Bill > SB1128

This bill establishes new requirements for insurance companies regarding additional living expenses (ALE) coverage in homeowners insurance policies, particularly during states of emergency. Specifically, insurers must provide policyholders with a list of potentially covered ALE items when a claim is made. For losses occurring during a state of emergency, the bill mandates that ALE coverage must last at least 24 months, with potential extensions up to 36 months or longer if the policyholder experiences good faith delays in reconstruction due to material or contractor shortages. The bill prohibits insurers from limiting a policyholder's recovery if their home becomes uninhabitable due to a covered event, and allows insurers to offer alternative remedies to address uninhabitability. The law applies to policies issued or renewed after January 1, 2026, and provides additional protections for policyholders during emergencies, such as requiring at least two-week ALE coverage with potential extensions when civil authorities restrict access to premises. Notably, the bill explicitly states that ALE coverage does not apply to utility-related public safety power shutdowns intended to prevent wildfires. The law is set to take effect on July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1128&year=2026