Hawaii House Bill HCR73

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 potential introduction of lava insurance under the NFIP could significantly impact state laws pertaining to property insurance. By expanding coverage options, residents in high-risk lava zones may gain access to more affordable insurance solutions which could alleviate the financial burden currently imposed by skyrocketing rates from other insurers. This move is particularly pertinent given the recent exit of Universal Property & Casualty from the Hawaiian market, which has left many homeowners in dire need of affordable coverage options.

Summary

HCR73 is a resolution proposed in the State of Hawaii urging Congress to expand the National Flood Insurance Program (NFIP) to include coverage for lava damage. This bill recognizes the unique insurance challenges faced by property owners in areas prone to lava flows, particularly in Puna on Hawaii Island, which is categorized into lava zones 1 and 2. The intent of the resolution is to provide a safety net for these residents, similar to that which flood-prone areas receive under the NFIP, thereby acknowledging the similarities in risk exposure between flooding and lava flow incidents.

Contention

One of the notable points of contention surrounding HCR73 revolves around the financial implications for the NFIP and the federal government. While supporters argue for the necessity of providing additional insurance options for residents affected by lava flows, critics may express concerns about the sustainability and financial viability of expanding the flood insurance program to include such unique risks. The bill's advocates assert that it could prevent severe economic hardships faced by residents after damage from lava flow, while opponents may highlight the potential strain on federal resources that this expansion might entail.