Homeowner's Insurance.... getting jerked around

[HiloJulie]

Yes Midnight.

I was shocked when I realized that. Now to be further clear way back then there was a mortgage on our home and property which has been paid off for over 15 years.

I don’t know if having the mortgage originally caused the premium to be higher back then versus what it is today with no mortgage??

[Obie]

From today's Tribune:
"Insurance company that covers about 1,000 Big Isle customers is exiting the market"

A mainland-based insurance provider is pulling out of the Hawaii market, leaving residents in Lava Zones 1 and 2 in a tough spot.

Universal Property and Casualty Insurance Co. of Florida announced earlier this month that it intends to withdraw from the state homeowners, condominium and renters insurance market, giving notice to about 1,500 home- and condo owners statewide that their policies will terminate by Aug. 31, 2024.

"My broker said the only other insurance available to me is state insurance,” said Hawaiian Beaches resident Kent Christianson, referring to the Hawaii Property Insurance Association, which provides basic property insurance to those unable to receive conventional coverage.

Christianson said the premiums for his current coverage through UPC is about $1,700 per year. But equivalent coverage through the HPIA would cost about $7,000 or more, which he said is completely unmanageable."

[Deckman]

I live in Hawaiian Shores and found out several neighbors who bought their houses in the last 2 years have been denied homeowners insurance and were forced to get HPIA state insurance ($4500 to $7000). With Universal Insurance pulling out of Hawaii, myself and at least 10 of my neighbors are going to have to get HPIA. The Lava Zones are not accurate so I would like to see the Governor to declare an Insurance Emergency or at least do an Executive Order declaring all licensed Insurance companies have to offer Homeowners insurance in all Lava Zones or risk losing their license. Do you think that could ever happen?

[Midnight Rambler]

No. What makes you say the lava zones aren't accurate?  They're based on historic eruptions and have proved pretty accurate so far. If such an order were to be made, it's more likely to lead to companies pulling out of Hawaii altogether rather than insuring zones 1 and 2.

[AaronM]

Home insurance is a privilege and not a right.  Just ask people in CA and FL.

HPIA is perfectly adequate.

[Deckman]

When Beaches/Shores subdivision hasn't seen a lava flow in over 250 years but is classified as LZ-2. The new Pahoa Fire/Police station (LZ-3) was on alert for the lava flow in 2014. Hilo (LZ-3) was within a mile of lava damage in 1984. This is why the Lava Zones need to be updated. Updated or not, why would insurance companies refuse to write policies. They should facture in the risks and charge accordantly. Something is wrong here and I suspect it is the reinsurance companies that covers our insurance companies risk that are pulling the strings.

I agree HPIA is adequate if their rates were reasonable. $6000 to $7000 per year is more than most Puna families can handle.

[oink]

I'm in southern FL. My carrier, UPC, pulled out of FL. To get reinsured I had to replace my perfectly functioning electric panel because they didn't like my brand (Challenger) and I had to replace my also perfectly functioning water heater because it was over 8 years old. My new insurance cost is just over $11k.

[MyManao]

When Beaches/Shores subdivision hasn't seen a lava flow in over 250 years but is classified as LZ-2. The new Pahoa Fire/Police station (LZ-3) was on alert for the lava flow in 2014. Hilo (LZ-3) was within a mile of lava damage in 1984. This is why the Lava Zones need to be updated.

Lava Zones are determined by topography and their relationship to the Rift Zones. Specific historic events or the elapsed time between them don't play into the calculations that went into determining zone boundaries, and nothing anyone says or does effects them. They are not going to change without substantial changes in the structure of the volcano.

Several have proposed changes for all sorts of reasons. The farmers in South Kona have proposed they be changed simply because they adversely effect their insurance rates.

The Map Showing Lava-Flow Hazard Zones, Island of Hawaii can be seen here and the discussion of the hazards and zones which is included on pg 21 of the Volcanic and Seismic Hazards on the Island of Hawaii booklet here. From that publication the three zones of interest are defined as..

• Zone 1 - Includes the summits and rift zones of Kilauea and Mauna Loa where vents have been repeatedly active in historic time.

• Zone 2 - Areas adjacent to and downslope of active rift zones.

• Zone 3 - Areas gradationally less hazardous than Zone 2 because of greater distance from recently active vents and/or because the topography makes it less likely that flows will cover these areas.

As to insurance.. be grateful HPIA exists. It's a state enforced entitlement program that unless expanded to include all hazardous areas in the state, regardless of their type, is constitutionally tenuous at best.

[Deckman]

FYI - Senator Joy San-Buenaventura and State House Representative Greggor Ilagan are convening a meeting on Aug. 23 at the Stables (Hawaiian Shores Community Building) at 5:30pm top of Kahakai Blvd. Supposedly they're bringing folks from HPIA and the Insurance Commissioner.