Natasha Baldauf asked 7 months ago Aloha,
A friend of mine lost her home due to the wildfires in Maui. She recently got a renewal notice from her homeowner’s insurance company and with an increased policy premium. There is no structure on the property right now. Is there any reason they should not be able to decrease their coverage in order to lower the premium until their home is rebuilt? The rebuilding process could take 2-3 years.
Dear Natasha,
It’s kind of you to be helping your friend. We helped enact a law in CA that requires insurers to adjust limits down when there’s no longer a structure to insure. HI does not have that law, but the insurer should certainly do so in response to a request. Please review this guidance and perhaps you can draft a letter for your friend to send the insurer – https://uphelp.org/claim-guidance-publications/updating-your-home-insurance-after-a-loss-staying-protected-without-wasting-money/. We recommend keeping liability protection in place and some coverage for personal property as items get replaced.