The Hawaii Insurance Division (the “Division”) has recently released Memorandum 2026-7A, regarding Tropical Storm and Hurricane Lala insurance claims and coverage, applicable to all property insurers authorized to transact insurance in Hawaii. The key highlights are as follows:
- The Division expects insurers to handle claims arising from Lala promptly, fairly, and in accordance with Hawai’i law and the applicable insurance contract.
- The property’s location, the timing of the damage, and the actual cause of loss may all be relevant to determining which policy, coverage, or deductible applies.
- A hurricane watch or warning may be in effect even when the storm itself is officially classified as a tropical storm. Insurers should not treat these terms as interchangeable unless the applicable policy expressly does so.
- Damage should not automatically be characterized as hurricane, tropical storm, flood, or other damage solely based on the broader weather event.
- If coverage is denied, limited, or subject to a particular deductible, the insurer should identify the relevant policy provisions and clearly explain the factual and contractual basis for its determination.
- Where a policyholder has more than one potentially applicable policy and there is uncertainty regarding the cause of damage, insurers should evaluate the claim under the applicable policy terms and coordinate as appropriate. Consumers should not be unnecessarily placed in the middle of disputes between insurers regarding which policy responds.
- Insurers should maintain adequate records supporting coverage and deductible determinations arising from Lala.
Please note that this memorandum became effective upon issuance on August 26, 2026.
For any questions related to the above referenced memorandum in Hawaii, please contact Westmont Associates!