SMOOTHER ROAD AHEAD FOR PROPERTY INSURANCE MARKET

Governor Green signed Senate Bill 1044 into law on July 7, taking another step forward in stabilizing the state’s property insurance market amid escalating premiums and limited coverage options.

“The rising cost of insurance has become yet another unbearable burden for Hawai‘i and its residents,” said Governor Green. “This is one piece of the solution that helps prepare and protect us from future crises, which puts us in a better position than other states that have recently suffered from catastrophic events.”

SB 1044, now known as Act 296, reactivates the Hawai‘i Hurricane Relief Fund (HHRF) to provide insurance coverage in scenarios where the private market fails to do so. Applications are now being accepted by the HHRF for condominium and townhouse associations of apartment owners seeking to obtain hurricane commercial property insurance.

The measure also enhances the powers of the Hawai‘i Property Insurance Association to provide additional coverage options, establishes the Condominium Loan Program to help buildings remain insurable, and mandates the Insurance Commissioner to conduct a comprehensive study aimed at developing sustainable strategies for market stabilization.

“The HHRF board of directors worked tirelessly to get the program operational to bring additional coverage availability for the market. We anticipate this program can help every eligible association with a portion of their full hurricane coverage,” said Acting Insurance Commissioner Jerry Bump. “Also, from the launch of HHRF, we quickly saw pricing pressure and market competition significantly decrease the cost of coverage.”

“The condominium community will now benefit from much-needed premium relief. As we have already seen in some of the initial submissions, properties of all sizes have seen upwards of 70% savings on their hurricane insurance,” added Alex McLaury, commercial insurance agent at ACW Group.

More information about the Hawai‘i Hurricane Relief Fund, including frequently asked questions, the application, and other required forms visit https://hhrf.hawaii.gov.