Posted on: Friday, March 18, 2005

New insurance for flood, quakes

By Deborah Adamson
Advertiser Staff Writer

A Utah company has begun offering flood, landslide and earthquake insurance in Hawai'i.

Poulton Associates, with the encouragement of the Hawai'i state insurance commissioner, is entering the market here for the first time. Lloyd's of London will provide insurance while AmWins Insurance Brokerage of California will underwrite the policies.

Craig Poulton, president of Poulton Associates, said Hawai'i is a market that holds much promise because many properties may be underinsured. For instance, flood insurance is mainly bought through the National Flood Insurance Program, a federal entity. But coverage is limited to $250,000 on homes and $500,000 for a commercial property.

Poulton can offer flood coverage of as high as $5 million for homes or business properties.

"With the high cost of property and construction here in Hawai'i, (the federal program's limits) often are not sufficient

to cover the property," said Insurance Commissioner J.P. Schmidt, who encouraged Poulton to do business here. Poulton "provides an alternative and benefit to the people who may be at this time underinsured."

Hawai'i residents can find a policy through InsureCat.biz while insurance agents can gain access through InsureCat.com.

"Insurance for flood, quake and landslide, including lava flow, in Hawai'i is almost unheard of and we will probably run out of supply before we run out of demand," Poulton said.

Reach Deborah Adamson at 525-8088 or dadamson@honoluluadvertiser.com.