Hawaii condo owners starting to feel insurance rates increase

MILILANI, Hawaii (KHON2) — Many condo and townhouse owners are starting to pay up for the increased maintenance fees due to skyrocketing insurance costs. A KHON2 view contacted us through our “Report It” feature to share the “never-ending battle.”

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The Gardens at Launani Valley in Mililani has 238 units. Each owner received a letter from the association dated Aug. 27, saying they’ll all have to cover the 325% increase in insurance coverage for the complex, which is more than $570,000, due Oct. 1.

“I guess with the amount of money that this is, it’s kind of a lot that they want really on such a short notice,” said Miles Curtis.

KHON2 is waiting to hear back from the association for comment, but in a newsletter from June, the board does share that it’s anticipating a five-time increase in insurance costs and does state “we will have to do a special assessment to pay.”

“For me, the definition of assessment isn’t, ‘okay, well, by the time we do the assessment, we’re going to expect within 30 days,'” said Curtis.

Curtis’ portion comes out to a one-time payment of about $2,700. That’s on top of the $600 monthly maintenance fee.

“I do have some neighbors that are on fixed income,” said Curtis. So this is a, you know, a big ask or demand really.”

The Insurance Information Institute, or Triple I, said insurance rates in Hawaii and across the country have increased due to rising labor costs, materials and inflation. Insurance companies cite the Lahaina wildfires as one of the 28 disasters across the country last year which caused rates to go up.

However, Triple-I says a catastrophe like the Lahaina wildfire doesn’t immediately impact homeowners insurance premiums. And any rate increases have to be reviewed and approved by the state insurance division before being implemented.

On top of the assessment, Curtis said homeowners had to pay for a $900 plumbing upgrade at the beginning of the year.

“I can get that, you know, insurance rates go up, but then like, where does it stop?” said Curtis. “And it goes into I mean, just worrying about the family, like, you know, I don’t want to have to get two, two or three full time jobs.”