Hawaii Senate Bill SR106

Hawaii 2024 Regular Session

• Introduced: 3/8/24
• Refer: 3/14/24

Caption

Requesting The Hawaii Hurricane Relief Fund And The Insurance Commissioner To Assess The Impacts Of Climate Change On Homeowner's Insurance.

Impact

The resolution aims to compile data on climate change's effects on homeowners' ability to secure insurance coverage for disaster-related damage, extending beyond hurricanes to include a variety of climate-related incidents. It intends to investigate the financial burdens created by these disasters and to assess public acceptance of the Loss Mitigation Grant Program, which likely supports homeowners in mitigating risks and managing insurance costs.

Summary

Senate Resolution 106, introduced in the Thirty-second Legislature of Hawaii, calls for the Hawaii Hurricane Relief Fund and the Insurance Commissioner to assess the impacts of climate change on homeowners' insurance. It expressly acknowledges the growing threat posed by climate change, which has led to an increase in extreme weather events such as hurricanes and wildfires, thereby prompting insurers to scale back or halt new policy sales. This situation complicates the insurance landscape for residents, particularly those in disaster-prone areas, requiring them to seek alternative, often more expensive and limited coverage options.

Contention

One of the notable points in this resolution revolves around the historical context of the Hawaii Hurricane Relief Fund, established after Hurricane Iniki in 1993 to address insurance market needs. There is concern stemming from the August 2023 Maui wildfires, which disrupted the perception of Hawaii as a low-risk insurance market. The resolution stresses the necessity for legislative insight into the insurance market's stability as climate threats escalate, indicating potential future challenges for homeowners in obtaining necessary coverage. The proposal reflects an urgent need for preventive measures in light of the existing vulnerabilities within the insurance system regarding climate-related disasters.