Bill > SB842

This bill addresses the challenges faced by condominium unit owners in Hawaii regarding property insurance by requiring the Insurance Commissioner to develop comprehensive standards for alternative insurance models. Specifically, the bill tasks the Commissioner with creating standards for self-insurance and mutual insurance options for condominium associations and developers, while also exploring innovative approaches like guaranteed buyback programs and investment-based protection funds. The proposed alternative model includes a potential mechanism where unit owners would deposit extra monthly funds into an interest-accumulating account that could be used for major repairs, emergency situations, or future property down payments. The Insurance Commissioner must ensure that these new insurance standards comply with federal mortgage lending requirements and submit a detailed report with findings and recommendations to the legislature by twenty days before the 2026 regular session. The bill acknowledges the extreme insurance challenges faced by condo owners, noting that insurance rates have increased by over 1,300 percent in a single year, and aims to provide more sustainable and affordable insurance solutions for condominium owners in Hawaii.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=842&year=2026