HomeMy WebLinkAboutCOM 0397.014 2022-2024 P/GCMG
COMM.317
From: Les & Suzanne Frey '`
Sent: Monday, August 14, 2023 10:55 AMr`E'"'
To: Council Testimony .:=`a.
Subject: Resolution - c
I am writing this in regards to Resolution-223-23. It is urgent that the County Council pass this resolution. RE/urgent"-
that the State Legislature take up this issue of Homeowners Insurance in the next session.
With one swipe of the pen, Insurance Commissioner Ito has doomed the economy of the East side of the Big Island. In a
time when affordable housing is in crisis, he has just made the last affordable place to live in Hawaii, unaffordable. He
has added to my monthly payment$600.00. I was paying$1400./year for Universal Insurance.That was complete,
replacement coverage, $1000. deductible. It was affordable, it included hurricane coverage. Now I am forced to buy
insurance through HPIA at a cost of$5800/year,with a $3000. deductible, & no hurricane coverage. I have to secure
another policy at about$1000./year for hurricane coverage. I cannot afford this. My husband & I have worked all our
lives to have what we have, a modest home with an affordable mortgage. Now we stand a good chance of losing
everything. If we don't have insurance,we default on our mortgage. If we try to sell,we have to sell at a loss to
compensate for the cost of the insurance.And the bigger question,where would we go?We cannot afford a house in
the other areas. We cannot afford the rent. There are about 1000 homeowners who are affected by the withdrawal of
Universal Insurance.There are many, many more who have other insurance&it is just a matter of time till they also
withdraw coverage from this area. Whether a homeowner is working or retired,you cannot just produce an additional
$6000+ per year. Most of us are just getting by month to month.According to the website for HPIA,they claim they are
justified in raising the rates this high because we chose to live in Lava Zone 2. If they are allowed to get away with this,
Lava Zone 3 will be next, especially since Mauna Loa was rumbling this past year. However,from my research that I have
been able to do, if I live in Captain Cook, Lava Zone 2, I can insure an$850,000 home for approximately$2000/yr. So
why am I being charged$6000/yr in the same lava zone? Lava has not flowed in this area since 1840. If my home were in
Lava Zone 3, my insurance with State Farm would be$680/yr for full coverage without hurricane coverage.That makes
HPIA 10X the cost of State Farm. In the banking industry,this kind of discrimination to an area is called redlining.The
Federal Government passed regulations to prevent this & made it illegal. It is time for the State Legislature to do the
same for the insurance industry. Lave Zones were created for the scientists &County Civil Defense for a better
understanding of the needs for services on the Island, NOT for insurance companies to use as an excuse to extort money
from clients. If this isn't stopped, what's next?Will there be wildfire maps,tornado maps,flood maps that will make
almost every home uninsurable?
The time to act is now, before the economy on this Island suffers a severe decline as a result of this discrimination by the
insurance companies.
Respectfully,
Suzanne Frey
Resident, Hawaiin Shores
Comm. No. 1•14
Ref.To: QRef. Date !..1tOrivo
G 1 5 2023