Understanding Hawaii's Condo Insurance Crisis and Its Impact

Hawaii's condo insurance crisis is a pressing issue that affects thousands of residents. The state's unique geography and climate make it prone to natural disasters, such as hurricanes and tsunamis, which drives up insurance costs.

Many condo associations are struggling to afford the increasing premiums, with some facing hikes of up to 400% in a single year. This has led to a situation where many associations are considering dropping their insurance coverage altogether.

The crisis has been exacerbated by the state's insurance market, which is dominated by a few large companies. This lack of competition has allowed companies to charge exorbitant rates, leaving condo associations with limited options.

Sales of condos in Waikīkī and Makiki-Mō‘ili‘ili neighborhoods fell 48% and 38% respectively in June.

The condo insurance crisis in Hawaii is having a significant impact on sales, particularly in areas with many underinsured, older condo buildings.

Hawai‘i’s condo insurance crisis is now hurting sales, with sales falling 48% in Waikīkī and 38% in Makiki-Mō‘ili‘ili in June.

Hurricane insurance for condos is a major part of the problem, with insurers changing their criteria for insuring properties.

Insurers are changing criteria for insuring properties, which might mean pulling out of areas considered risky or not renewing certain types of policies.

In Hawaii, there are anecdotal reports that DB Insurance has quit renewing insurance for wood frame condo buildings, which could be a major issue for many condo owners.

The real problem for Hawaii condo owners is a relative lack of master hurricane insurance policies covering condominium structures and common areas.

None of Hawaii’s hurricane carriers has pulled out, but at least one won’t provide 100% coverage against hurricane losses, leaving local agents with a daunting task of cobbling coverage from the secondary insurance market.

This has led to a sharp increase in premiums, with the Peninsula experiencing a significant increase in costs.

The Peninsula has found money from a legal settlement to cover the cost of rising premiums for 2024, but there's no clear plan for 2025.

For now, the Peninsula has managed to find a solution, but it's unclear what the future holds for other condo owners in Hawaii.

Insurers are struggling to keep up with climate-related losses across the US, leading to higher rates and even cancellation notices for some homeowners.

Climate change is driving up home insurance rates, but not always in areas with the greatest risk.

Homeowners in areas with high climate risk are facing the brunt of rising rates, while others may be getting off scot-free.

It's no longer just California and Florida that are struggling with insurance woes; insurers are losing money around the country.

This means that homeowners in many areas are facing higher rates, which can be a significant burden for those on a tight budget.

If you're wondering how your home insurance costs compare to others in the state, you can check out our interactive map to see how premiums are surging unevenly across the country.

Insurance premiums are increasing rapidly, and your rates might be out of step with local risks. This is especially concerning for Hawaii condo owners, who are already facing a crisis in affordable insurance options.

To get a better understanding of your home insurance costs, you can use our interactive map to compare your premiums with others in the state. This will give you a clear picture of how your rates compare to the local average.

Insurance rates are influenced by a variety of factors, including location, property value, and risk level. By using our interactive map, you can see how these factors affect insurance premiums in different areas of the state.

In Hawaii, condo owners are required to have insurance to cover their units, but many are finding it increasingly difficult to obtain affordable coverage.

The cost of condo insurance in Hawaii has skyrocketed in recent years, with some policyholders seeing increases of 200% or more.

Most condo associations in Hawaii require owners to purchase insurance to cover the building and common areas, but this can be a significant expense for many owners.

Typically, condo owners pay a portion of their insurance premiums directly to the insurance company, while the association pays the rest.

In Hawaii, the average annual cost of condo insurance is around $1,500, but some owners are paying as much as $3,000 or more per year.

Many condo owners are finding it difficult to afford this increased cost, which can lead to financial strain and even foreclosure.