A year after Hurricane Katrina ravaged the Gulf Coast the effects of the storm are still being felt, even in Hawai'i.

Local residents trying to obtain hurricane coverage for their homes are finding it's more difficult to find and costs more than a year ago, in part because of the devastation and losses wrought by the storm and others.

The insurance has become more difficult to find since the start of the year, with insurers being force to cut back on new hurricane policies because of rising reinsurance costs and new estimates for potential damage arising from wind storms. The tally of insured losses to homes, vehicles and businesses damaged in 2005 by hurricanes Katrina, Rita, Wilma and Dennis are estimated at $57 billion, according to the Insurance Information Institute.

Zephyr Insurance Co., one of the state's largest hurricane insurers, cut back on policies covering homes with so-called "single-wall construction," a technique once popular in the state. Another one of the state's top five hurricane insurers, Hawaiian Insurance & Guaranty, is still writing policies though some homeowners are avoiding the company because of financial turmoil.

The insurance is "a little more expensive and harder to find," said Steve Tabussi, vice president of First Insurance Co. "It's just not all over the place."

First Insurance in June cut back on new hurricane policies, offering it only as part of a homeowners, automobile and liability package available to customers. It stopped marketing new hurricane policies to homeowners looking to add just windstorm coverage.

"We hope to have some solutions a little down the road, but at this time our capacity is constrained so we can't offer it across the board," Tabussi said.

State Farm Insurance Co., another large hurricane insurer, is also being cautious about how many new policies it issues.

"We have to be very mindful that our exposure is one we can safely insure," said spokeswoman Carolyn Fujioka. "We have to be there to pay claims."

Katrina's effects were felt indirectly in Hawai'i, as it and other storms changed some of the ways insurance companies look at storm damage. Computer models used in calculating potential damage now give higher estimates and rates from reinsurers, or firms that provide insurance for insurance companies, have increased.

"After the storms of last year a number of things happened," said state Insurance Commissioner J.P. Schmidt. "Reinsurance companies raised their prices, the companies that do computer models to try and predict the amount of damage storms might do readjusted their models.

"And A.M. Best ratings service made some new requirements of insurance companies that have catastrophic exposure, requiring additional capital be set aside."

Katrina also had an effect on Vesta Insurance Co., the former parent company of Hawaiian Insurance & Guaranty (HIG). Large insured losses from hurricanes cut into Vesta's finances and were a factor in the company's bankruptcy.

Schmidt took over HIG from Vesta in late June and is negotiating a sale of the company. If unsuccessful HIG will be dissolved and its hurricane policy holders will have to look elsewhere for coverage.

But he said Hawai'i remains better off than Gulf Coast states where some homeowners are being forced to seek coverage from government-backed "insurers of last resort." He said Florida's legislature recently had to appropriate almost $1 billion because of losses at the state hurricane fund.

He said people, even those with single-wall construction, can find coverage in the private market, though it may be costly. Insurers have said some of the hurricane coverage increase is attributable to higher prices for construction materials.

Zephyr earlier this summer filed to hike rates 10 percent. State Farm is raising its homeowners and hurricane coverage by a combined average of 18.1 percent.

Schmidt acknowledged that coverage prices are going up.

"But I believe the average premium for hurricane in Hawai'i is about 26 cents per $100 of value, whereas Florida is $1.77 per $100 of value."

The state also has worked to bring in new hurricane insurers, including ICAT Specialty Insurance Co., Dongbu Insurance Co. and coverage through the American Automobile Association.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.