Council Resolution on LZ1 & LZ2 High Cost of Home Insurance

[Punatang]

Insurance companies belive in the futility of attempting to fight fire without water.

[HereOnThePrimalEdge]

Insurance companies belive 

To bad the county didn’t think about that when they approved subdivisions for developers. Or if they did think about it, approval with the requirement that insurance companies conduct business for the entire island.  Not cherry pick low risk areas for maximum profits.

[ChunksterK]

Reportedly people in HPP (LZ3) are being notified by DB (formerly Dongbu) their policies will not be renewed.  "Because of the Maui fires".

I spoke with a reputable Hilo DB (formerly Dongbu) agent today and got the facts on this situation.  They are "pulling back" from the Hawaii market by not renewing any policies on homes valued under $400,000.  This was described as related to the Lahaina fire and not to lava zone designations.  The practical effect, however, is that the great majority of homes on this island under that price point will be in Puna and Kau.  So while they may not be redlining any particular subdivisions or lava hazard zones, the practical effect is the very similar.

The good news, at least for folks in HPP (my specific point of reference) is that there are still several companies issuing policies.  Of course, the bad news is that it will cost considerably more.  The Frau and I have been told by eager real estate agents that our home is worth more than the cutoff, but DB's formula says otherwise.  So we are looking for new coverage.  Fortunately, we are good until mid-April, so we have time.  Others are scrambling to get coverage by February.

[terracore]

Thanks for posting the update and the facts of the situation. I'm not in HPP but it sounds like I'll be shopping for insurance soon...

I keep getting these ads on social media "Affected by Maui fires? Our attorneys are here to help!"

Does this count as "affected" ?

[ChunksterK]

@ Terracore: First, you are quite welcome. I should add that I did not receive a notice in the mail, but pro-actively called my agent. That left me wondering just how much formal notice folks have been receiving. I'll post here when I get a letter from DB.

To answer your question about having been "affected," hell yes, you've been affected. You're losing your affordable homeowner's insurance. We should sue HELCO, God, or somebody.

[terracore]

@ Terracore:  First, you are quite welcome.  I should add that I did not receive a notice in the mail, but pro-actively called my agent.  That left me wondering just how much formal notice folks have been receiving.  I'll post here when I get a letter from DB.

To answer your question about having been "affected," hell yes, you've been affected.  You're losing your affordable homeowner's insurance.  We should sue HELCO, God, or somebody.

This reminds me of the 2014 flow when Dongbu tried not-renewing commercial accounts.  The mayor or the governor (I don't recall) contacted them and they changed course and renewed the policies of properties not directly in the path of the lava.  Or at least that is what I recall, I can't find any old news articles about it.

Maybe our elected officials need to be proactive again.  We will see about contacting them, but don't have any first-hand information ourselves so will need to obtain that first. If anybody else can join the cause, it wouldn't hurt.

[AaronS]

My brother and his family live in HOVE. He had home insurance coverage via UP&C via Aloha Insurance Services. If he stayed with  Aloha, his insurance premium would've doubled. I made some phone calls and was able to find affordable coverage through Atlas  Insurance out of Honolulu for LZ2. American Modern Property & Casualty is the underwriter for the coverage.

[Punatang]

My brother and his family live in HOVE. He had home insurance coverage via UP&C via Aloha Insurance Services. If he stayed with  Aloha, his insurance premium would've doubled. I made some phone calls and was able to find affordable coverage through Atlas  Insurance out of Honolulu for LZ2. American Modern Property & Casualty is the underwriter for the coverage.

Mahalo for sharing that AaronS.  I bet he appreciated your help.  How long ago was that?

[AaronS]

Punatang, my brother just signed the final documents executing the new coverage this week. His UP&C via Aloha Insurance Services was slated to expire in February 2024. As far as I understand, the new coverage premium will be included with his monthly mortgage payment. He had HPIA before at his previous house that was maliciously burnt down. The premium had to be paid separately at the end of the year in lump sum.

[Punatang]

Punatang, my brother just signed the final documents executing the new coverage this week. His UP&C via Aloha Insurance Services was slated to expire in February 2024. As far as I understand, the new coverage premium will be included with his monthly mortgage payment. He had HPIA before at his previous house that was maliciously burnt down. The premium had to be paid separately  at the end of the year in lump sum.

Mahalo for that AaronS.  That is indeed encouraging news.