The Hawaii Property Insurance Association has placed a moratorium on new insurance policies in lower Puna as a result of the June 27 lava flow.
The state Legislature created the HPIA in 1991 to provide insurance coverage for properties in areas, such as high-risk lava zones, where private insurance isn’t provided.
As of Monday, the association stopped providing new or increased coverage for properties south and east of Ainaloa and Hawaiian Paradise Park, HPIA said in a written statement provided to Stephens Media Hawaii.
“Existing Hawaii Property Insurance Association policyholders whose premiums are current should be assured their policies will not be canceled or non-renewed,” the statement said.
Attempts to reach HPIA officials for additional comment were unsuccessful, and it wasn’t immediately clear how many properties in lower Puna have coverage through the association.
A Honolulu Advertiser article from 2008 said the association provided more than 2,400 policies in the highest-risk lava zones in Puna and Ka‘u.
The HPIA said the moratorium follows its underwriting standards that says no new or increased coverage shall be provided when the “property to be insured is within any area that a civil authority has determined to be endangered by an active lava flow.”
The suspension will remain in effect while lava continues to threaten the area, the association said.
As of Friday, the lava flow was just over 2 miles from Pahoa Village Road and 1.5 miles from Apaa Road.
The flow advanced 153 yards to the northeast, and was estimated to be within 21 days from reaching Highway 130, within 18 days from Pahoa Village Road, and within 13 days from Apaa Road.
The estimated time it will take to reach the roads has changed several times and is determined based on activity being observed.
Mary Correa, state Department of Education’s Ka‘u-Keaau-Pahoa Complex superintendent, sent a letter to parents Thursday regarding DOE’s plan for students should lava reach the highway.
On the north side of the flow, students will be rerouted to the Keaau Complex.
“Students that reside south of the flow will remain in their home schools if those facilities are not negatively impacted,” the letter said. “Plans are also being considered should the flow change in direction or should the air quality become compromised in any of the three schools located to the south of the flow.”
Colin M. Stewart contributed to this report.
Email Tom Callis at tcallis@hawaiitribune-herald.com.