Bill > SB1141

This bill establishes new requirements for homeowners insurance policies in Hawaii, specifically focusing on protections for owner-occupied residences during catastrophic disasters. The bill defines key terms like "catastrophic disaster" (a state of emergency declared by the governor) and "owner-occupied residence" (a primarily owner-used property), and mandates that insurers provide more comprehensive coverage and support during total loss scenarios. Specifically, insurers must allow policyholders at least 36 months to submit replacement cost receipts, with options to extend this period by six months twice if encountering unavoidable delays. The bill requires additional living expense coverage for at least 24 months, with similar extension possibilities, and mandates that insurers pay for loss of use within 20 days of receiving documentation. Insurers must also provide flexible options for replacing or relocating properties, including allowing policyholders to rebuild at a new location or purchase an existing residence, and must offer at least 65% of contents coverage without requiring an immediate detailed inventory. Furthermore, the bill requires insurers to provide clear communication channels, status reports, and transparent methodologies for calculating depreciation. The legislation will apply to all homeowners insurance policies issued or renewed after December 31, 2025, and includes an appropriation for implementation, with an effective date of July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1141&year=2026