For many Maui condo buyers, the biggest surprise is not the price but the monthly cost. Association insurance premiums have climbed sharply across Hawaii, and that flows directly into HOA dues, reserve funding and, in some buildings, special assessments. Here is what is driving it, what the state has done about it, and how to evaluate a building before you buy.
Only a handful of insurers write condominium master policies in Hawaii, and many limit how much hurricane exposure they will take on any one building. Associations have had to fill the gap with surplus-lines carriers at higher rates and much higher deductibles. Reports in Hawaii media have described some association premiums rising several times over in a single renewal, driven by global reinsurance costs, hurricane risk, aging buildings and the losses from the August 2023 Maui wildfires.
The association's master policy covers the building and common areas. Each owner carries an HO-6 policy for the unit's interior, personal property, liability and loss assessment coverage. When the master policy has a large deductible, owners may be assessed for their share after a claim, so loss assessment coverage on your HO-6 matters. Read our guide to the HO-6 condo policy.
In July 2025 Hawaii enacted Act 296 to stabilize the condo insurance market. It:
These programs are designed as a multi-year bridge, not a permanent fix, so building condition and reserves remain the key to stable premiums.
Hawaii law (HRS 514B-148) requires condominium associations to budget for replacement reserves using either a percent-funded or a 30-year cash flow plan, with the reserve study reviewed regularly. A well-funded reserve means roofs, elevators, plumbing and painting can be paid for without surprise bills. A thinly funded reserve, or a building facing major repairs or a large insurance deductible, is where special assessments come from.
Signs to look for in the documents: a low percent funded, large deferred projects in the reserve study, minutes discussing loans or assessments, recent jumps in dues, and insurance deductibles that the reserves could not cover.
Lenders review the condo project as well as the buyer. Under Fannie Mae and Freddie Mac rules, projects with critical repair needs, inadequate reserve allocations (generally less than 10% of the budget) or unfunded major repairs can be ineligible for conventional loans until the issues are resolved. Some Maui condos are also non-warrantable for reasons such as high short-term rental use or a hotel-style rental program. Non-warrantable condos can still be financed, but usually with larger down payments and higher rates through portfolio lenders. Ask your lender to review the project early.
Buyers and lenders now read association documents closely. Having the budget, reserve study, insurance summary and minutes ready when you list, and being upfront about any assessments, helps keep a sale together. If your association has an assessment pending, we will help you decide how to handle it in pricing and negotiation.
We help buyers compare HOA dues, reserves and insurance across Maui buildings, not just prices.
Call or text (808) 217-8832 or send us a message.
Related: The HO-6 condo policy | Flood zones and sea level rise | Maui condo buildings index | Buyer resources | Seller resources
Updated October 2026. Sources: Act 296, Session Laws of Hawaii 2025 (SB1044); HRS 514B-148; Fannie Mae and Freddie Mac condominium project standards; Honolulu Star-Advertiser and West Hawaii Today reporting. General information only; consult your insurance agent and lender.