Lava Zones on the Big Island: What Buyers Should Know

What if a simple number shaped your loan options, insurance choices, and closing timeline on the Big Island? If you have been eyeing a home in Kailua-Kona or land elsewhere on Hawai‘i Island, you have likely heard about lava hazard zones. It can feel confusing at first, especially if you are buying from the mainland. The good news is you can navigate lava zones with clear steps and trusted sources.

In this guide, you will learn what the zones mean, how they influence financing and insurance, and what due diligence looks like in Kona, Hilo, and Puna. You will also get a practical checklist you can use before you write an offer. Let’s dive in.

Lava hazard zones explained

Lava hazard zones are a 1–9 system used on the Island of Hawai‘i to describe long-term lava flow risk based on eruption history and rift locations. Zone 1 represents the highest relative hazard near volcano summits and rift zones. Zones 9 represents the lowest relative hazard in areas with little or no known historic lava coverage.

These zones are planning tools, not predictions of imminent activity. They are best used to compare relative risk between areas and to guide conversations with your lender and insurer.

• Zone 1: Highest relative hazard near rift zones and summits.
• Zones 2–3: Significant relative hazard in areas near active rifts and younger flow fields.
• Zones 4–9: Progressively lower historical lava inundation frequency.

You can review the official sources at the USGS lava flow hazard zones map and the Hawaii County Planning online maps.

How to find a property’s zone

1. Start with the USGS/HVO hazard zones map for the Island of Hawai‘i.
2. Cross-check using the Hawaii County Planning Department map resources.
3. Verify the exact parcel on a map that lets you zoom to the property’s location. Zones are broad categories, so parcel-level confirmation matters.
4. Ask the seller and your agent for any disclosures about past volcanic activity affecting the property or nearby areas.

How lava zones affect financing

Lenders look at collateral risk, including insurability, marketability, access, and the property’s exposure to natural hazards. If a property cannot be insured or sits in a high-hazard zone with recent activity, underwriting can be more cautious.

The 2018 Kīlauea eruption in Puna is a real-world example. It disrupted nearby communities and influenced lending and insurance practices in affected areas. You can see scientific context in the USGS summary of the 2018 eruption.

Conventional loans

Conforming lenders will check insurability and resale considerations. In Lava Hazard Zones 1 and sometimes 2, lenders may add conditions, require larger down payments, or decline certain properties, especially vacant land or new construction. Owner-occupied homes can still qualify, but you should expect to provide a hazard insurance binder before closing.

FHA and VA loans

FHA and VA programs typically require that the property be insurable and meet habitability standards. If insurers are unwilling to write coverage, underwriting can be affected. Policies and interpretations vary, so speak with a loan officer who regularly finances Big Island properties. Familiarize yourself with general principles in the HUD Single Family Housing Policy Handbook and confirm specific requirements with your lender.

Jumbo and portfolio loans

Portfolio lenders may be more flexible on unique properties or higher hazard exposures, but they often require larger down payments or charge higher rates to offset risk. This can be a path forward for properties in Zones 1–2.

Cash purchases

Cash buyers are not constrained by underwriting. In some high-hazard scenarios, such as certain vacant lots in Puna, cash is the most practical path to closing.

Practical tips for financing

• Disclose the lava zone early during pre-approval.
• Ask lenders direct questions: Will you finance in this zone? Do you require a hazard insurance binder? What down payment applies?
• Work with a mortgage professional who actively finances properties on Hawai‘i Island.

Insurance basics in lava country

Home insurance practices vary by carrier and by zone. The key is to secure a written quote or binder early and to ask detailed questions about volcanic coverage.

What to ask your insurer

• Lava flow and volcanic ash: Are these perils covered, excluded, or limited by sub-limits?
• Additional Living Expense (loss of use): Is it included if the loss is related to a volcanic event and otherwise a covered peril?
• Special endorsements: Will you need extra endorsements for ash cleanup or filtration systems?

Common realities in higher zones

• Some carriers decline new policies or restrict coverage in Zones 1–2. Others may write coverage but at higher premiums or with exclusions.
• Insurers generally cover structures, not raw land, for lava-related loss.
• Availability and pricing can change after major events, so always confirm in writing.

For consumer guidance and a list of licensed carriers, visit the Hawaii DCCA Insurance Division.

Smart due diligence and timeline

Give yourself time to confirm insurability and underwriting requirements. A little preparation early can save weeks later.

Pre-offer checks

• Confirm the property’s lava zone on both the USGS/HVO map and the Hawaii County Planning map.
• Request seller disclosures related to volcanic activity or prior damage.
• Review recent photos, utilities, and road access details.

Order of operations after going under contract

1. Pre-approval tune-up: Tell the lender the zone number and get conditional eligibility documented.
2. Insurance quotes: Contact at least two carriers for written quotes that address lava and ash, plus loss-of-use.
3. Inspection and appraisal: Expect the appraiser to comment on location. For land or unique terrain, consider a geotechnical opinion.
4. Title review: Check for recorded notices or conditions tied to hazard zones.
5. Build in time: In higher-hazard cases, add 1–3 weeks to a normal closing to allow for insurer binders and underwriter questions.

Helpful professionals

• Local real estate attorney for contract language and disclosures
• Insurance agent experienced with Hawai‘i Island hazards
• Mortgage broker or direct lender with Big Island experience
• Geologist or civil engineer for vacant land or where past flows are evident
• County planning and building departments for permit and infrastructure history

Buyer protections to include

• Financing and insurability contingencies
• Longer inspection and contingency periods for higher-hazard properties
• Clear seller disclosures about known volcanic-related issues or repairs

What to expect in Kailua-Kona

Much of the Kona corridor sits in lower lava hazard zones compared with the East Rift and Puna. Many neighborhoods fall in Zones 4–6 or lower, which usually means fewer insurance and financing complications. That said, always verify the parcel’s exact zone and secure an insurance binder early.

If you are buying near older flow fields or on undeveloped hillsides, take extra care to confirm utilities, access, and carrier appetite. For most Kona condos and single-family homes, lender and insurer availability is often comparable to other coastal markets, provided you check the zone and coverage up front.

Hilo and Puna examples

• Hilo and nearby areas often show mixed zones. If you are near older flows or rift features, expect your lender to ask for an insurance binder and your insurer to specify how ash is treated.
• Puna includes substantial areas in Zones 1 and 2 and was significantly affected in 2018. Vacant land or certain parcels here can be challenging for standard financing. Buyers commonly use cash or specialized portfolio products and should start insurance conversations early.

Sample buyer scenarios

• Kona condo in a lower zone: You secure a standard conforming loan after your lender confirms insurability. Your insurer issues a hazard binder before closing and you close on time.
• Puna vacant lot in Zone 1: Conventional lenders decline due to lack of insurability for planned improvements. You either buy with cash or use a portfolio loan with a larger down payment and higher rate.
• Hilo single-family near older flows: Your lender issues conditional approval and requests proof of a policy that includes ash coverage. Closing is delayed a short time while the insurer issues the binder.

Key takeaways for buyers

• Always verify the lava zone on both USGS/HVO and Hawaii County Planning maps.
• The biggest impacts are on insurance availability, loan options, closing timelines, and long-term resale.
• Start lender and insurance conversations early, and write clear insurability contingencies into your contract when appropriate.
• For Zones 1–3 or any parcel with a history of lava activity, consult experienced local professionals and consider extra due diligence.

Ready to talk through a property in Kailua-Kona, Hilo, or Puna? You can lean on a local, construction-savvy team that knows how to sequence lender, insurer, and county steps so you close with confidence.

If you want tailored guidance for your situation, reach out to Hawai’i Estates. We will help you check the zone, confirm insurability, and map a clean timeline from offer to closing. Get your Instant Home Valuation.

FAQs

What are lava hazard zones on the Big Island?

• They are a 1–9 scale used by USGS/HVO and Hawaii County to compare long-term lava flow risk, with Zone 1 highest and Zone 9 lowest.

How do lava zones affect home loans in Hawaii County?

• Lenders focus on insurability and collateral risk. Higher zones, especially 1–2, can mean stricter underwriting, larger down payments, or portfolio loans.

Can I use FHA or VA for a home in a lava zone?

• Possibly, if the property is insurable and habitable. See the HUD handbook and confirm details with a lender experienced on Hawai‘i Island.

How do I check a Kailua-Kona home’s lava zone?

• Verify the parcel on the USGS/HVO hazard zones map and cross-check with Hawaii County Planning maps.

Is lava and ash damage covered by homeowners insurance?

• Coverage varies by carrier and policy. Get written quotes that specify lava flow, ash, and loss-of-use, and consult the Hawaii DCCA Insurance Division for consumer guidance.

What changed after the 2018 Kīlauea eruption in Puna?

• Lenders and insurers reassessed exposures in affected areas, which led to tighter underwriting and evolving carrier appetites. See the USGS 2018 eruption summary for context.