The recent surge in condominium insurance rates in Hawaii has caused significant financial strain for homeowners across the state. With insurance rates increasing by as much as 1,000%, Governor Josh Green took action by signing an emergency proclamation aimed at stabilizing the volatile insurance market. This move comes as insurance rates have skyrocketed nationwide due to a hardening global insurance industry and an increase in catastrophic events.
Hawaii, in particular, is vulnerable to market upswings due to its small size, high real estate costs, and unique risk profile. The state’s Insurance Division is not authorized to regulate rates charged by surplus lines insurers, which significantly contribute to the increase in condominium associations‘ master policy premiums. This has led some associations to insure buildings for less than full value or not at all, causing further problems within the market.
The proclamation signed by Governor Green allows loans to be made to the Hawaii Hurricane Relief Fund and the Hawaii Property Insurance Association to facilitate the issuance of hurricane and property insurance policies to condo associations. It also permits the HHRF to issue hurricane insurance policies for large condominium buildings and set its own coverage limits. These changes were recommended by a joint executive and legislative task force established by the governor to monitor the insurance market and implement short-term fixes.
The task force, led by State Insurance Commissioner Gordon Ito, state House Speaker Scott Saiki, and state Senate majority floor leader Jarrett Keohokalole, includes members from the insurance, mortgage lending, and real estate industries. Their goal is to identify potential solutions to address the rising cost of property insurance and provide stability for residents living and working in Hawaii.
The proclamation aims to ensure that Hawaii remains a viable and secure place to live, even in the face of global insurance challenges. By working closely with industry experts, federal partners, and legislative leaders, Governor Green is committed to safeguarding the interests of communities and providing stability for people in Hawaii. The emergency measures put in place will help alleviate the financial burden on homeowners and prevent further disruptions in the insurance market.
In conclusion, the emergency proclamation signed by Governor Josh Green is a critical step towards stabilizing the insurance market in Hawaii. By addressing the surge in condominium insurance rates and providing support to condo associations, the state aims to protect residents from further financial strain. With the collaboration of industry experts and legislative leaders, Hawaii is working towards ensuring a secure and stable environment for its residents amidst global insurance challenges.