The Hawaii Department of Commerce & Consumer Affairs published a press release announcing a major step toward stabilizing the property insurance market with the signing of Senate Bill 1044 (Act 296). The bill aims to counter the increasing premiums and limited coverage availability caused by the increase in natural disasters.
The bill establishes the Condominium Loan Program to help keep buildings insurable. The program allows condos to make critical repairs, which in turn would lower their premiums and raise unit values. The program will benefit the average condominium building and not luxury buildings.
The bill also requires the Insurance Commissioner to conduct a comprehensive study to find long-term solutions for market stabilization.
Finally, the bill reactivates the Hawaii Hurricane Relief Fund (HHRF) to allow it to provide insurance for situations where the voluntary market doesn’t. It was originally founded to fill the gap in property coverage after many insurers withdrew from the market. More information about HHRF can be found here: Hawaii Hurricane Relief Fund Accepting Applications.
The press release can be found here.