Homeowner's insurance again available in lava area
Act 32, signed into law
"This is an opportunity to safeguard against unexpected property damage," Hawaii Insurance Commissioner
In September, after the
"As the lava flow approached
Homeowner's insurance from insurance carriers was not available, and the HPIA put a moratorium on new policies.
The Insurance Division contacted insurance companies and urged them to renew existing policyholders.
"For the most part, they were good corporate citizens and retained their customers," Ito said.
The HPIA also continued to renew policies for existing customers with homeowner's insurance.
Ito suggests homeowners contact their insurance agents and shop for a policy if they don't have one. The HPIA is an option but cheaper policies may be available.
However, other insurance companies are not legally required to provide insurance coverage to homeowners in those lava zones.
The HPIA was created in 1991 in response to the unavailability of insurance during the lava flow that destroyed homes in Kalapana.
Although all insurers registered in the state are members of the HPIA, the association itself acts as an insurer of last resort under the state's insurance code.
Under Act 32, should another lava flow threaten homes, the HPIA could potentially place another moratorium on the issuance of new policies, and homeowners would be subject to a six-month waiting period.
For more information go to cca.hawaii.gov/ins or call the Insurance Division at 586-2790.
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