The weather phenomenon has caused chaos, with residents forced to evacuate as the storm wreaks their communities.
Home insurance for most US states includes cover for any hurricane damage, however, because of the frequency of hurricanes that hit Hawaii, insurance policies for the island often fail to cover storm protection.
Lynne McChristian, a consultant to the Insurance Information Institute, said: “Most people fail to read their insurance contract to understand what’s covered and what’s not, and then they’re surprised after an event when they discover they didn’t have the coverage.”
The insurance expert added even those who do have such policies can be at risk.
Hurricane policies tend not to cover flood damage and must be bought separately.
Explaining the importance of flood cover, she added: “Most people who live in areas where hurricanes are a threat are also at risk of flooding.”
Hurricane Lane has caused a vet amount of damage in Hawaii as Lane is causing flash floods.
On Thursday, nearly 20 inches of rain fell on the state, leaving cars and vehicles underwater.
The storm has weakened significantly through Friday to a Category 1 and according to the National Weather Service that rapid weakening is expected to continue over the next two days.
However, the National Oceanic and Atmospheric Administration has warned Islanders that despite the weakening, rainfall and strong gusty winds “remain a threat”.
As well as the flooding, homes in Hawaii are also at risk from a fire that began as the hurricane hit land.
A large brush fire has erupted in Lahaina, West Maui in the early hours of Friday morning with residents reporting the immediate intervention of the Maui Fire Department.
Residents in the area were forced to evacuate.
They said the fire was getting “dangerously close to homes” in the area.
Brock Long from the Federal Emergency Management Agency (FEMA) said: “There’s a lot of uncertainty.
“What is sure though is that Hawaii is going to be impacted by Hurricane Lane. The question is how bad.”