HB1502 • 2026

RELATING TO INSURANCE.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: COCHRAN, AMATO, BELATTI, GRANDINETTI, IWAMOTO, PERRUSO, SOUZA, Matsumoto
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill's effective date of July 1, 3000, is likely a placeholder and needs updating.

Insurance Protections Before and After Disasters

This bill sets rules for insurance companies to provide protections before and after disasters, including notice requirements and grace periods.

What This Bill Does

Requires insurance companies to give at least 60 days' notice before canceling or not renewing a policy.
Informs policyholders about the number of claims that could lead to cancellation and important deadlines in their policies.
Provides a grace period for paying premiums during declared emergencies, allowing up to two six-month extensions.
Adjusts insurance coverage limits after total losses due to disasters.
Offers additional living expense coverage for a period of no less than twenty-four months plus extensions as needed.

Who It Names or Affects

Homeowners and property owners who have insurance policies in disaster-prone areas.

Terms To Know

Grace period: A time when you don't need to pay your insurance bill, even if it's late.
Total loss: When something is completely destroyed and there's no value left.

Limits and Unknowns

The bill does not specify how much the additional living expense coverage will cost.
It is unclear if insurance companies will fully comply with these new requirements.
The effective date of July 1, 3000, suggests this might be a placeholder and needs to be updated.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment adds new requirements for homeowners insurance policies to provide longer coverage periods for additional living expenses during states of emergency, offers minimum payment amounts for contents loss, and sets rules for building code upgrades and replacement costs.

Homeowners insurance policies must now offer a minimum period of 24 months for additional living expense coverage during declared emergencies, with the possibility of extending this to up to 36 months if necessary delays are encountered by the insured.
Insurance companies must provide policyholders with a list of items that may be covered as additional living expenses when making claims.
For total losses of contents in furnished residences due to state of emergency, insurers must offer a payment without requiring an itemized claim, up to 30% of the dwelling's coverage limit or $250,000 maximum.
Policies cannot deny payments for building code upgrades or extended replacement costs if the policyholder decides to rebuild in a new location.

The amendment text includes an incorrect effective date (July 1, 3000) which seems unrealistic and likely contains an error.
Some parts of the amendment are technical and may require further clarification or context for full understanding.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-06 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick, Shimizu voting no (4) and Representative(s) Ward excused (1).
2025-02-06 H
Reported from PBS (Stand. Com. Rep. No. 244) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2025-02-05 H
The committee on PBS recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Belatti, Iwamoto, Hashem, Lamosao, Poepoe, Woodson, Souza; Ayes with reservations: none; 1 Noes: Representative(s) Shimizu; and 2 Excused: Representative(s) Ichiyama, Morikawa.
2025-01-31 H
Bill scheduled for decision making on Wednesday, 02-05-25 11:00AM in conference room 411 VIA VIDEOCONFERENCE.
2025-01-31 H
The committee(s) on PBS recommend(s) that the measure be deferred until 02-05-25 at 11:00AM.
2025-01-28 H
Bill scheduled to be heard by PBS on Friday, 01-31-25 8:30AM in House conference room 411 VIA VIDEOCONFERENCE.
2025-01-27 H
Referred to PBS, CPC, FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.

Official Summary Text

RELATING TO INSURANCE.
Property and Casualty Insurance; Homeowners Insurance; Pre- and Post-Disaster Protections
Establishes requirements for property and casualty insurers and policies for pre- and post-disaster protections. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1502

HOUSE OF REPRESENTATIVES

H.B. NO.

1502

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to insurance
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The legislature finds that, according to data
collected by Council for Native Hawaiian Advancement, due to the Maui wildfires,
the average homeowner payout for coverage was $550,000.
�
The average cost to rebuild a same or similar
dwelling at $350 to $450 per square foot will be approximately $600,000 to $850,000.
�
The average deficit will be between $50,000
to $300,000.
�
For some owners the deficit
may be much larger.
�
The legislature
notes that one policyholder closed on a home for $1,300,000 eight days before
the wildfire.
�
This person's dwelling was
insured for approximately $300,000.
�

Speaking with policyholders, most relied on their insurance agent to
provide them adequate insurance for their properties.
�
The overwhelming majority of policyholders
were underinsured and face financial uncertainty about their ability to
rebuild.

����
Accordingly, the purpose of this Act
is to establish requirements for property and casualty insurance policies for
pre and post disaster protections.

����
SECTION 2.
�
Chapter 431, Hawaii Revised Statutes, is
amended by adding a new part to article 10E to be appropriately designated and
to read as follows:

"
Part .
�
pre and post disaster protections

����
�
431:10E-A
�
Definition.
�

For purposes of this part, "property and casualty insurer"
or "insurer" has the same meaning as in section 431:3-401.

����
�
431:10E-B
�
Notice of cancellation or nonrenewal.
�
For policies of property and casualty
insurance, the property and casualty insurer shall give written notice of
prospective cancellation or nonrenewal to the insured no fewer than sixty days
prior to the effective date of the cancellation or nonrenewal.
�
The notice shall state the reason for the cancellation
or nonrenewal.
�
The insurer shall
continue all property and casualty insurance coverage in force for sixty days
following the mailing.
�
Cancellation or
nonrenewal shall not be deemed valid unless evidence of mailing is provided.

����
�
431:10E-C
�
Insurance disclosures on purchase of policy;
notifications.
�
(a)
�
The property and
casualty insurer shall notify the policyholder regarding the number of claims
filed that may result in a cancellation of a policy and shall notify the
policyholder if a particular claim may result in cancellation.

����
(b)
�

An insurer shall notify each policyholder of any important deadlines of
the policy sixty days and thirty days before the deadline.

����
�
431:10E-D
�
Grace period; state of emergency.
�
Notwithstanding any grace period specified in
an insurance policy, upon the declaration of a state of emergency or local
state of emergency pursuant to section 127A-14, each property and casualty
insurer shall provide a grace period of sixty days on the payment of policy
premiums for policyholders located in the area of the state of emergency or
local state of emergency, as applicable.

����
�
431:10E-E
�
Adjustment of premium and policy limits post
disaster.
�
When an insurer renews a
policy after a total loss due to a disaster, the insurer shall adjust the
premium and policy to reflect the actual state of the insured property.

����
�
431:10E-F
�
Additional living expense coverage; option.
�
(a)
�

During a state of emergency or local state of emergency declared
pursuant to section 127A-14, each property and casualty insurer shall provide
an option of additional living expense coverage for a period of no less than
twenty-four months and up to two six-month extensions allowing homes to be
restored to safe, sanitary, and habitable conditions.

����
(b)
�

Property and casualty policies shall provide two weeks coverage for
emergency housing in the event of an evacuation, plus any extensions as needed.

����
(c)
�

Each property and casualty insurer shall provide a list of items covered
under additional living expense coverage.

����
�
431:10E-G
�
Total loss of content; content coverage.
�
In the event of a total loss of content due
to a natural disaster, property and casualty insurers shall not require an
itemized list of items lost and shall cover one hundred per cent of the limit
of content coverage.

����
�
431:10E-H
�
Close of claim; extension.
�
If a policyholder is unable to rebuild a
property within the time specified under the terms of policy, a property and
casualty insurer shall pay the full amount of all replacement value of the
insured property, including building code upgrades and extended replacement
costs, at the time of close out; provided that the property and casualty
insurer shall allow no less than thirty-six months' time to close a claim, with
two extensions of six months for good cause.

����
�
431:10E-I
�
Relocation.
�
No policy shall limit a policyholder's
ability to move to a new location with either an existing home or to build a
new home.
�
The policy shall pay the
amount of the total loss of the insured property, including the:

����
(1)
�
Full insured replacement cost without
deduction for actual cash value; and

����
(2)
�
Payment of building code upgrades and extended
replacement costs.

There shall be no consideration for land value upon
which the replacement home is located."

����
SECTION
3
.
�
Section
431:10-226.5, Hawaii Revised Statutes, is amended to read as follows:

����
"
[
[
]�431:10-226.5[
]
]
�

Notice of cancellation or nonrenewal.
�
[
In
]
Except as provided in section
431:10E-B, in
the case of cancellation of a policy, the insurer shall give
written notice to the insured not fewer than [
ten
]
sixty
days [
prior
to
]
before
the effective date of cancellation.
�
For nonrenewal of a policy, the insurer shall
give written notice to the insured not fewer than [
thirty
]
seventy-five

days [
prior to
]
before
the effective date of nonrenewal.
�
If under title 24 or a policy, a longer time
period is required for a notice of cancellation or nonrenewal for the policy,
the longer period shall be applicable.
�

Cancellation or nonrenewal shall not be deemed valid unless evidence of
mailing is provided."

����
SECTION
4
.
�
Section
431:10E-124, Hawaii Revised Statutes, is amended to read as follows:

����
"
[
[
]�431:10E-124[
]
]
�

Use of inquiries and other information.
�
(a)
�

An insurer shall not refuse to issue, refuse to renew, or cancel a homeowners
insurance policy, or establish rates for coverage based in whole or in part on
inquiries made by any consumer to an insurer, unless the inquiry provides
information not previously disclosed by the insured.

����
(b)
�
An inquiry by a telephone call or other
communication made to an insurer regarding the terms, conditions, or coverage
afforded under a homeowners insurance policy that does not result in a claim,
including questions concerning whether a policy will cover a loss or the
process for filing a claim, shall not constitute a claim.
"

����
SECTION
5
.
�
Section 657-7,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�657-7
�
Damage to persons or
property.
�
(a)
�
Actions for the recovery of compensation for
damage or injury to persons or property shall be instituted within two years
after the cause of action accrued, and not after, except as provided in section
657-13.

����
(b)
�
No homeowners insurance policy issued or
renewed by a property and casualty insurer shall contain a provision that
reduces the time to file an action under this section.

����
As used in this subsection,
"property and casualty insurer" has the same meaning as in section
431:3-401.
"

����
SECTION 6.
�
In codifying the new sections added by
section 2 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.

����
SECTION
7
.
�
Statutory
material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION 8.
�
This Act shall take effect upon its approval
and shall apply to all policies of property and casualty insurance issued or
renewed on or after the effective date of this Act.

INTRODUCED BY:

_____________________________

Report Title:

Property
and Casualty Insurance; Homeowners Insurance; Pre- and Post-Disaster
Protections

Description:

Establishes
requirements for property and casualty insurers and policies for pre- and post-disaster
protections.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.