Mauna Loa Eruption and Property Insurance

[Carlos Ptriawan]

Now that Mauna Loa has erupted, what's the property insurance company going to do if the lava hits a residential area like Hilo? Are they going to cover it 100% ? are they going to raise property insurance for the whole big island ?

What's your story on this as it happened before (like Kalapana in 2018) ? 

[Aaron Porter]

Most homeowner policies have coverage for property loss caused by volcanic eruption when it is the result of a volcanic blast, airborne shockwaves, ash, dust or lava flow. Fire or explosion resulting from volcanic eruption also is covered.  

But I am sure that there are some homes in or around Hilo that could have opted out of that coverage.  As for what is going to happen with rates across the whole island, I would say that is a total guessing game.  I literally just got back to the mainland a week ago and was able to go see some of the damage that was caused by the 2018 eruptions. 

I will be watching very closely as the big Island is one of my favorite places ever.  

There is an insurance agent on BP who lives in Hawaii, I can't remember his name but maybe he will have some more insight.