UPC exiting home, condo and renters markets in Hawaii
The market withdrawal will take 13 months to play out, according to the Hawaii Department of Commerce and Consumer Affairs.
Universal Property & Casualty is leaving the home, condominium and renters insurance markets in Hawaii, according to the state’s Department of Commerce and Consumer Affairs (CCA).
The withdrawal is expected to take 13 months, and the last policies will be effective August 31, 2023, according to the state’s commerce department. Non-renewals will start with policies with anniversary dates of September 1, 2023.
Home policy non-renewals will impact around 1,500 insureds, and some have already started receiving notices, according to CCA. The greatest concentration of non-renewals is on Hawaii Island.
CCA urges UPC policyholders to contact their insurance agents to secure alternative coverage. For those that can’t find a new carrier, the state’s Hawaii Property Insurance Association (HPIA) is available as an insurer of last resort. However, HPIA policies are more expensive and typically provide less coverage than policies offered in voluntary markets, according to the nonprofit association.
This news comes on the heels of a number of other big moves in the U.S. property insurance, including State Farm and Allstate making big decisions regarding their positions in the California market, Farmers considering its position in Georgia and more companies slowing their business in Florida.
Driving a large portion of this market turbulence is inflation and its effect on construction material and labor costs, which in turn drive up claims costs and that eventually works out to higher rates.
According to Bill Martin, president and CEO of Plymouth Rock Home Assurance, the average costs for repairs have increased as much as 40% for some claims.
“Natural catastrophes might be a bit of a catalyst, but they are not the only thing playing on insurers,” Martin said. “The truth is that post-pandemic inflation would have happened with or without catastrophes. The catastrophes only exacerbate them because they create a kind of demand surge in addition to the supply chain issues and labor market challenges that are driving increases.”
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