Requesting Homeowners Insurers To Establish A Loss-control Program Aimed At Reducing The Risk Of Loss Or Mitigating Damage To Insured Property Caused By The Peril Of Fire.
The resolution points out that Hawaii has historically had high homeowners' insurance markups and that many residents did not have insurance during the Maui wildfires, likely due to these costs. By establishing a structured program that rewards homeowners who take preventive measures, the resolution seeks to create a more insurance-friendly environment. If successful, this initiative could result in more homeowners being able to afford insurance by lowering their premiums, which could increase overall insurance coverage in the state and potentially enhance community resilience to future disasters.
Senate Resolution 16 (SR16) aims to address issues with homeowners insurance in Hawaii, particularly in light of the devastating wildfires in Maui in August 2023. The resolution requests that homeowners insurers implement a loss-control program designed to mitigate damage due to fire risks, potentially influenced by examples like the 'Miracle House' in Lahaina, which survived the fires due to effective loss-control measures. The bill emphasizes the importance of reducing fire-related risks through specific actions that homeowners can take, such as removing flammable materials from around properties and using non-flammable materials in construction.
While the resolution outlines a beneficial program for policyholders, potential points of contention may arise regarding the specific rules and standards set by the Insurance Commissioner to determine qualifying loss-control measures. Homeowners may have differing opinions on the feasibility of implementing all suggested measures, particularly in diverse property environments across the state. Furthermore, some insurance companies may resist changes to their existing pricing structures. As such, the resolution's implementation will likely need careful oversight to balance insurer interests with homeowner needs.