Hawaii is set to reopen its Hurricane Relief Fund (HHRF) this summer, marking a significant shift in the state’s approach to property insurance. The Department of Commerce and Consumer Affairs announced that the fund, which has been inactive since the early 2000s, will begin issuing policies soon. This move comes as the state grapples with a crisis in the property insurance market, particularly affecting condominium associations.
The HHRF was established in 1993 after Hurricane Iniki caused extensive damage across the islands in 1992. Iniki, a Category 4 hurricane, led to over $3 billion in damages and prompted many private insurers to exit the market. The fund was created to fill the gap in hurricane property insurance when coverage was unavailable. It successfully insured around 155,000 policyholders during the 1990s but stopped issuing new policies by December 2000 as private insurers returned to the market.
Now, with insurance premiums soaring—some rising by as much as 1,000%—Governor Josh Green has initiated an emergency response. His proclamation in 2023 aims to stabilize the insurance market and address the challenges facing condo owners. The HHRF currently holds $170 million to support this initiative.
During a recent public hearing, HHRF board vice chair Mike Nonaka stated that the fund plans to start issuing policies in June, focusing on providing excess coverage rather than primary insurance. This approach will help condo associations struggling to find affordable coverage. The governor’s emergency order allows the HHRF to set its own coverage limits and temporarily suspends certain state laws to streamline the process.
The board is working with Aon Re and state lawmakers to establish the operational framework for the fund. This includes hiring staff and developing underwriting guidelines. The final policy structures will undergo regulatory review once they are complete.
In addition to condominiums, townhome communities are also facing similar challenges with rising premiums, reinforcing the need for the HHRF’s reactivation. The state’s proactive steps aim to ensure that residents can secure the insurance they need to protect their properties against future hurricanes.