Hawaii has roughly ~185,000 renter-occupied units. Average DP-3 landlord premium runs $1,820/yr — about 25–30% above a comparable homeowners policy due to higher liability and vacancy risk. Market profile: Small, high-cost rental market concentrated on Oahu; Maui and the Big Island have significant vacation rental concentrations. Short-term rental climate: Among the most restricted STR environments in the nation; Maui and Oahu have imposed stringent STR bans and moratoriums.
Avg DP-3 Premium
$1,820/yr
Annual landlord/rental cost
Rental Units
~185,000 renter-occupied units
Renter-occupied housing
STR Climate
Among the most restricted STR environments in the nation; Maui and Oahu have imposed stringent STR bans and moratoriums
Among the most restricted STR environments in the nation; Maui and Oahu have imposed stringent STR bans and moratoriums
| Topic | Detail | Notes |
|---|---|---|
| Market profile | Small, high-cost rental market concentrated on Oahu; Maui and the Big Island have significant vacation rental concentrations | Drives coverage form selection |
| Top landlord carriers | State Farm, Farmers, Island Insurance, First Insurance Company of Hawaii, Allstate | Specialized DP-3 underwriting |
| Short-term rental environment | Among the most restricted STR environments in the nation; Maui and Oahu have imposed stringent STR bans and moratoriums | Airbnb-specific coverage needed |
| Notable state law | Maui County STR ban on non-hosted rentals in residential zones (2022); Oahu restricts STRs outside resort zones; Kauai has strict permitting | Affects landlord obligations & coverage |
DP-3 (Dwelling Fire) is the standard landlord policy form, covering the structure on an open-perils basis. Landlords also need liability coverage (often $300K–$1M) and Loss of Rents (typically 12 months). Standard homeowners policies do NOT cover rental properties.
Hawaii's rental market operates under unique and severe constraints. The state has among the highest housing costs in the nation, and the rental market — particularly on Oahu — is intensely competitive with very limited supply. Multi-family rentals dominate Honolulu's urban core, while single-family rentals are more common in suburban Oahu and on the neighbor islands. Hawaii has enacted some of the most aggressive STR restrictions in the country following years of housing advocates arguing that vacation rentals have contributed to affordability crises. Maui County's 2022 ban on non-hosted STRs in residential zones has dramatically reduced the island's STR supply, and Oahu similarly limits rentals to resort-designated zones. The Big Island faces unique volcanic hazard risk in the Puna district that most carriers now exclude or heavily surcharge.
Hawaii landlords should be aware that standard homeowners or landlord policies often exclude or heavily limit volcanic activity coverage — particularly for properties on the Big Island near active lava flow zones in lower Puna. A separate volcanic activity endorsement or surplus lines coverage is essential for Puna properties. Oahu landlords in urban Honolulu should prioritize DP-3 coverage with robust liability limits given the dense multi-family environment and strong tenant protections under Hawaii's Residential Landlord-Tenant Code. Loss-of-rents coverage is important given Hawaii's active hurricane season and the potential for significant wind and flooding damage from tropical systems. STR operators on Maui and Oahu should consult an attorney alongside an insurance agent — the legal and insurance requirements interact in complex ways given the recent regulatory changes.
A DP-3 dwelling fire policy is the standard landlord form. Unlike an HO-3, it covers the building structure and landlord-owned contents (appliances, lawn equipment) — not the tenant's personal belongings. Tenants must carry their own renters insurance. DP-3 also includes loss of rents coverage (typically 12 months) if a covered loss makes the unit uninhabitable.
Standard DP-3 policies often exclude or limit short-term rental (Airbnb/VRBO) use. Most landlord carriers either require an endorsement, a separate STR policy, or a commercial dwelling policy. Airbnb's "AirCover" host protection is NOT a substitute for your own policy — it has many exclusions and lower limits.
Maui County STR ban on non-hosted rentals in residential zones (2022); Oahu restricts STRs outside resort zones; Kauai has strict permitting
💡 Hawaii Pro Tip
Hawaii landlords typically pay $1,400–$2,400/year for a DP-3 policy on Oahu or Maui. Big Island properties in Puna or coastal areas may cost $2,000–$4,000+ when volcanic activity exclusions require surplus lines coverage. High property values and hurricane exposure push all Hawaii premiums above national averages.
No — and Hawaii's legal environment makes STR operation itself highly restricted in most residential zones. Maui County's ban on non-hosted STRs in residential zones, combined with Oahu's resort-zone limitations, means most Hawaii landlords cannot legally operate an Airbnb outside designated resort areas. Even in legally permitted locations, a commercial STR policy is required rather than a standard landlord policy.
Hawaii has no law requiring landlord insurance. Mortgage lenders impose their own requirements. Given the high property values, hurricane risk, volcanic hazard on the Big Island, and strong tenant protections under Hawaii's landlord-tenant law, comprehensive DP-3 coverage with appropriate endorsements is essential for every Hawaii investment property.
Rental unit counts from US Census American Community Survey; premium averages from 2026 carrier rate filings for Hawaii. Verify your specific property's coverage with a licensed agent.
Sarah Mitchell
Editorial Lead, Property & Casualty
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed May 2026
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This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.