Provider to raise hurricane insurance rates 75 percent

Associated Press

An insurance company is notifying its 5,000 Hawai'i policyholders that rates for hurricane coverage will go up an average of 75 percent.

USAA spokesman Roger Wildermuth said a review of its Hawai'i business revealed that rates did not adequately cover the company's exposure to catastrophic losses.

"The threat of catastrophic hurricanes in Hawai'i presents a very significant risk to USAA and its membership based on modeling from highly regarded consulting firms," Wildermuth said. "Based on this data, USAA developed a responsible rate structure that we believe is in line with the risk presented to the association."

Wildermuth declined to disclose the average cost of hurricane coverage, but said it's typically 60 percent of the cost of the property portion of a USAA homeowner's package.

Most of the USAA policyholders are active or retired military and family members.

Hawai'i's largest insurer, State Farm Insurance, has filed to increase rates, but doesn't know yet if the increase is approved. Spokeswoman Carolyn Fujioka said she could not comment on what a likely increase would be.

State Insurance Commissioner J. P. Schmidt said other insurers also have filed recently for rate increases.