Council Resolution on LZ1 & LZ2 High Cost of Home Insurance

[AaronS]

Punatang, it is certainly very encouraging. However, HOVE is in LZ2. There is no guarantee if you live in LZ1 you'll be as lucky.

American Modern P&C is the company underwriting the new insurance coverage for my brother.

[Punatang]

Not quite Capatalism at the Capitol:

https://www.staradvertiser.com/2024/01/2...icy-costs/

HAWAII NEWS

Bills aim to assist Hawaii property owners with policy costs

• By Dan Nakaso 
   
  
  
• Today 
   
  
  
• [i]Updated 12:20 am[/i]
  
  
• [i]A package of House bills would help property owners buy insurance in Hawaii’s most high-risk zones, including those in Puna’s riskiest lava zones and survivors of the Maui wildfires who also lost homes.
  [/i]
  
• State Rep. Greggor Ilagan (D, Hawaiian Paradise Park-Hawaiian Beaches-Leilani Estates) has introduced 10 bills ahead of one insurer’s plan to exit Hawaii’s property insurance market this summer.

[terracore]

the rest of the article:

On Maui, property owners are expected to file $1.3 billion in insurance claims, he said.

Since the Aug. 8 wildfires, Gov. Josh Green has repeatedly warned property owners across the islands that insurance premiums are going to rise.

State Insurance Commissioner Gordon Ito said the devastating Maui wildfires are “going to have a ripple effect across the whole state.”

At the same time, Ito said, insurance rates in Hawaii “cannot be excessive, inadequate or unfairly discriminatory.”

Property owners can help reduce their wildfire risks by creating buffer zones around their homes by trimming back brush and asking their insurers for discounts, Ito said.

Another bill, introduced by state Rep. Kyle Yama­shita (D, Pukalani-­Makawao-Ulupalakua), would create “the State Self-Insurance Against Property and Casualty Risks Special Fund to … make it easier for the state to self-insure or utilize a captive insurer to mitigate against property and casualty risks.” HB 565 stalled in 2023 but remains alive.

The Legislature in 1991 created the nonprofit Hawaii Property Insurance Association to provide insurance for property owners in Puna’s Lava Zones 1 and 2 who were unable to buy insurance otherwise, Ilagan said.

Private insurance companies who want to sell policies in Hawaii are required to join the HPIA to help cover the overall cost of claims.

House Bill 2054 would require the HPIA “to offer additional types of homeowners insurance policy options that exclude lava coverage.”

>> HB 2056 would create a working group to look at the possibility of a state-run “reinsurance program to ensure affordable coverage for property owners against catastrophic events.”

Reinsurance programs help insurance companies cover losses and claims, but — especially with climate change — “there are only a few reinsurance companies left in the world, and the money is drying up,” Ilagan said.

>> HB 2048 calls for one HPIA member to be appointed by the Senate president and one by the speaker of the House, rather than the state insurance commissioner.

>> HB 2049 would require the HPIA to be more transparent and post more information on its website.

Other bills are specific to Puna’s Lava Zones 1 and 2 or to Hawaii island property owners in general:

>> HB 2053 would cap insurance premiums for residential properties “located in lava zones on Hawaii island based on premiums of comparable residential properties not located in lava zones on Hawaii island.”

>> HB 2052 would bar insurance companies from offering coverage, or refusing to renew a policy “solely on the basis that the applicant’s or insured’s real property is located in a lava-flow hazard zone.”

In announcing the upcoming departure of Universal Property &Casualty, the state Department of Commerce and Consumers Affairs — which oversees the Hawaii Insurance Division — said property owners “may qualify for coverage from the Hawaii Property Insurance Association (hpiainfo.com).”

“The Hawai‘i Insurance Division publishes a range of insurance guides and premium comparison sheets for public review online at cca.hawaii.gov/ins/ resources,” DCCA said. “Consumers can utilize these informational guides to review and compare sample premiums from insurance companies licensed in Hawai‘i.”

In a statement, Insurance Commissioner Ito said in 2023:

“We remind consumers to be careful of potential scams. Many scammers prey on a consumer’s fear. Before doing business with an insurance agent or company, consumers should verify that they are an authorized and licensed insurance broker.”

---

The problem I see with those bills is that they are very similar to what drove the insurers out of California. Nobody is going to stay in the state to lose money.

Alternatively, people who aren't in high-risk zones will see their premiums go up to match the ones that are.

Neither of those options are good for everybody.

[Obie]

"The problem I see with those bills is that they are very similar to what drove the insurers out of California. Nobody is going to stay in the state to lose money."

I totally agree with this. Right now I'm insured with a company that doesn't sell homeowner insurance on the Big Island.
I'm guessing they keep me because I have insured everything I own with them for the last 40 years.

[Punatang]

Punatang, it is certainly very encouraging. However, HOVE is in LZ2. There is no guarantee if you live in LZ1 you'll be as lucky.

American Modern P&C is the company underwriting the new insurance coverage for my brother.

I called Atlas. A nice lady took my info and said she would submit it to American Modern. She promised to report back to me even though she seemed dubious. Long story short, she never called me back. I left a follow up message that was not returned.  Not impressed with the outfit but they probably think we are all Punatics which I suppose is about right. The person I spoke with did say that American Modern will sometimes underwrite if the specific property is very close to LZ3.  So it seems HOVE may be an acceptable risk for them but Puna is not.  C'est la vie.  Hope someone else has better luck. As it stands, I still do not beleive there is an alternative in Puna other than HPIA.

[terracore]

Punatang, it is certainly very encouraging. However, HOVE is in LZ2. There is no guarantee if you live in LZ1 you'll be as lucky.

American Modern P&C is the company underwriting the new insurance coverage for my brother.

I called Atlas. A nice lady took my info and said she would submit it to American Modern. She promised to report back to me even though she seemed dubious. Long story short, she never called me back. I left a follow up message that was not returned.  Not impressed with the outfit but they probably think we are all Punatics which I suppose is about right. The person I spoke with did say that American Modern will sometimes underwrite if the specific property is very close to LZ3.  So it seems HOVE may be an acceptable risk for them but Puna is not.  C'est la vie.  Hope someone else has better luck. As it stands, I still do not beleive there is an alternative in Puna other than HPIA.

Try this:

Justin Salgado
Associate Account Executive
Personal Lines – Sales Unit

HI License No. 14603707| Agency License No. 4793033
201 Merchant Street, Suite 1100 Honolulu, Hawaii 96813
Direct Line: (808) 533-8718 | Fax: (808) 550-1152

Email: jsalgado@atlasinsurance.com

I don't know if it's related to insurance companies not getting back to people, but there was some change in regards to Freddie Mac or Fannie Mae relating to insurance and condominium loans.  While it primarily affects Oahu, those loans have suddenly come to a standstill and have become an emergency for some people.

[AaronS]

PunaTang,

I called up Atlas's Honolulu office and was referred to Romela Antonio by the secretary who answered the phone. Romela got back to me  and started the process of initiating a quote for my brother. This resulted in my brother  obtaining homeowners coverage through them. If you look at the lava zone map, there is no LZ3 areas in HOVE. There is only LZ1 and LZ2 areas..  In other words, the secretary was talking out one side of mouth and likely doesn't know what she's talking about. My brother ran into the same issue when  he spoke to Atlas secretary at their Kona office.  I doggedly followed up with Atlas's staff in Honolulu, which resulted in my brother saving a lot of money.

Romela's email address is rantonio@atlasinsurance.com

[leilanidude]

I do not believe that American Modern is writing any policies in LZ 1 or 2 at this point. they were about the only company to open up to LZ 1 a couple years ago. I snagged one and my agent at Pyramid Insurance out of Hilo told me that right after I was accepted, they stopped taking any more applications in LZ1. My policy just renewed in December for another year. Hopefully they continue. I am paying right at $2k annually if I recall correctly.

[AaronS]

Leilanidude, My brother just executed a new homeowners insurance policy with Atlas Insurance. The new Atlas policy is underwritten by American Modern. He lives in the LZ2 portion of HOVE.

I can attest to it also since I saw the quote Atlas generated for my brother. It stated the new policy is underwritten by American Modern. As far as LZ1 coverage through American Modern, I don't know.The main concern I had was getting affordable homeowners coverage for my brother. He was facing a  100% rate increase just for liability coverage after UP&C pulled out.

[Punatang]

Mahalo terracore and AaronS for the referrals. I will follow them up and report back. It would be so nice to have alternatives. Thanks