Hawaii’s 2025 Legislative Session brought forward over 50 “condo related” bills. We have evaluated them to see how they impact owners and residents living in condos and shared communities. The following considerations were based off the meta-analysis of all bills listed on our Bill Tracker spreadsheet!

Insurance-Related Bill Evaluations:

As the legislative session unfolds, numerous bills addressing the challenges of insurance for condominium owners in Hawaii have been introduced. Given the complexity and overlap among these proposals, there is a clear need to consolidate and enhance these bills to create more effective, comprehensive insurance solutions. Here’s how we can streamline these efforts to better serve condominium owners and renters across the state.

Bill Consolidation:

Part 1: Market Structure and Stabilization

(Consolidating SB805, SB1044, SB1140)

1. FAIR Program Integration
   • Establish mutual insurance entity
   • Mandatory coverage provisions
   • Risk-sharing mechanisms
   • Premium increase caps (addressing 300-1000% spikes)
   • Guaranteed renewal provisions
2. Market Oversight
   • Independent oversight board structure:
     • 40% homeowner/condo owner representation
     • 30% insurance experts
     • 30% consumer advocates
   • No industry representatives from management companies
   • Quarterly public meetings requirement

Part 2: Consumer Protection and Transparency

(Consolidating SB803, SB1128, SB1129)

1. Mandatory Disclosures
   • Premium calculation methodologies
   • Rate adjustment justifications
   • Electronic notification system
   • 90-day advance notice for any changes
   • Plain language requirement (6th-grade reading level)
2. Consumer Rights
   • Appeals process for rate increases
   • Public comment periods
   • Access to complete policy information
   • Right to participate in rate hearings

Part 3: Risk Management and Mitigation

(Consolidating SB697, SB706, SB1141)

1. Risk Reduction Programs
   • Wind resistive device incentives
   • Property hardening credits
   • Disaster preparedness requirements
   • Regular risk assessment protocols
2. Coverage Requirements
   • Comprehensive peril coverage
   • Natural disaster inclusion
   • Clear exclusion statements
   • Standardized policy language

Implementation Timeline

1. Immediate (0-6 months)
   • Establish oversight board
   • Implement electronic notification system
   • Begin premium increase monitoring
   • Launch consumer protection office
2. Mid-term (6-12 months)
   • Complete mutual insurance entity formation
   • Roll out risk reduction programs
   • Implement transparency requirements
   • Begin regular public reporting
3. Long-term (12-24 months)
   • Full market stabilization
   • Complete integration of all programs
   • Comprehensive data analysis system
   • Regular effectiveness reviews

Key Enforcement Mechanisms

1. Penalties and Compliance
   • Significant fines for violations
   • License revocation provisions
   • Mandatory audit requirements
   • Public reporting of violations
2. Monitoring and Reporting
   • Quarterly market analysis
   • Annual consumer impact studies
   • Regular legislative updates
   • Public accessibility of all reports

This consolidated framework addresses key concerns about:

• Transparency in rate setting
• Consumer representation in governance
• Protection against extreme premium increases
• Clear communication requirements
• Comprehensive coverage mandates

Benefits of Cohesive Problem Solving:

By consolidating these bills, we can create a more effective legislative tool that not only simplifies the legal landscape but also significantly improves the accessibility and affordability of insurance for condominium owners in Hawaii. This approach will ensure that all stakeholders, including homeowners, renters, and insurers, benefit from more coherent and powerful insurance regulations. Let’s encourage our lawmakers to focus on solutions that bring real change, moving beyond the fragmented efforts that currently exist. Together, we can build a more resilient and financially secure community.ve complexity and increase the effectiveness of the measures proposed to stabilize the insurance market for condominiums.

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