HONOLULU (KHON2) — Skyrocketing insurance costs are hitting Hawaii owners hard, especially those with condominiums.
The rising costs worsened in the wake of natural disasters nationwide including the Lahaina fires.
Some residents are finding home insurance costs to be more than double what they used to be. In addition, those who are living in community associations face increases in maintenance fees.
In an attempt to address the issue, the Hawaii Economic Association held an event on Thursday with potential solutions on the agenda.
“It will get better but it’s going to take time,” explained Mike Onofrietti of Island Insurance. “We also have to understand that with climate change risks, premiums are not going to go back to what they were three or four years ago.”
For Rep. Scott Saiki (D) House Speaker, risk needs to be mitigated.
“We need to mitigate risk in our state. There are wildfire zones, so many natural disaster risks in our state,” Saiki said.
According to Hawaiiana Management Company, reserved funds are being used to repave a parking lot, but cannot be used to pay for insurance.
Experts pointed out that Hawaii has been through insurance market shocks before, such as after Hurricane Iniki.
Seth Colby of the Economics Association Board of Directors said the rise in condo insurance is based on two issues: costly hurricane insurance coverage and increasing maintenance fees.
Insurance stabilization bills stalled in this past legislative session, which would have used public resources to help defray costs to residents.