COMMISSIONER’S MEMORANDUM 2026-7A: TROPICAL STORM AND HURRICANE LALA CLAIMS
STATE OF HAWAII | KA MOKU ʻĀINA O HAWAIʻI
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
KA ʻOIHANA PILI KĀLEPA
INSURANCE DIVISION
August 26, 2026
MEMORANDUM 2026-7A
To: All Property Insurers Authorized to Transact Insurance in the State of Hawaii
From: Scott K. Saiki, Insurance Commissioner
Subject: Tropical Storm and Hurricane Lala – Property Insurance Claims and Applicable Coverage
The Insurance Division issues this Memorandum following Tropical Storm and Hurricane Lala and the resulting wind, rain, flooding, and other damage reported throughout the State.
The Division recognizes that the type of insurance coverage, applicable deductible, and other policy provisions may differ depending upon the cause, timing, and location of a particular loss. Lala’s classification changed during the event, and watches and warnings were issued at different times for different islands.
For reference, the Division has attached the Tropical Cyclone Lala: Insurance Timeline as Attachment A. Insurers should also consult with the official advisories issued by the National Hurricane Center, Central Pacific Hurricane Center, and National Weather Service for the precise timing and geographic scope of watches and warnings.
Please note the distinction between the “State of Hawai’i” and the “County of Hawai’i” to avoid incorrect policy and coverage determinations as a result of using the term “Hawai’i” interchangeably. The County of Hawai’i is a separate municipal government and is also referred to as Hawai’i Island and the Big Island.
Claims Handling Expectations
The Division expects insurers to handle claims arising from Lala promptly, fairly, and in accordance with Hawai’i law and the applicable insurance contract.
- Evaluate each claim based on the facts of the loss. 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.
- Apply the policy language as written. The existence of a Hurricane Watch, Hurricane Warning, or named storm does not, by itself, establish which coverage or deductible applies to a particular loss.
- Distinguish storm classification from watches and warnings. 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.
- Evaluate causation on a claim-specific basis. Damage should not automatically be characterized as hurricane, tropical storm, flood, or other damage solely based on the broader weather event.
- Clearly explain coverage determinations. 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.
Multiple Policies and Coverages
Consumers may maintain separate homeowners, hurricane, flood, renters, condominium, or other property coverage. These coverages are not interchangeable.
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 may ultimately respond.
Policyholders also should not be discouraged from submitting a claim merely because another policy or insurer may ultimately be responsible for some or all of the loss.
Documentation
Insurers should maintain adequate records supporting coverage and deductible determinations arising from Lala, including, where applicable:
- Date and approximate time of loss;
- Location of the insured property;
- Reported and determined cause of loss;
- Applicable policy and endorsements;
- Applicable deductible;
- Relevant storm classification and governmental watch or warning;
- Inspection findings and other evidence relating to causation; and
- The basis for any denial, limitation of coverage, or deductible determination.
The Insurance Division will monitor complaints and inquiries arising from Lala and may request information from insurers regarding claims handling, coverage determinations, and the application of deductibles.
Please contact the Insurance Division at [email protected] or call 1-844-808-3222 if you have any questions.
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