The Hawaii Legislature passed Senate Bill 1044, which reactivates the Hawaii Hurricane Relief Fund and expands the authority of the Hawaii Property Insurance Association (HPIA).
The bill is pending the signature of Governor Josh Green, who previously supported related property insurance reforms.
SB 1044 permits the HPIA to issue policies for specific properties deemed unable to obtain coverage, based on assessments by either the association or the insurance commissioner.
This authority applies only for a temporary period of up to five years. The bill also directs the insurance commissioner to evaluate and propose long-term solutions.
The legislation reestablishes the Hawaii Hurricane Relief Fund, allowing it to provide coverage for condominiums.
Under prior law, the fund received revenue from a mortgage recording fee, which lawmakers now describe as regressive, as it imposed higher fees on buyers with larger financed portions of their purchases.
SB 1044 replaces this with a flat per-document fee. This fee structure will be temporary and the fund’s board has discretion to determine when to end it.
Governor Green is expected to approve SB 1044. In August 2024, he signed a proclamation backing expanded coverage capabilities for the hurricane fund and insurer of last resort, specifically targeting the condominium market.
While SB 1044 awaits final approval, Governor Green signed SB 752 into law. This law introduces revised cancellation notice rules for residential property insurance, including multifamily dwellings.
Insurers must now provide at least 20 days’ written notice before canceling a policy. Cancellations due to nonpayment remain subject to a 10-day notification period, consistent with previous rules.
