| 43 | | - | WHEREAS, the National Flood Insurance Program is a federal program established by the National Flood Insurance Act of 1968 that enables certain property owners to purchase flood insurance as protection against flood losses, while requiring state and local governments to enforce floodplain management laws to reduce future flood damages; and WHEREAS, the National Insurance Flood Program has two main goals: (1) Provide access to primary flood insurance, thereby allowing for the transfer of some of the financial risk of property owners to the federal government; and (2) Mitigate and reduce flood risks through the development and implementation of floodplain management standards; and WHEREAS, as a public insurance program, the goals of the National Flood Insurance Program encompass social goals, which differ from private sector insurance companies, including providing flood insurance in flood-prone areas to property owners who otherwise would not be able to obtain it and reducing the amount of federal expenditures for disaster assistance after floods; and WHEREAS, residents in Puna on Hawaii Island, particularly in lava zones 1 and 2, face similar insurance coverage challenges as those faced by people who have property in flood-prone areas; and WHEREAS, along with facing threats from lava flows, residents of Hawaii are also required to pay additional, and often exorbitant insurance coverage costs for many insurance companies to cover damages from earthquakes; and WHEREAS, in July 2023, Universal Property & Casualty announced it was leaving Hawaii's homeowners, condominium, and renters insurance market, a decision that affected about fifteen hundred policies, the majority of which covered properties on Hawaii Island, including nine hundred policies for properties located in lava zones 1 and 2; and WHEREAS, as a result, the only insurance available to many Puna residents is from the Hawaii Property Insurance Association (HPIA), the State's property insurance safety net that offers basic property insurance coverage for residents who have been denied coverage in the private market at least twice; and WHEREAS, however, the HPIA generally charges higher rates for less coverage than insurance companies in the private market and some Puna residents who were former Universal Property & Casualty customers are finding HPIA's rates to be four to ten percent higher; and WHEREAS, residents in lava and earthquake-prone zones are in dire need of more insurance options to ensure the protection of all their assets and mitigate the financial burden of higher insurance premiums; and WHEREAS, expanding the National Flood Insurance Program to include coverage for lava and earthquake insurance could help address the current property insurance crisis in certain areas in the State and help minimize the economic and social hardships faced by many residents affected by damage caused by earthquakes and lava flow; now, therefore, BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the members of Hawaii's congressional delegation are urged to introduce legislation to expand the National Flood Insurance Program to include lava and earthquake insurance; and BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to each member of Hawaii's congressional delegation. Report Title: Lava Insurance; National Flood Insurance Program; Expansion |
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| 45 | + | WHEREAS, the National Flood Insurance Program is a federal program established by the National Flood Insurance Act of 1968 that enables certain property owners to purchase flood insurance as protection against flood losses, while requiring state and local governments to enforce floodplain management laws to reduce future flood damages; and WHEREAS, the National Insurance Flood Program has two main goals: (1) Provide access to primary flood insurance, thereby allowing for the transfer of some of the financial risk of property owners to the federal government; and (2) Mitigate and reduce flood risks through the development and implementation of floodplain management standards; and WHEREAS, as a public insurance program, the goals of the National Flood Insurance Program encompass social goals, which differ from private sector insurance companies, including providing flood insurance in flood-prone areas to property owners who otherwise would not be able to obtain it and reducing the amount of federal expenditures for disaster assistance after floods; and WHEREAS, residents in Puna on Hawaii Island, particularly in lava zones 1 and 2, face similar insurance coverage challenges as those faced by people who have property in flood-prone areas; and WHEREAS, in July 2023, Universal Property & Casualty announced it was leaving Hawaii's homeowners, condominium, and renters insurance market, a decision that affected about fifteen hundred policies, the majority of which covered properties on Hawaii Island, including nine hundred policies for properties located in lava zones 1 and 2; and WHEREAS, as a result, the only insurance available to many Puna residents is from the Hawaii Property Insurance Association (HPIA), the State's property insurance safety net that offers basic property insurance coverage for residents who have been denied coverage in the private market at least twice; and WHEREAS, however, the HPIA generally charges higher rates for less coverage than insurance companies in the private market and some Puna residents who were former Universal Property & Casualty customers are finding HPIA's rates to be four to ten percent higher; and WHEREAS, residents in lava zones are in dire need of more insurance options to ensure the protection of all their assets and mitigate the financial burden of higher insurance premiums; and WHEREAS, expanding the National Flood Insurance Program to include coverage for lava insurance could help address the current property insurance crisis in certain areas in the State and help minimize the economic and social hardships faced by many residents affected by damage caused by lava flow; now, therefore, BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the members of Hawaii's congressional delegation are urged to introduce legislation to expand the National Flood Insurance Program to include lava insurance; and BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to each member of Hawaii's congressional delegation. OFFERED BY: _____________________________ Report Title: Lava Insurance; National Flood Insurance Program; Expansion |
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