Condo owners in Hawaiʻi have been dealing with sky-high insurance bills over the past year. It has led to headaches for condo owners and associations alike. But one local expert said it's important to know that this is not going to last forever.
In the past year or so, condo owners in Hawaiʻi have been dealing with insurance bills they never saw coming. Premiums have skyrocketed and nearly 400 condo associations in the islands cannot afford to pay for 100% replacement costs. That means if there's a fire or other disaster, they won't have enough insurance coverage to rebuild.
The problem is that banks won't lend to those buildings that are underinsured. So people who want to buy a condo have a harder time getting a mortgage, which means sellers have fewer potential buyers. And that's impacting condo sales and prices.
The state Legislature tried to step in last year, but a bill to remedy the situation failed to pass. Lawmakers are looking at solutions in the current session, too, and so far, there's no clear fix.
But Sue Savio said people should remember that real estate is a long game.
Savio has been in the real estate business since she and her sister saved up their babysitting money to buy a condo when they were teenagers. Now she is the president and owner of Insurance Associates in Honolulu, and she is somewhat optimistic that things are starting to turn around.
For the first time in more than a year, rates are starting to come down. Savio says if there are no major hurricanes, we could see rates drop by another 15% to 30% by the end of the year.
