Bill > HB885

This bill establishes a new insurance discount program for condominium associations in Hawaii that incentivizes property risk mitigation. The program requires property insurers to offer premium discounts to condominium associations that implement specific upgrades or actions to reduce their risk profile, such as clearing vegetation, using noncombustible materials near buildings, installing fire-resistant roofs and vents, creating defensible spaces, implementing annual maintenance plans for various building systems, and making flood and seismic improvements. The insurance commissioner will be responsible for adopting rules that specify the amount of discount for each type of upgrade, the requirements associations must meet to qualify, and potentially identify additional risk reduction actions. The bill was motivated by decreasing availability and increasing costs of condominium property insurance, drawing inspiration from California's wildfire resilience insurance discount program. By encouraging proactive risk mitigation, the legislation aims to help condominium associations reduce potential damage, lower insurance claims, and provide financial relief to residents. The program is set to take effect on July 1, 2025, and will apply to property insurers providing coverage to condominium associations in Hawaii.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=885&year=2026