The enactment of SB988 will amend Section 514B-143 of the Hawaii Revised Statutes, where it stipulates that condominium associations must maintain various types of insurance, now including earthquake insurance. The law mandates that this insurance covers not just the common areas but also individual units and personal items within those units. This insurance requirement could lead to increased costs for condominium associations and potentially affect the affordability of living in such communities due to higher insurance premiums.
Summary
SB988 proposes an amendment to the Hawaii Revised Statutes requiring condominium associations to purchase earthquake insurance for their entire buildings. The bill responds to the significant risk of earthquakes in Hawaii, with reports indicating that the state experiences thousands of seismic activities annually. Given this context, the bill aims to protect the financial interests of condominium owners by ensuring that all units are covered under comprehensive insurance against potential earthquake damage.
Contention
Notable points of contention may arise regarding the financial implications for condominium owners and associations. Critics could argue that mandatory earthquake insurance might impose additional financial burdens on property owners, especially in an already expensive real estate market. Conversely, proponents of the bill may assert that these protections are essential to safeguard homeowners' investments against significant geological risks in the region. This legislation may spur debates about the adequacy of disaster preparedness in Hawaii and the role of insurers in providing comprehensive coverage.
Urging The Members Of Hawaii's Congressional Delegation To Introduce Legislation To Expand The National Flood Insurance Program To Include Lava And Earthquake Insurance.
Urging The Members Of Hawaii's Congressional Delegation To Introduce Legislation To Expand The National Flood Insurance Program To Include Lava And Earthquake Insurance.