HI SB2961

Requires homeowners insurers to allow policyholders who suffer total losses during declared emergencies to use additional living expenses (ALE) benefits toward leasing temporary housing units, including recreational vehicles, manufactured homes, or tiny homes.

Mandates insurers issue advance payments of at least 4 months of ALE benefits within 10 business days of request following a total loss caused by a covered peril during a state of emergency.

Establishes a minimum 36-month duration for ALE benefits when a total loss occurs during a state of emergency, with required 6-month extensions available for delays caused by permitting issues, material shortages, labor shortages, or other factors beyond the insured's control.

Motivated by the August 2023 Maui wildfires, which destroyed thousands of homes and left many survivors still without permanent housing more than two years later.

Takes effect July 1, 2050, applying to all homeowners insurance policies issued or renewed on or after that date.