HI SB2964

Requires homeowners insurers to provide policyholders with an annual written replacement cost estimate at policy renewal, clearly stating whether current dwelling coverage limits will cover full replacement costs.

Mandates that if coverage limits are below replacement cost, insurers must offer policyholders the option to purchase additional coverage to match replacement costs, with the offer remaining open for 30 days.

Requires replacement cost estimates to be property-specific, based on current local labor and material costs, and include detailed components such as labor, materials, demolition, debris removal, permits, and architectural fees.

Obligates insurers to maintain documentation supporting replacement cost estimates and policyholder coverage decisions for at least five years after policy expiration.

Classifies failure to comply with these disclosure and offer requirements as an unfair or deceptive act or practice in the business of insurance.