Almost every deal I work hits the same snag at some point. The home looks right, the price works, and then insurance shows up late in escrow and changes the math. More than once I've had a buyer under contract on a condo when the lender started asking about the association's master policy. Right now, two things are on my checklist before anyone writes an offer on Oahu: the new FEMA flood maps, and the state of the building's insurance and reserves.

The flood maps changed on June 10

FEMA's updated flood maps for Honolulu took effect June 10, 2026. Depending on the source, somewhere between about 3,500 and 3,700 parcels moved into a Special Flood Hazard Area for the first time, and the zones along nearly 100 miles of Oahu streams were redrawn. Hawaii Life's breakdown cites roughly 3,492 parcels from Hawaii REALTORS, while Spectrum News reported about 3,700.

Why it matters to you: if you're using federally backed financing (FHA, VA, USDA or conventional) and the property sits in one of those zones, your lender may require flood insurance. If you don't buy a policy within 45 days of the lender's notice, the lender can force-place one, and then you have no say in the cost or the coverage.

Since the maps changed, the first thing I do on any listing, mine or a buyer's, is pull the parcel up on the city's flood map viewer. It takes two minutes, and it's far better to learn the answer before you write an offer than in the middle of your inspection period.

There is some relief. Policies bought within 12 months of the map change can qualify for a Newly Mapped discount, a 70 percent break on the first $35,000 of building coverage and $10,000 of contents that phases out over time, and Oahu NFIP policyholders get a 10 percent discount through the city's Community Rating System. If you believe a map is wrong, you can ask FEMA for a Letter of Map Amendment or Revision, and the current map stays in effect while that's reviewed.

Condo insurance is a separate problem

Flood is only half of it. After the 2023 Maui wildfires, master policy premiums at some Hawaii condo associations jumped 300 percent or more in a single year, according to Hawaii Business Magazine's 2024 reporting. In that same story, American Savings Bank said it won't lend on buildings that lack 100 percent replacement cost coverage. Other lenders have their own rules, so I never assume.

The state stepped in last year. Senate Bill 1044, signed in July 2025, is a five-year stopgap. It lets the Hawaii Property Insurance Association write coverage for eligible condo buildings that private insurers won't cover, revives the Hawaii Hurricane Relief Fund so high-rises can get hurricane policies again, and seeds a low-cost loan program with $20 million in bonds for repairs like pipes, sprinklers and roofs. Buildings have to pass an inspection and be in insurable condition, so it favors well-maintained associations. If your building isn't one of them, that's information you want before closing, not after.

When I look at a condo for a buyer, I ask for the master policy certificate before I ask about the view. I've watched buyers get attached to a unit and only then learn that the association's coverage fell short of what their lender required. That is a painful place to be in the last week of escrow.

Reserves: the budget page nobody reads

A building's reserve study tells you whether the association has been saving for the big repairs or planning to bill owners when they come due. Lawmakers have been looking at tighter reserve study and disclosure rules (Senate Bill 2300 was introduced this session), so the rules may be shifting, and I'd rather you read the actual documents than count on a statute to protect you. A low monthly fee is the first thing buyers notice and the last thing I trust, because it often means the repairs are being deferred, not avoided.

My short checklist before an offer

  • The parcel's flood zone, before and after June 10, 2026
  • Your lender's written position on flood insurance, plus a quote
  • The master policy certificate, and whether it covers full replacement cost
  • Three years of premium history for the association
  • The latest reserve study: date, who prepared it, and percent funded
  • Any special assessments in the past five years, or planned

If you're selling, gather the same documents before you list. Buyers and lenders ask for them anyway, and a sale that stalls waiting on paperwork costs you more than the hour it takes to collect it.

Questions I get about this

Do I need flood insurance on a condo in one of the new zones?
It depends. With a federally backed loan and a building in a high-risk zone, your lender will probably require coverage, and condos can work differently from single family homes. I have the lender confirm in writing before the inspection period ends.

Can I still buy in a building with expensive insurance?
Yes, plenty of people do. I just want the real numbers first: the premium trend, the reserves, and whether your lender will finance that building at all.

What if I think the flood map is wrong?
You can request a Letter of Map Amendment or Revision from FEMA. The current map stays in place during the review, so build that timing into your plans.

This article is general information, not personalized legal, tax, insurance or financing advice. Flood maps, insurance programs and Hawaii statutes change, so confirm current specifics with your lender, insurance agent or attorney before you act.

Sources: Hawaii Life on the June 10, 2026 flood map changes; Spectrum News Hawaii; Honolulu DPP flood map information; Hawaii Business Magazine; Insurance Business on SB 1044; SB 2300 (2026).

Tony Kawaguchi, R(B), The Kawaguchi Group, eXp Realty. Hawaii broker, license RB-21841, 20+ years and $1B+ in Oahu sales, leading a team of 20+ agents. Contact me if you want help reading a building's financials before you make an offer.