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| 1 | - | THE SENATE S.B. NO. 1128 THIRTY-THIRD LEGISLATURE, 2025 | |
| 1 | + | THE SENATE S.B. NO. 1128 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to insurance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: | |
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| 3 | 3 | THE SENATE S.B. NO. 1128 | |
| 4 | - | THIRTY-THIRD LEGISLATURE, 2025 | |
| 4 | + | THIRTY-THIRD LEGISLATURE, 2025 | |
| 5 | 5 | STATE OF HAWAII | |
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| 7 | 7 | THE SENATE | |
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| 9 | 9 | S.B. NO. | |
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| 11 | 11 | 1128 | |
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| 13 | 13 | THIRTY-THIRD LEGISLATURE, 2025 | |
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| 17 | 17 | STATE OF HAWAII | |
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| 31 | 31 | A BILL FOR AN ACT | |
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| 37 | 37 | relating to insurance. | |
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| 43 | 43 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: | |
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| 47 | - | SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows: "§431:10E- Claims for additional living expenses under homeowners insurance policies; states of emergency. (a) In the event of a loss under a homeowners insurance policy issued or renewed on or after January 1, 2026, for which the insured has made a claim for additional living expenses, the insurer shall provide the insured with a list of items that the insurer believes may be covered under the policy as additional living expenses. The list may include a statement that the list is not intended to include all items covered under the policy, but only those that are commonly claimed. Each insurer may use a list developed by the insurance commissioner. (b) If a covered loss occurs during a state of emergency declared pursuant to section 127A-14, coverage for additional living expenses shall be for a period of not less than twenty‑four months from the inception of the loss; provided that the coverage for additional living expenses shall be subject to other policy provisions. An insurer shall grant an extension of up to twelve additional months, for a total of thirty-six months, if an insured acts in good faith and is reasonably delayed due to a lack of necessary construction materials or available contractors to perform the necessary work. Additional six-month extensions shall be provided to policyholders for good cause. (c) No policy that provides coverage for additional living expenses shall limit the policyholder's right to recovery if the insured premises is rendered uninhabitable by a covered peril. An insurer may, in lieu of making living expense payments, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living | |
| 47 | + | SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows: "§431:10E- Claims for additional living expenses under homeowners insurance policies; states of emergency. (a) In the event of a loss under a homeowners insurance policy issued or renewed on or after January 1, 2026, for which the insured has made a claim for additional living expenses, the insurer shall provide the insured with a list of items that the insurer believes may be covered under the policy as additional living expenses. The list may include a statement that the list is not intended to include all items covered under the policy, but only those that are commonly claimed. Each insurer may use a list developed by the insurance commissioner. (b) If a covered loss occurs during a state of emergency declared pursuant to section 127A-14, coverage for additional living expenses shall be for a period of not less than twenty‑four months from the inception of the loss; provided that the coverage for additional living expenses shall be subject to other policy provisions. An insurer shall grant an extension of up to twelve additional months, for a total of thirty-six months, if an insured acts in good faith and is reasonably delayed due to a lack of necessary construction materials or available contractors to perform the necessary work. Additional six-month extensions shall be provided to policyholders for good cause. (c) No policy that provides coverage for additional living expenses shall limit the policyholder's right to recovery if the insured premises is rendered uninhabitable by a covered peril. An insurer may, in lieu of making living expense payments, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living expense coverage pursuant to this section shall not apply to any utility's public safety power shutdown event involving the deenergization of a portion of the electrical distribution or transmission system to reduce the risk of wildfire ignition. (d) For a loss that is otherwise not subject to subsections (b) or (c), in the event of a state of emergency declared pursuant to section 127A-14 that is related to a covered peril and accompanied by an order of civil authority restricting access to the applicable premises, additional living expenses coverage shall be provided for at least two weeks. Additional two-week extensions shall be provided to a policyholder for good cause; provided that each extension shall be subject to any other applicable policy provision." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ | |
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| 49 | 49 | SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows: | |
| 50 | 50 | ||
| 51 | 51 | "§431:10E- Claims for additional living expenses under homeowners insurance policies; states of emergency. (a) In the event of a loss under a homeowners insurance policy issued or renewed on or after January 1, 2026, for which the insured has made a claim for additional living expenses, the insurer shall provide the insured with a list of items that the insurer believes may be covered under the policy as additional living expenses. The list may include a statement that the list is not intended to include all items covered under the policy, but only those that are commonly claimed. Each insurer may use a list developed by the insurance commissioner. | |
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| 53 | 53 | (b) If a covered loss occurs during a state of emergency declared pursuant to section 127A-14, coverage for additional living expenses shall be for a period of not less than twenty‑four months from the inception of the loss; provided that the coverage for additional living expenses shall be subject to other policy provisions. An insurer shall grant an extension of up to twelve additional months, for a total of thirty-six months, if an insured acts in good faith and is reasonably delayed due to a lack of necessary construction materials or available contractors to perform the necessary work. Additional six-month extensions shall be provided to policyholders for good cause. | |
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| 55 | - | (c) No policy that provides coverage for additional living expenses shall limit the policyholder's right to recovery if the insured premises is rendered uninhabitable by a covered peril. An insurer may, in lieu of making living expense payments, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living | |
| 55 | + | (c) No policy that provides coverage for additional living expenses shall limit the policyholder's right to recovery if the insured premises is rendered uninhabitable by a covered peril. An insurer may, in lieu of making living expense payments, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living expense coverage pursuant to this section shall not apply to any utility's public safety power shutdown event involving the deenergization of a portion of the electrical distribution or transmission system to reduce the risk of wildfire ignition. | |
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| 57 | 57 | (d) For a loss that is otherwise not subject to subsections (b) or (c), in the event of a state of emergency declared pursuant to section 127A-14 that is related to a covered peril and accompanied by an order of civil authority restricting access to the applicable premises, additional living expenses coverage shall be provided for at least two weeks. Additional two-week extensions shall be provided to a policyholder for good cause; provided that each extension shall be subject to any other applicable policy provision." | |
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| 59 | 59 | SECTION 2. New statutory material is underscored. | |
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| 61 | - | SECTION 3. This Act shall take effect | |
| 61 | + | SECTION 3. This Act shall take effect upon its approval. | |
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| 63 | - | Report Title: Property Insurance; Claims for Additional Living Expenses; Homeowners Insurance Policies; States of Emergency Description: Establishes requirements for insurers relating to claims for additional living expenses under homeowners insurance policies, including situations where losses are incurred during a state of emergency. Effective 7/1/2050. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. | |
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| 65 | + | INTRODUCED BY: _____________________________ | |
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| 67 | + | INTRODUCED BY: | |
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| 69 | + | _____________________________ | |
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| 75 | + | Report Title: Property Insurance; Claims for Additional Living Expenses; Homeowners Insurance Policies; States of Emergency Description: Establishes requirements for insurers relating to claims for additional living expenses under homeowners insurance policies, including situations where losses are incurred during a state of emergency. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. | |
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| 71 | 83 | Report Title: | |
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| 73 | 85 | Property Insurance; Claims for Additional Living Expenses; Homeowners Insurance Policies; States of Emergency | |
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| 77 | 89 | Description: | |
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| 79 | - | Establishes requirements for insurers relating to claims for additional living expenses under homeowners insurance policies, including situations where losses are incurred during a state of emergency. | |
| 91 | + | Establishes requirements for insurers relating to claims for additional living expenses under homeowners insurance policies, including situations where losses are incurred during a state of emergency. | |
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| 87 | 99 | The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |