Volcano Eruptions Spark Eruption of Lawsuits on the Big Island

In May of 2018, the Kilauea Volcano erupted sending molten lava soaring over 60 meters into the air. Over time, the lava spread to cover over 12 square miles on Hawaii's Big Island. Over 1000 homes and other buildings were destroyed by the flowing lava. Hundreds of earthquakes and tremors rocked the island during the volcano's eruption. Soon after the initial eruption, Hawaii's insurance Commissioner made it clear that in Hawaii, if a home catches fire and is destroyed due to exposure to molten rock it is considered fire damage which is covered under a typical homeowners insurance policy. That being said, due to the increased risk of volcano or lava flow damage on the island, insurance policies are written so that there is generally no coverage provided for damage caused by a volcano or by lava flow. Losses caused by an earthquake, land shock waves or tremors are also not covered under a homeowners policy, so if the home damage is caused by an earthquake or tremor there will not typically be coverage. If debris can be traced to a covered peril, debris removal coverage will provide funds to dispose of damaged property and toxic volcanic ash. If an insurer is willing to take on this risk, the insured may have the opportunity to purchase a policy that covers lava flow.