A property insurance measure that renews the Hawaii Hurricane Relief Fund (HHRF) and modifies the role of the state’s insurer of last resort has been passed by the Hawaii Legislature and is now on the desk of Gov. Josh Green (shown above).

The governor has recently approved a different law that increases the notification periods for property insurance cancellations.

Senate Bill 1044 would enable the Hawaii Property Insurance Association to issue policies for additional recourse properties that are difficult to insure. Criteria will be set by either the association or the insurance commissioner.

The intention of the expansion is to be a stop gap measure with a maximum duration of five years. The legislation also mandates that the state’s insurance commissioner develop plans for more enduring solutions.

The bill recommends renewal of the HHRF and its extended powers to cover condominiums. The hurricane fund was historically subsidized by certain revenue streams which included a special recording fee on mortgages offered to the public. Lawmakers deemed this regressive because buyers who financed a greater portion of their home purchase incurred, while buyers who made larger down payments or bought with cash paid lower fees.

If passed, SB 1044 would replace this funding scheme with a flat fee based on the number of documents filed.