Last updated: June 4, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Fix and flip insurance, sometimes called renovation or builder’s risk insurance, is a specialized policy designed for Hawaii real estate investors who buy properties to rehab and resell for profit. Unlike a typical homeowners policy, fix and flip insurance in Hawaii is engineered to address the risks of vacant homes, ongoing construction, and frequent changes in ownership—hallmarks of local fix and flip and BRRRR projects across the islands.
Whether you’re new to the Hawaii real estate scene or a seasoned investor working on several flips from Honolulu to Hilo, the right insurance is key to safeguarding your capital, reducing liability, and keeping your timeline on track.
The cost of fix and flip insurance in Hawaii has risen sharply—often by more than 25% over the past year and a half. This directly impacts your deal margins and project feasibility. At OfferMarket, we constantly review hundreds of insurance quotes for Hawaii-based rehab projects. On average, we find that local investors are quoted nearly 33% higher premiums than necessary, given lender criteria and true risk profiles.
This happens because many Hawaii real estate investors rely on agencies unfamiliar with the nuances of commercial policies or the unique risk environment of Hawaii properties. These agencies often push pricier options, earning more as premiums increase. Even well-meaning agents tend to present uncompetitive fix and flip insurance quotes since they’re often tied to a single insurer or lack deep experience with rehab projects.
That’s why we launched the OfferMarket Insurance rate shopping platform. With just a minute of your time, you can compare 40+ insurance carriers—tailored for Hawaii fix and flip projects—and lock in the best coverage for your needs. Our specialists understand what matters most to investors statewide, and we save our clients thousands of dollars every month. Let’s see how much you can save on your next Hawaii fix and flip!
Wherever you’re flipping in Hawaii—whether in bustling Honolulu, laid-back Maui, Kauai’s serene neighborhoods, or the up-and-coming Big Island—you’re covered with OfferMarket. Here’s a look at our reach:
Many Hawaii fix and flip projects begin with vacant or distressed properties. Standard homeowners insurance rarely covers unoccupied homes, and in Hawaii’s climate, risks like break-ins, weather-related damages, or hidden issues (such as water leaks) are heightened.
Whether you’re restoring a plantation-style home on Kauai, revamping a modern condo in Honolulu, or tackling a beachside bungalow on Maui, every renovation project brings its own set of risks:
Structural setbacks due to island climate or pests
On-site injuries to contractors or workers
Fire or electrical mishaps
Theft or loss of imported building materials
A Hawaii-specific fix and flip insurance policy is custom-built to cover these renovation risks at every phase.
If a worker or trespasser is injured on your Hawaii property, you could face serious financial exposure. Comprehensive coverage includes general liability protection for lawsuits, medical bills, and related expenses.
fix and flip insurance policies are built for flexibility and customization, offering broad protection throughout the life of your renovation—from the day you close in to your final resale or refi. Here’s what you can expect your fix and flip insurance to cover:
This protects the building and renovation materials against a range of -specific risks, including:
Fire (think of dry summers and wildfire season)
Vandalism and theft (especially for vacant homes)
Lightning strikes (common in summer storms)
Wind and hail damage (crucial in the Snake River Plain)
Water damage (excluding flood)
Damage from falling trees, debris, or accidental impact
If a third party—like a contractor, visitor, or trespasser—is injured at your project site, or if your renovation accidentally damages a neighbor’s property, fix and flip insurance provides:
Coverage for bodily injuries (slip and falls, onsite accidents)
Property damage to others (e.g., a broken fence during landscaping)
Legal defense costs in the event of a lawsuit
Often included within your fix and flip policy, builder’s risk coverage insures:
The structure under renovation (from farmhouse rehabs to city townhomes)
Construction materials (even if stored in a garage or delivered to the job site)
Newly installed systems, features, and finishes
Because many fix and flip projects start with an empty home, a vacant property endorsement keeps your insurance active even while the property is unoccupied—vital in protecting against vandalism, theft, and undetected damages.
Optional, but recommended for investors managing multiple projects or using specialized machinery. This protects:
Owned or rented tools and equipment stored onsite
Coverage for theft or damage during construction
If city or county codes require you to upgrade or rebuild portions of your property after a covered loss, this add-on pays for:
Demolition and debris removal
Bringing the property up to local codes
Extra construction costs required by new laws
If you plan to rent out your property after the flip—or even during renovations—loss of rents coverage (also known as “business interruption insurance”) compensates you for rental income lost due to a covered claim.
While fix and flip insurance is broad, it does not cover:
Wear and tear, or substandard work
Flood damage (you’ll need separate flood insurance—important in certain river valleys)
Earthquake damage (often requires a separate rider in some counties)
Deliberate or criminal acts, including fraud
Acts of war or government seizure
Pro Tip: Always review your exclusions closely and talk with a local insurance agent to make sure your property is properly protected.
Fix and flip insurance is essential for:
Individual Hawaii investors and flippers
Real estate LLCs and partnerships
Wholesalers taking title before resale
Private lenders protecting their collateral
Whether you’re flipping a historic Hilo cottage or a luxury Honolulu condo, insurance should be your first line of risk management.
Insurance premiums in Hawaii depend on:
Island location and neighborhood
Property value and size
Renovation scope and budget
Project duration
Coverage limits and deductibles
| Property Value | Rehab Budget | Estimated Annual Premium |
|---|---|---|
| $150,000 | $50,000 | $1,200 – $2,200 |
| $300,000 | $100,000 | $1,700 – $2,900 |
| $500,000 | $200,000 | $2,500 – $3,900 |
Note: Most Hawaii policies refund unused premiums pro-rata if you cancel before the end of term—commonly due to property sale or refinance. Bundling multiple properties into a portfolio policy may also lower your per-property cost.
When shopping for Hawaii fix and flip insurance, your best bet is to work with an agency that specializes in local projects and can shop multiple carriers. We recommend a policy that combines property, liability, business interruption, and, where needed, flood insurance for Hawaii’s unique risks.
The OfferMarket Insurance platform connects Hawaii investors with custom coverage options from top-rated carriers—at highly competitive prices.
OfferMarket streamlines the process for Hawaii investors by connecting you with experts who understand the challenges of island investing.
Rapid quotes in less than 24 hours
Custom-tailored policies for 1 to 100+ Hawaii properties
Support for a range of ownership structures: individual, LLC, trust, or corporation
Deep familiarity with Hawaii lender requirements
Access to 40+ top-rated national and local carriers
Easy certificate of insurance (COI) generation
Secure, cloud-based record keeping
Most Hawaii lenders require:
Property coverage at least equal to the loan amount
General liability (usually $1M+ per occurrence)
Named insured and loss payee clauses
Proof of insurance before closing
Continuous coverage throughout the loan term
Failure to maintain adequate insurance can trigger:
Loan default
Costly force-placed insurance
Personal liability for damages
OfferMarket works directly with your lender to coordinate insurance—making the process seamless whether you’re financing your Hawaii flip with us or another provider.
If you’re investing in more than one Hawaii property at a time, consider:
Blanket policies: One policy covering all your flips
Scheduled policies: Each property listed individually
Master policies: Combine multiple coverages into a single premium
Our team helps high-volume Hawaii investors cut costs and streamline administration.
Use this checklist to ensure your Hawaii fix and flip project is fully protected:
| Requirement | Included? |
|---|---|
| Full replacement cost coverage | ✅ |
| General liability of at least $1M | ✅ |
| Vacant property endorsement | ✅ |
| Builder’s risk during renovation | ✅ |
| Tools and equipment coverage | Optional |
| Lender named as loss payee | ✅ |
| Flood/earthquake insurance if needed | Optional |
| Timeline matches policy dates | ✅ |
| Certificate of insurance issued | ✅ |
Below are typical guidelines for Hawaii fix and flip insurance as required by most lenders:
| Criteria | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Term | 1 Year |
| Limits | Replacement Cost or Loan Amount (as needed) |
| Deductible | $5,000 |
| Accepted Policy Types | Special Form Dwelling Fire, Commercial Property |
| Cancellation | 30 days’ notice |
| Exclusions | No windstorm/hail/named storm exclusion |
| Lender Designation | Mortgagee |
| Criteria | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Term | 1 Year |
| Limits | $1,000,000 per occurrence |
| Aggregate Limit | $2,000,000 |
| Deductible | $1,000 |
| Basis | Occurrence |
| Cancellation | 30 days’ notice |
| Lender Designation | Additional Insured |
| Criteria | Details |
|---|---|
| Mandatory | Yes (if property will be rented) |
| AM Best Rating | A- VIII or higher |
| Term | 1 Year |
| Limits | One year gross rental revenue |
| Coverage Basis | Actual Loss Sustained |
| Cancellation | 30 days’ notice |
| Lender Designation | Mortgagee |
| Criteria | Details |
|---|---|
| Mandatory | Only if in FEMA flood zone |
| AM Best Rating | A- VIII or higher |
| Term | 1 Year |
| Limits | Greater of $250,000 or loan balance |
| Cancellation | 30 days’ notice |
| Lender Designation | Mortgagee |
For Hawaii investors, lender requirements for insurance may include unique considerations, especially with properties such as condos or PUDs (Planned Unit Developments). Your fix and flip insurance policy must meet these detailed standards for closing and ongoing compliance.
| Requirement | Hawaii-Specific Guidance |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos | - Blanket policy may be used if it covers the specific Hawaii unit. - HOA must provide “all risk” insurance for common areas, fixtures, personal property, and equipment at full replacement cost. |
| PUDs | - Project’s blanket policy may be used for individual Hawaii units. - HOA must maintain “all risk” coverage for shared areas and structures at 100% of their insurable value. |
| Instructions | - Use an ACORD form for proof of insurance. - Submit insurance certificates, invoices, or paid receipts no later than 24 hours before closing. - Provide final policy documents within 60 days of closing. |
| Vacancy Notification | - Notify your carrier if the Hawaii property becomes vacant. - Obtain a vacancy permit for the full vacant period to keep your coverage valid. |
OfferMarket is the trusted partner for Hawaii real estate investors and private lenders. Our platform streamlines not only buying and financing property, but also securing the right insurance for your project.
All-in-one deal and insurance management
Dedicated investor support from our Hawaii team
Integrated insurance, lending, and exclusive off-market deals
No wasted time shopping—our experts do it for you
Smart, investor-focused insurer matching
Yes. Lenders or title companies will require insurance proof before closing. OfferMarket can issue a COI within hours.
Yes. Be sure to disclose all work in progress; some carriers may require an inspection or limit coverage types.
You’ll receive a prorated refund for unused premium if you cancel the policy early.
Yes—OfferMarket offers portfolio policies for investors with multiple projects.
Fix and flip insurance may not cover active tenants. Ask about landlord or hybrid policies for temporary occupancy.
Our rate shopping platform finds you the most competitive policy that meets your and your lender’s guidelines. Our team quality controls every quote.
You can, provided they can offer competitive commercial coverage and follow lender guidelines. Many investors save time and hassle by using OfferMarket’s Hawaii insurance specialists.
Yes. You can pay your Hawaii fix and flip insurance premium via the settlement statement or directly to your agent. You’ll need to provide a paid receipt if paying directly.
Most Hawaii lenders don’t require escrow. You’re responsible for keeping your policy active and paid, especially for projects longer than a year.
AM Best rates the financial strength of insurance companies. A rating of A- VIII or better is standard for Hawaii fix and flip projects.
It protects your property and materials during renovation. Coverage usually ends when ownership transfers, the property is occupied, or construction is complete.
Fix and flip insurance in Hawaii isn’t just nice to have—it’s a must. With tight margins, aggressive timelines, and Hawaii’s unique risks (from tropical storms to supply chain delays), smart investors protect their downside as fiercely as they chase profits. Whether you’re working one deal a year or juggling dozens of flips, OfferMarket’s solutions are built to scale with you.
Protect your capital. Safeguard your reputation. Build your future—right here in Hawaii.
OfferMarket is your Hawaii partner for real estate investing success—specializing in 1-4 unit properties statewide.
Our mission: Help you build wealth through smart, risk-managed real estate investing.
☂️ Landlord Insurance rate shopping platform specialized in landlord insurance that meets DSCR loan guidelines 🏚️ Off Market Properties marketplace featuring hundreds of exclusive and off market deals posted by wholesalers, tired landlords and distressed sellers. 💰 Private Lending featuring instant quotes and a simple, low cost, transparent borrowing experience for DSCR loans, Fix and Flip loans and Slow Flip loans. 💡 *Insights regularly published to provide you with a knowledge advantage.