Bill > SB2966

This bill requires property insurance companies in Hawaii to be more proactive and transparent with policyholders who experience a total loss of their property, meaning their dwelling or structure is destroyed and must be removed and rebuilt. After such a loss, insurers must automatically refund any "unearned premium," which is the portion of the premium paid for coverage on property that no longer exists, within thirty days without the policyholder needing to request it. For subsequent policy terms, insurers must adjust premiums and coverage to reflect the absence of the dwelling, structure, or contents, and they must make "liability coverage" available, which covers risks on the property even without buildings. Once rebuilding begins, insurers must offer "builder's risk coverage," which covers the reconstruction process, or inform the policyholder to seek it elsewhere. Additionally, within thirty days of a total loss, insurers must provide clear, written notice to policyholders explaining their rights to refunds and coverage adjustments, and outlining the need for liability and builder's risk coverage.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2966&year=2026