Homeowner alert: Property insurers rethink coverage in Hawaii

If you are a property owner, there’s a good chance that your insurance premiums have increased, or will increase, perhaps significantly. After several unprecedented natural disasters on the mainland, states like Texas, Florida, and California have seen insurance carriers massively raise rates or leave these markets entirely.

Now Hawaii has come into the spotlight with the tremendous losses from the recent Maui wildfires. With the increase in natural disasters, insurers and banks are scrutinizing home insurance policy coverage. They are finding that insurance coverage limits, specifically for some condominiums, may not be sufficient to cover the full expense of claims.

The result? Allstate just placed a moratorium on all new condominium (HO6) homeowner insurance policies throughout Hawaii effective September 25, 2023. Additionally, local banks are not approving new home loans for a growing list of condominiums that are “underinsured.” Please reach out to me or your insurance agent if there’s a specific condo you are concerned about.

Read more about this property insurance storm that has been brewing with the increasing effects of climate change. [more]