S.R. No. 16 Summary

• Requests homeowners insurers to establish a loss-control program beginning January 1, 2025, to reduce fire risk and mitigate damage to insured property from wildfire, lava, or both.

• Requires the program to offer premium discounts to policyholders who implement verified loss-control measures including removing flammable material and vegetation within certain perimeters of their property and using inflammable materials in construction or renovation.

• Directs the Insurance Commissioner to adopt rules for the program, including requirements for determining whether insured property was constructed or renovated with inflammable materials.

• Addresses high homeowners insurance markup rates in Hawaii from 1996-2021 and the August 2023 Maui wildfires that devastated Lahaina, noting many residents lacked insurance due to high premiums.

• Cites the "Miracle House" in Lahaina, which survived the wildfires by implementing loss-control measures, as evidence that such programs benefit both policyholders and insurers.