Escalating climate disasters could make homes uninsurable, new report warns

Hawaiʻi is facing a rapidly escalating insurance crisis driven by climate change, aging housing, and a sharp retreat by private insurers, according to a new report released by the Hawaiʻi Appleseed Center for Law & Economic Justice.

The analysis, “Who Pays for Climate Disasters? Case Studies on Regulatory Responses to Climate Change-Related Disasters,” concluded that Hawaiʻi’s property insurance market—particularly for condominiums—is becoming increasingly unstable. Nonrenewals across the state jumped 216 percent between 2018 and 2023, while premiums for homeowners rose an average of 12 percent from 2021–2024. Condominium associations saw even sharper increases, averaging 16 percent, with some buildings reporting fee hikes of more than $2,000 per unit.

Appleseed Executive Director Will White called the situation a “flashing red light.”

“The question is no longer if another major climate disaster will strike Hawaiʻi, but when,” White said. “Our report shows that our current financial and regulatory systems are unprepared. If we do not act decisively, the cost of recovery will fall disproportionately on those least able to bear it—working families, kupuna and fixed-income households.”

Drawing on national and local insurance data, the report warns that Hawaiʻi is being hit from multiple directions.