Bill > SB2962

This bill aims to provide homeowners with greater flexibility in rebuilding or replacing their homes after a disaster, particularly in the context of a declared state of emergency. It prohibits homeowners insurance policies from denying payments for replacement costs, extended replacement costs, or building code upgrade costs solely because the homeowner chooses to rebuild at a different location or buy an existing home elsewhere. However, the total payout will not exceed what would have been paid if the home was rebuilt at its original location, and the value of the land itself is not included in this calculation. Additionally, if a homeowner experiences a total loss and their dwelling coverage limit is insufficient, the insurer must allow the homeowner to combine their dwelling and other structures coverage limits to fund the rebuilding or replacement, as long as the combined total does not exceed the policy's stated limits. Insurers are also required to notify policyholders of these rights following a declared state of emergency that results in a total loss to their property.

Business and Industry, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2962&year=2026