The Hawaii Office of the Governor published an emergency proclamation to address the state’s worsening condominium insurance market.

The market has been in a crisis due to an increasing number of weather disasters and rising reinsurance costs. As a result, there are limited hurricane insurance options for condominium associations–there are currently only three insurers offering master policies to condo associations in the state.

The associations have been forced to rely on surplus lines insurers instead, which have much higher premiums and deductibles. Some associations have decided to underinsure their properties or carry no insurance at all, which causes mortgage lenders not to issue loans on individual units, resulting in units not being sold.