A year and a half ago, Maui faced an unimaginable loss with devastating wildfires. This heartbreak of 2023 has left a lasting impact on all of us in Hawaii. Today, as California confronts similar challenges, we’re reminded of how fragile life can be. These events serve as powerful reminders to cherish what we have and take proactive steps to protect it. We have many clients, friends, and family in CA. We pray for their fast recovery.
Rising Insurance Costs in 2024
This past year brought significant changes to the insurance landscape. Natural disasters have stretched the insurance industry thin. According to the First Street Foundation, nearly 24 million homes across the country are at risk for wind damage, 12 million for flooding, and 4.4 million for wildfires. Hawaii homeowners, in particular, felt the effects, with condominium master insurance premiums rising by an eye-popping 300-500%! This led to increased maintenance fees and unexpected special assessments for property owners, adding financial stress to many property owners. These stark numbers highlight the urgent need for collaborative and systemic solutions.
Insights from Local Experts
Recently, we had the privilege of speaking with Sue Savio, President of the Hawaii Independent Insurance Agents Association website link here. Sue shared that while Hawaii’s insurance rates began stabilizing late in 2024—some dropping as much as 50% (after 300- 500% increase)—California’s wildfires could reverse this progress. Drawing on lessons from Hurricane Iniki’s aftermath in 1992, she emphasized how critical a calm year is for the continued recovery of our insurance market. She said the insurance market took more than two years to stabilize after Iniki and heavily emphasized the importance of reviewing the insurance coverage amount, as many have become outdated. Sue told us to expect $400/sqft to rebuild a house should we lose it to catastrophe in Hawaii. That is certainly good advice.
Maui’s Journey Toward Healing
In the wake of the August 2023 wildfires, Maui has launched a recovery effort. With over $1.6 billion in federal aid, the county’s Long-Term Recovery Plan focuses on housing, infrastructure, and economic revival. FEMA’s commitment to extending housing assistance through 2026 underscores the immense effort required to rebuild communities like Lahaina. www.mauirecovers.org
Looking forward, Governor Josh Green’s advisory panel has proposed a $2 billion plan to prepare Hawaii for future natural disasters. Recommendations include:
- Fortifying homes against hurricanes.
- Expanding Firewise community programs to reduce wildfire risks.
- Removing invasive plants that fuel fires.
- Establishing a State Fire Marshal Office and a Hawai‘i Resilience Office.
These measures promise to build a safer, stronger Hawaii for generations to come.
Coming Together as a Community
Addressing these challenges will require all of us—residents, policymakers, and insurers—to work together. Collaboration and awareness are vital to protecting our homes and preserving the unique way of life we cherish.
For resources and updates on disaster preparedness and recovery, visit Maui Recovers or the Hawaii Climate Advisory Team.
Let’s continue to stand and walk forward together, supporting one another in this season of recovery and hope, remembering to spread some ALOHA along the way.
