Requesting The Insurance Commissioner To Conduct A Study Of Alternative Insurance Models That May Provide Viable Solutions For Condominium Associations And Condominium Unit Owners In The State.
Impact
The identified issues in the resolution highlight that condominium associations in Hawaii have seen staggering premium increases ranging between 300% to 600% within a year. Such hikes have compelled many associations to consider reducing their coverage to below the required 100%, jeopardizing their financial viability and placing them at risk, particularly during disasters. The study mandated by HCR85 is intended to develop comprehensive standards for these associations and may facilitate access to appropriate insurance that meets state requirements.
Summary
HCR85 is a House Concurrent Resolution from the State of Hawaii that requests the Insurance Commissioner to conduct a study on alternative insurance models that could provide feasible solutions for condominium associations and unit owners. This resolution arises amidst significant increases in insurance premiums for hurricane and homeowner policies, particularly after the Maui wildfires in 2023, which have led to alarming affordability issues for condominium associations statewide. With the current insurance market being strained, the objective of HCR85 is to explore innovative approaches to insurance that could alleviate the financial burdens faced by these entities.
Contention
The resolution points out that current insurance companies offering condominium and hurricane policies are limited, with only four firms reliably providing coverage. Moreover, mortgage lenders require full coverage, and failure to maintain it can have severe repercussions such as blacklisting from lending opportunities. As such, findings from the proposed study could lead to recommendations for implementing alternative models like mutual insurance and building life insurance, which could potentially transform the insurance landscape for condominium associations in Hawaii, addressing both the struggle for adequate coverage and wildfire-related risks.
Same As
Requesting The Insurance Commissioner To Conduct A Study Of Alternative Insurance Models That May Provide Viable Solutions For Condominium Associations And Condominium Unit Owners In The State.
Requesting That The Insurance Division Of The Department Of Commerce And Consumer Affairs Conduct A Study Analyzing Whether Implementation In This State Of Laws Similar To Massachusetts' Captive Insurance Laws Would Address This State's Residential Condominium Property Insurance Needs.
Requesting The Insurance Commissioner To Conduct A Study Of Alternative Insurance Models That May Provide Viable Solutions For Condominium Associations And Condominium Unit Owners In The State.