On February 10, 2025, the Hawaii Senate introduced SB1128, a legislative bill aimed at reforming homeowners insurance policies, particularly concerning claims for additional living expenses during emergencies. This bill seeks to address the growing concerns of homeowners facing financial strain when their properties become uninhabitable due to covered perils, such as natural disasters.

The primary provisions of SB1128 establish clear requirements for insurers regarding additional living expenses claims. Notably, the bill mandates that policies must not limit a policyholder's right to recover costs if their home is rendered uninhabitable. Instead of direct payments for living expenses, insurers may offer alternative remedies that adequately address the conditions preventing habitation. Furthermore, the bill stipulates that during a declared state of emergency, policyholders are entitled to at least two weeks of additional living expenses coverage, with the possibility of extensions for good cause.

One significant aspect of the bill is its exclusion of coverage during utility-related public safety power shutdowns aimed at wildfire prevention. This provision has sparked debate among stakeholders, as it raises questions about the balance between risk management and homeowner protection.

The implications of SB1128 are substantial, particularly in a state like Hawaii, which is prone to natural disasters. Experts argue that the bill could provide much-needed financial relief to homeowners during crises, potentially reducing the long-term economic impact on families and communities. However, some insurers have expressed concerns about the financial burden these requirements may impose, leading to potential increases in premiums.

As the bill progresses through the legislative process, its future remains uncertain. Advocates for homeowners' rights are optimistic about its potential to enhance protections, while opponents caution about the economic ramifications for the insurance industry. The discussions surrounding SB1128 highlight the ongoing struggle to balance adequate homeowner protections with the sustainability of insurance practices in Hawaii.

In conclusion, SB1128 represents a critical step toward reforming homeowners insurance in Hawaii, addressing the pressing need for clarity and support during emergencies. As the bill moves forward, stakeholders will be closely monitoring its developments and potential impacts on both homeowners and insurers alike.