Insurance Glossary

Lava Zone

Property

Definition

Hawaii's volcanic hazard classification system ranging from Zone 1 (highest risk) to Zone 9 (lowest risk), based on the frequency and coverage of historic lava flows. Lava zones significantly affect property insurance availability and rates, with properties in Zones 1 and 2 often requiring coverage through the Hawaii Property Insurance Association.

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Related Terms

HPIA

Hawaii Property Insurance Association - a residual market mechanism that provides property insurance for homes in high-risk lava zones (primarily Zones 1 and 2) that cannot obtain coverage in the voluntary market. HPIA is an association of all property insurers licensed in Hawaii.

Volcanic Eruption Coverage

Insurance protection for property damage caused by volcanic activity, including lava flow, volcanic blast, airborne shock waves, ash, dust, or particulate matter. In Hawaii, most all-risk homeowners policies include volcanic eruption coverage, though availability varies by lava zone. There is no specific 'lava insurance' policy.

All-Risk Coverage

Insurance coverage that protects against all causes of loss except those specifically excluded in the policy, providing broader protection than named perils coverage. Also called 'open perils' coverage.

Actual Cash Value

The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.

Depreciation

The decrease in value of property over time due to wear, tear, age, or obsolescence.

Replacement Cost

The cost to replace damaged or destroyed property with new property of similar kind and quality, without deduction for depreciation.

Homeowners Insurance

Insurance coverage that protects your home and personal property against damage, theft, and liability claims.

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