Condominium building insurance rates are beginning to stabilize. This comes five months after the state's Hurricane Relief Fund began issuing policies to buildings that couldn't secure coverage on the traditional market.
Buildings unable to get hurricane insurance from one of the few carriers in the state had to turn to surplus, unregulated carriers. That can be extremely costly.
The state's Hurricane Relief Fund was reinstated to force the market to bring prices down.
Administrators of the program told lawmakers that policy rates for buildings have been decreasing by 40% to 50%.
Marsh USA is operating as the insurance plan administrator for the state. Its managing director, Scot Sterenberg, described the impacts of the state's efforts following the 2023 Maui wildfires that exacerbated the condominium insurance crisis.
"In 2025, in June, we started to see these prices stabilize. And we're starting to see now some capacity come back into the market," he said.
"So after Lahaina, our admitted carriers became very restrictive in their underwriting and withdrew some capacity. And now we're seeing capacity, meaning more carriers wanting to do business here, writing insurance," Sterenberg said. "What filled the gap, what was known as excess and surplus lines carriers, hose carriers are also now becoming more competitive."
However, policies for individual units have been declining, particularly after submitting a claim.
The state is also setting up a program to offer commercial insurance to condominium buildings. It expects to start the program at the beginning of next year.
