On the Big Island of Hawaii the volcanic activity has led to the creation of designated lava zones, which categorize areas based on their susceptibility to volcanic activity and lava flows. These lava zones are important considerations when it comes to real estate transactions, particularly in terms of underwriting for mortgages and insurance.

Lava zones range from Zone 1, which is considered the most hazardous, to Zone 9, which has the lowest risk of volcanic activity. Zones 1 and 2 are typically the areas most affected by recent volcanic flows, while Zones 3 through 9 have progressively lower risks.

When it comes to obtaining a mortgage for a property located in a lava zone, lenders take into account the potential risks associated with volcanic activity. Depending on the specific lava zone, lenders may have stricter underwriting requirements or may choose not to provide financing altogether. This is because properties in higher-risk lava zones may pose greater challenges in terms of long-term stability and potential damage due to lava flows.

Similarly, insurance companies also consider lava zones when assessing the insurability of properties. Properties in high-risk lava zones may have limited insurance options or may require specialized coverage. Insurance premiums for properties located in lava zones are typically higher, as they reflect the increased risk associated with potential volcanic activity and resulting damage.

It's crucial for homebuyers and property owners to be aware of the lava zone designation for their area and understand its implications. Consulting with experienced professionals, such as lenders, insurance agents, and local experts, can provide valuable insights and help navigate the complexities associated with lava zones.

When considering real estate in lava zones, it's important to thoroughly evaluate the potential risks, understand the insurance options available, and factor in any additional costs or restrictions associated with the specific lava zone designation. By doing so, you can make informed decisions and ensure that your investment aligns with your risk tolerance and financial goals.

A good rule of thumb is that if you are going to buy a home or land to put a structure on it, you’ll want to ensure it is on Lava Zone 3 or more.

Here’s a general Map of Big Island and the Major Lava Zone Designations.

Here is a link to a Google Earth DMZ that shows specific Lava Zones when opened in Google Earth.