Bill > HB1057

This bill aims to stabilize Hawaii's property insurance market by expanding the powers of the Hawaii Property Insurance Association (HPIA) and Hawaii Hurricane Relief Fund (HHRF) to help condominium associations and potentially other property owners obtain insurance coverage when standard insurers are unwilling to provide it. The legislation creates a five-year stopgap measure to address the shrinking insurance market, particularly for condominiums, which have faced rapidly increasing premiums, higher deductibles, and reduced coverage options. Key provisions include authorizing the HPIA to provide insurance for condominium buildings and potentially other property types experiencing market failures, establishing new funding mechanisms like a temporary recording fee and insurer assessments, and requiring the insurance commissioner to conduct a study to develop long-term solutions. The bill is motivated by recent challenges such as the Lahaina wildfire, increasing reinsurance costs, and the potential impact on mortgage lending and property values if insurance becomes unavailable. To fund this effort, the bill appropriates $50 million to the HPIA for startup costs and provides $100,000 for the required market study, with the goal of eventually returning the market to standard insurers once risks become more manageable.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1057&year=2026