii aspirant than we even realized.
In December, Alaska pointed to Ontario as part of its Hawaiian-Alaska integration plans, stating that ONT would likely be included in the next group of airports to share facilities between the two airlines.
You’ll recall that Hawaiian previously served Ontario using widebody aircraft before it brought the A321 to the route. BOH editors confirm having traveled on HNL-ONT when it was still a widebody flight and enjoyed ONT’s convenience. Alaska’s move to re-focus on this market with more narrow-body service aligns with the broader trend of airlines leveraging smaller, less congested airports to appeal to Hawaii leisure travelers seeking convenience.
This route offers an additional, traveler-friendly alternative to reach the islands for Hawaii visitors from the Inland Empire and surrounding areas. Alaska is positioning ONT as a key gateway for Hawaii-bound travelers while expanding its dominance in Southern California.
Alaska and Hawaiian Airlines before full integration.
Alaska Airlines and Hawaiian Airlines maintain a partnership with Alaska as owner as they work toward full integration under one operating certificate later this year. This relationship is increasingly being leveraged as Alaska strategically expands its West Coast network.
The addition of the HNL-ONT route showcases Alaska’s abilities in this area, integrating its Boeing 737 MAX and Hawaiian’s Airbus A321neo fleets while utilizing Hawaiian’s widebody aircraft for strategic long-haul reach.
This evolving dynamic is reshaping Hawaii travel, with Alaska drawing on both companies’ capabilities and assets to strengthen its dominance in the market. As the integration progresses, travelers can look forward to more streamlined operations and expanded route possibilities under Alaska’s leadership.
What Hawaii travelers can expect.
Alaska’s entry into the HNL-ONT market brings both opportunities and questions. The increased competition still lies ahead and may lead to lower fares, making Hawaii more accessible to residents of Southern California. However, the sustainability of the two airlines operating daily flights on this route remains uncertain and will be revealed over time.
A new era of Hawaii travel.
Alaska Airlines’ addition of the Ontario to Honolulu route highlights its commitment to reshaping Hawaii travel. By leveraging the two fleets, Alaska is expanding its network and redefining competition in the Hawaii travel market. For travelers, these changes bring increased choices and the possibility of better pricing while raising questions about how the industry will adapt.
As Alaska continues to expand its dominance, it’s clear that Hawaii travel is entering an entirely new era where convenience, competition, and strategy play pivotal roles.
We welcome your input and insights.
Photo Credit © Beat of Hawaii.
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The Tesla Cybertruck that exploded in front of the Trump Hotel in Las Vegas had gasoline cannisters and large firework mortars, according to police.
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Six critically burned patients arrived in Phoenix from Hawaii on Saturday night, following a New Year’s Eve firework tragedy that left three dead and over 20 injured.
The six patients, who are in their 20s and 30s, are in critical condition and have burns covering 60% to 80% of their bodies, said Valleywise Health chief clinical officer Dr. Michael White.
White said all six have a good chance of survival and that Valleywise Health does not expect more patients to be flown in.
Hawaii’s only burn center is located on Oahu where the incident took place, but beds are limited. White said the Diane and Bruce Halle Arizona Burn Center in Phoenix, Arizona’s only burn center and one of the largest in the country, has the ability to help.
“When the call is made, we’re more than happy, if we have the capacity and expertise, to help these patients,” White said.
According to Hawaii Gov. Josh Green, the six were chosen due to the severity of traumatic injuries and burns sustained during the incident. Green authorized a C-17 military transport to fly them into Phoenix and it arrived at Sky Harbor International Airport around 8:30 p.m. Saturday.
On X, Phoenix mayor Kate Gallego applauded Phoenix Fire’s efforts to transport the patients from Sky Harbor.
Phoenix fire officials collaborated with both state and federal agencies, including the Department of Defense, to ensure the patients were transported to Valleywise Health safely.
“This shows our dedication to saving lives beyond our state borders,” a Phoenix Fire Department spokesperson said.
Among those flown into Arizona was a mother of a 3-month-old.
On the cusp of New Year’s Day, three people died and over 20 were injured from a firework explosion around midnight in the Aliamanu, also known as the Salt Lake, neighborhood near Pearl Harbor and Honolulu on Hawaii’s third largest island.
What caused the explosion?
In a Jan. 1 press conference from the Honolulu Police Department, authorities said a person lit a firework “cake” containing around 50 individual aerial fireworks that somehow tipped over, shooting into other crates also filled with fireworks and resulting in the fatal explosion. Authorities estimated fireworks recovered at the scene cost tens of thousands of dollars.
“It looked like a war zone,” Honolulu Fire Chief Sheldon Hao said during the press conference.
Videos posted on social media appear to show dozens of fireworks exploding in a massive, bright blaze, with plumes of smoke rising in the air. The blast appeared to explode on a resident’s front lawn, along a dense neighborhood street dotted with parked cars.
Twenty-three adults and three children were seriously and critically injured in the explosion, though the estimate does not account for those who admitted themselves into the hospital, authorities said. Two women died at the scene and a third passed away a few hours later.
“Make no mistake, it was a bomb … it was a firework bomb,” Gov. Green said.
Most people injured sustained burns, but injuries also included those caused by shrapnel that were “gruesome,” said Honolulu Emergency Services Department director Dr. Jim Ireland at the press conference.
Honolulu police said the person who lit the fireworks, as well as those who potentially supplied the illegal ones, may face criminal prosecution pending the investigation.
A fourth person died due to an unrelated firework incident in the Kalihi area about six miles away.
‘Best left to the professionals’
Fireworks are fundamentally dangerous, Dr. White from Valleywise Health noted. “They are explosive devices. (There’s) risk for burns and risk for injuries such as this,” he said.
In Phoenix, any firework that is designed to shoot off the ground is illegal and can carry a misdemeanor charge, fines or jail time, according to Sgt. Brian Bower with Phoenix police.
Fines for illegal fireworks vary per city:
- Avondale: $1,000.
- Chandler: $1,000.
- Gilbert: $1,000.
- Glendale: $1,500 on first offense, $2,000 on second offense.
- Goodyear: $1,000.
- Mesa: First offense $500; each subsequent offense between $1,000 and $2,500.
- Peoria: $750.
- Phoenix: $1,000.
- Queen Creek: $1,000.
- Tempe: $1,000.
- Tolleson: $250.
- Scottsdale: Minimum fine of $275.
- Surprise: No less than $150, no more than $1,000.
Cities also can hold residents liable for fire damage and emergency responses related to fireworks use. “Fireworks should be left to the professionals,” White said.
Multiple GoFundMe pages have been started to aid those who were injured or died in the New Year’s Eve incident.
A three-year-old boy has become the fourth person to die after a massive explosion of fireworks at a home in Honolulu, Hawai’i on New Year’s Eve, according to a US burns doctor.
The blast killed three women and injured more than 20 people, with many suffering from burns to most of their bodies.
The US military flew six of the injured people from Honolulu to Phoenix, Arizona for treatment on Saturday because Hawaii’s lone burns centre doesn’t have the capacity to care for all of the victims.
The incident has since sparked renewed calls from Hawaii’s leaders to crack down on the state’s vast illegal fireworks trade by introducing enhanced enforcement and bigger penalties.
Hawaiian authorities say the massive explosion was caused by a bundle of aerial fireworks that fell on its side and shot explosives into two crates containing additional explosives. (AP: Marco Garcia)
Kevin Foster, the director of the Arizona Burn Center, said in a press conference on Monday local time that the six victims flown to Arizona were aged in their 20s or 30s and were suffering from extensive burns.
“The smallest [injury] is about 45 per cent of total body surface area, almost half of the body burned, and the largest is just under 80 per cent of the body surface,” Dr Foster said.
He said many required emergency surgery before they could be flown from Hawai’i.
Professional-grade aerial fireworks have been growing in popularity among Hawaiian residents in recent years, even though they are illegal for amateurs to use. (AP: Marco Garcia)
In addition to the burns, almost all of the victims are suffering “projectile injuries” caused by explosive particles that flew through the air, according to Dr Foster.
The doctor said all six patients were showing good vital signs, but they may not be able to resume a normal life for up to a year.
At least four of the patients are expected to remain intubated in medically induced comas for months, and some of them could suffer from post-traumatic stress disorder as a result of the incident.
“There’s something uniquely and particularly horrifying about being burned, especially from this type of injury,” Dr Foster said.
Debris, burnt wood and furniture are piled up in front of the Honolulu home where the explosion took place. (AP: Marco Garcia)
Hawaii’s diverse population has long celebrated New Year’s with fireworks, but in recent years, professional-grade aerial explosives have been growing in popularity even though they are illegal for amateurs.
Honolulu authorities say a person attending a party lit a bundle of aerial fireworks, which fell on its side and shot explosives into two crates that contained additional explosive items.
Video of the resulting explosion shows a rapid series of blasts shooting fireworks in the air and around the front of a house.
AP
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