Hawaii lawmakers passed a first-of-its-kind resolution last week calling for property insurers in the state to recoup rising costs by taking the fossil fuel industry to court instead of hiking premiums for homeowners.

The resolution, which was adopted in its final form on Wednesday, states that Big Oil “knowingly engaged in misleading and deceptive practices regarding the connection between their products and climate change.” Their operations, lawmakers concluded, “have contributed significantly to the destabilization of the state’s insurance industry, particularly in the property and casualty insurance sector.”

Why It Matters

While the average annual cost of home insurance in Hawaii, at $610, is significantly lower than the national average of $2,110, according to NerdWallet, premiums have been rising significantly over the past couple of years.

After the devastating 2023 Maui wildfires, which killed more than 111 people, many homeowners in the state reported facing increases of tens of thousands of dollars as insurers tried to recoup losses. Others were told that their policy, once expired, would have not been renewed.

Should insurers in the state do as lawmakers urge them to, suing fossil fuel giants over their losses, homeowners in Hawaii could avoid the brunt of premium increases, though it is unclear whether this would discourage carriers from cutting coverage in the state.

What To Know

The resolution—SCR198 SD1—allows insurers in Hawaii to pursue subrogation claims against “polluters” held responsible for the worsening of the climate crisis, which is making extreme weather events more frequent and more severe in the state and other vulnerable parts of the union.

Through these claims, carriers should be able to recover the increased costs caused by natural disasters—such as the 2023 Maui wildfires—which caused an estimated $5.5 billion in damages.

The legislation recognizes that increasing carbon emissions are worsening weather events, including hurricanes and droughts, and destabilizing Hawaii’s climate, as well as its property insurance sector. It also states that “responsible polluters in the fossil fuel industry” have been well aware of the impact of their activities on the climate, but have tried to deflect and wriggle out of accountability.

Based on these facts, Hawaii lawmakers believe that it should not be homeowners shouldering the added costs caused by climate change-driven events, but those same polluters who have exacerbated climate-related harms.

Insurers have previously sued entities considered to have played a significant part in the opioid epidemic, Big Tobacco companies, and other major parties responsible for widespread damages affecting insurance premiums.

According to Hawaii lawmakers, they should now do the same with Big Oil, making sure they pay for the harms caused to homeowners and property insurance in the state so that “the burden of financial loss does not fall solely on policyholders and taxpayers.”

Newsweek contacted the Hawaii Insurance Division and Sen. Chris Lee for comment by email on Tuesday morning.

What People Are Saying

In March, Hawaii Sen. Chris Lee, a Democrat who sponsored the bill introduced in the state Senate, said: “Our people, our families and our businesses are now paying the price, and the cost of insurance is skyrocketing. It seems entirely natural to have our insurance companies recover costs from those who knowingly contributed to making those conditions worse and driving these events.”

The resolution passed last week stated: “Hawaii has a compelling state interest in protecting its citizens from climate disasters, extreme weather events attributable to climate change, and harms resulting from long-term changes to the climate system, with protection including affordable access to a functioning insurance market in the State; and the State maintains a compelling interest in protecting consumers from misleading and deceptive practices.

“Now, therefore, be it resolved by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the House of Representatives concurring, that this body encourages Hawaii insurers and the Hawaii Property Insurance Association to reduce insurance costs on local residents by pursuing subrogation claims against polluters who knowingly engaged in misleading and deceptive practices regarding the connection between their products and climate change.”

The Center for Climate Integrity wrote in a report on the resolution: “This insurance resolution passed by the Hawai’i legislature can be a model for communities across the country struggling with growing housing and cost of living crises that are being supercharged by climate disasters. Big Oil predicted this outcome decades ago, but opted to bury the science in order to continue making billions of dollars a year. These companies that profited from lying should be the ones paying for the consequences, not everyday Americans.”

What Happens Next

The resolution could be a game changer for homeowners in Hawaii, who are facing likely property insurance premium increases this year.

Insurify expects home insurance rates in Hawaii to climb by 15 percent or more in Hawaii by the end of the year, with the Trump administration’s tariffs playing a role in driving premiums even higher than previously estimated.

Other states are thinking of making the fossil fuel industry pay for rising home insurance costs. In California, which was hit by devastating wildfires in January, lawmakers are considering legislation that would allow insurers and injured parties to recover losses caused by climate disasters from Big Oil.