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Hurricane Lala rainfall sparks Hawaii flood and mudslide claims
Even without landfall, Lala’s rainfall up to 32 inches generated flash floods and mudslides that displaced more than 100 properties and left insurers facing multi-policyholder coverage gaps.
Hurricane Lala skirted Hawaii’s Big Island without making landfall, but heavy rainfall triggered flash floods and mudslides that swept more than 100 properties from their foundations, according to Insurance Business, citing Governor Josh Green. One person died in a vehicle accident tied to the storm, and power outages peaked with more than 200,000 households affected.
Insurance Business said the storm illustrates how Hawaii’s insurance structure can produce a fragmented claims picture because rainfall-driven landslide and mudflow damage often falls outside standard homeowners coverage. In that setup, homeowners may need to work across hurricane wind coverage, flood coverage, and standard property coverage, each with different carriers, triggers, deductibles, and claims processes.
The outlet traced the state’s unusual coverage landscape to Hurricane Iniki in September 1992, a category four storm that killed six people, injured around 100, and caused roughly $3 billion in damage after landfall on Kauai. It said insurer withdrawals after Iniki led Hawaii to set up the Hawaii Hurricane Relief Fund and contributed to a market where hurricane, flood, and standard property protections effectively operate as separate products.
Zephyr Insurance, a specialist carrier in the state, activated hurricane coverage for Big Island policyholders ahead of Lala’s approach and warned customers that standard homeowners policies exclude hurricane wind and flood damage. Insurance Business also noted that flood losses typically rely on the National Flood Insurance Program or private flood coverage, while vehicle damage generally requires separate comprehensive auto coverage.