Relief may be in sight for condominiums struggling to get insurance. Gov. Josh Green signed a measure into law that aims to stabilize the state’s property insurance market.
It reenacts the Hawaiʻi Hurricane Relief Fund to offer hurricane insurance policies for buildings that have been rejected by traditional insurers in the state. It started accepting applications from condominium buildings and has already issued 10 policies.
The law also allows the Hawaii Property Insurance Authority to receive funding to start offering commercial insurance to buildings that have been unable to secure full coverage. That is slated to start in the fall of this year.
While these actions are meant to stabilize the market, House Commerce and Consumer Protection Committee Chair Scot Matayoshi says a provision that allows the state to loan condos money for critical repairs will be crucial in the long term.
“Water loss, the repiping, and the sprinkler systems were the two major things that affected insurance prices," Matayoshi said. "So, for the condominium loan program, I didn't want it to be fixing a cracked sidewalk. We wanted to make sure, again, we got the most bang for our buck."
"So we focused it on those high-impact repairs, repiping, sprinkler systems, both of which, if you do at the same time, all the walls are open, are a little bit cheaper. But I think those are the solutions long-term that are gonna allow condominiums in existence to continue to be in existence, to continue to function at reasonable insurance rates in the future."
The loan program is expected to start sometime next year.
