Hawaii House Bill HR58

Hawaii 2024 Regular Session

• Introduced: 3/6/24
• Refer: 3/8/24

Caption

Urging The Members Of Hawaii's Congressional Delegation To Introduce Legislation To Expand The National Flood Insurance Program To Include Lava Insurance.

Impact

The current insurance landscape in Hawaii presents significant difficulties for residents, especially those in lava zones 1 and 2, where flooding and lava damage is commonplace. The resolution points out that Universal Property & Casualty's exit from the market has left many residents with few alternatives, prompting reliance on the Hawaii Property Insurance Association (HPIA), which offers insurance at higher rates and with less coverage than previously available. Expanding the NFIP to include lava insurance may provide crucial relief to affected residents, potentially allowing them to secure more affordable and comprehensive policies.

Summary

House Resolution 58 (HR58) urges Hawaii's congressional delegation to introduce legislation that would expand the National Flood Insurance Program (NFIP) to include lava insurance. The resolution outlines the necessity for such legislation, particularly due to the challenges faced by property owners in Puna, Hawaii, who reside in areas vulnerable to lava flow. With recent withdrawals of private insurers from the market, residents have limited options for property coverage, emphasizing the need for federal support in guaranteeing their financial security against lava-related damages.

Contention

Proponents of HR58 argue that expanding the NFIP is imperative to mitigate the financial hardships caused by the lack of coverage options following the departure of private insurers. Critics may express concerns about federal involvement in state-specific issues or the long-term sustainability of such a program. Some local stakeholders may worry about the implications for state regulations and how this federal support might interact with local governance on insurance matters. However, the resolution primarily focuses on addressing immediate needs for insurance protection and economic stability for residents in Hawaii's vulnerable lava zones.