HONOLULU (KHON2) — The discussion of whether to reinstate the Hurricane Relief Fund took center stage Friday as insurance rates for condominiums continue to surge.
Originally established in 1993 after Hurricane Iniki caused over $1 billion in claims and drove insurers out of Hawaii, the fund closed operations in 2000 as private sector insurance options became more available.
However, with insurance premiums having soared by up to 1,000% following the recent Maui wildfires, there is renewed interest in resurrecting the fund to provide additional coverage options for condominium associations.
A board member highlighted the dramatic price increases, noting that high prices often signal broader market issues.
“People are seeing very steep increases, which could be a sign of sustained or even higher rates,” the member said.
Earlier this week, Governor Josh Green signed an emergency proclamation designed to stabilize the state’s volatile condominium insurance market.
The measure permits loans to be made to the Hurricane Relief Fund and authorizes the fund to issue hurricane insurance policies.
The board is expected to reconvene later this month to further discuss the potential revival of the fund and its implications.