Following ongoing concerns with rising insurance premiums, Hawaiʻi has enacted a new law that aims to provide relief to homeowners across the state. 

On July 7, Hawaiʻi Governor Josh Green signed Senate Bill 1044 into law, now referred to as Act 296. The legislation focuses on stabilizing Hawaiʻi’s property insurance market, particularly amid rapidly increasing premiums and limited coverage options that have been worsened by recent environmental disasters, including the devastating 2023 wildfire in Maui.

The legislation also expands the Hawaiʻi Hurricane Relief Fund coverage to condominium buildings after insurance premiums have skyrocketed in recent years. Originally created in 1993 following the devastation of Hurricane Iniki, the fund will now ensure that condominiums can obtain hurricane coverage. 

“The rising cost of insurance has become yet another unbearable burden for Hawaiʻi and its residents over several years and mirrors a similar crisis on the mainland,” Green said at the bill signing ceremony. “I am appreciative of the Legislature, the Hawaiʻi Insurance Division, and all the passionate stakeholders for the dedicated and collaborative effort over the past two years as we addressed this challenge.” 

The rising global temperature has triggered a cascade of effects, including sea level rise, more severe weather events, and persistent droughts. As a result, insurance companies are facing increased payouts and are raising premiums to cover these higher costs, impacting homeowners and businesses. 

According to a press release from the U.S. Department of the Treasury, between 2018 and 2022, insurance premiums across the country rose faster than the rate of inflation.

However, the impact of climate-related disasters has taken a noticeable turn for the worse as well. “Insurers’ costs in 2018-2022 were higher in areas with the highest expected losses from climate-related perils,” the release reads. 

Hawaiʻi State Senator Jarrett Keohokalole, chair of the Senate Committee on Commerce and Consumer Protection, applauded the positive impact that the bill will have on homeowners in the state. 

“This bill is a lifeline for thousands of Hawaiʻi residents crushed by soaring insurance costs and finally gives them somewhere to turn,” Keohokalole said in the release.

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