Committee votes to require agents to solicit homeowner improvement data every two years after underinsurance debate

The committee debated SB 2964 SD1, a bill proposing that homeowners insurers disclose replacement‑cost estimates and offer policyholders options to increase coverage if underinsured. Insurance Division witnesses and insurers urged caution and recommended a task force to analyze unintended market consequences. United Policyholders and wildfire survivors urged immediate action, citing widespread underinsurance after the Lahaina fires.

In decision making the chair offered an amendment that requires insurance agents to send a request for information to homeowners at least once every two years asking about improvements and their costs. If the homeowner supplies information, agents must forward it to insurers, which will then reevaluate the replacement‑cost estimate. The chair also proposed a $250 administrative fine per failure for agents who do not make the required request; the committee adopted the chair's amended approach and passed the measure with amendments, noting at least one reservation.

Insurance industry witnesses cautioned the committee that mandating insurer‑paid architectural valuations and immediate coverage increases could be costly and could affect market availability; carriers and the Insurance Division instead emphasized the value of a task force to include insurers, agents and consumer representatives. Proponents said improved disclosure and periodic solicitation of homeowner updates would reduce post‑disaster gaps between actual rebuild costs and insured amounts.