Time was, water catchment was an immediate disqualifier for many buyers. Of equal concern were lava zones 1 or 2. Today’s buyers are focused on privacy and ambiance. They want to know they are in Hawaii. In East Hawaii, what they see is often found in Puna where catchment is the norm and well as they say, lava happens. Rarely do Realtors® hear complaints about catchment and because insurance is available, lava zones are full considered. Technical information regarding lava zones can be found on the USGS website or in a brochure entitled “Volcanic and Seismic Hazards on the Island of Hawaii”.

 

Through what was formerly the known as the “State” or HPIA plan, homes can be fully covered up to $250,000. While that coverage was adequate in the past, many will be surprised to learn that prices, even in Zones 1 & 2 are quickly approaching statewide averages. Available coverage often falls short of the purchase price. Previously available coverage from other mainstream providers is unfortunately not available at this time. Those requiring additional coverage must consider coverage less conventional sources. Here’s a list of affected areas by subdivision. Originally part of an HTH column, my copy is old, over-referenced and has long since forgotten its “birthday”. None-the-lee, the information is both useful and interesting.

 

Most of Kapoho, Leilani Estates, and Lanipuna Gardens are in Zone 1 (considered the highest risk). Interestingly, Kalapana, Kahena, Kaimu and even the parts of now covered Royal Gardens are in Zone 2. Hawaiian Shores, Beaches, Parks and Shores-Rec are in Zone 2 as well. Kapoho Beachlots and Vacationland straddle the two zones. Ainaloa, Hawaiian Paradise Park and Hilo are all Zone 3. Zones in East Hawaii are delineated relative to the East Rift Zone. Hawaiian Ocean View Estates, also Zone 1 sits directly along the West Rift Zone. When a loan is necessary, it’s usually advantageous to work with a local broker especially in zones 1 & 2. Mainland underwriters seem to get jittery when they see the word “lava” on an appraisal report. They ask for “lava coverage”. It doesn’t exist. Homes are covered under the normal fire policy. Never mind that the rest of the world faces the daily possibility of a variety of unpredictable natural disasters; those faded “B” movie memories seem to survive common sense. Seems to me they need to understand that in Hawaii, we just learn to go with the flow!