Bill > HB590

This bill addresses insurance challenges for Hawaii condominium properties by establishing new requirements for property insurers. The legislation mandates that insurers offer discounts to condominium associations that implement various risk mitigation strategies, including disaster-resilience upgrades like impact-resistant windows, flood barriers, fire-resistant materials, and sprinkler systems, as well as planned maintenance improvements and smart building technologies. Property insurers must provide discounts for associations that develop comprehensive disaster response plans and must base premium increases on actuarial justifications that reflect actual risk reduction. The bill limits premium increases for condominiums that have completed fire and life safety evaluations to no more than 10% per year unless external factors can be demonstrated. Additionally, insurers are required to file annual reports with the insurance commissioner detailing and justifying any premium increases, which will be made publicly available. Insurers that violate these provisions may face fines up to $10,000 per violation and potential license suspension, with the goal of creating more transparent and fair insurance practices for condominium properties in Hawaii. The legislation stems from recent challenges in the insurance market, including shrinking availability of policies and exponentially increasing costs, particularly in the wake of events like the Maui wildfires.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=590&year=2026