HRS §431:6-309

Appraisal and insurance rules for mortgaged property

Read the official text at capitol.hawaii.gov ↗

This section says that when you get a mortgage or buy a contract for a property, the property's value must be set by a qualified appraiser. You must also keep the buildings on the mortgaged property insured against fire for the lender's benefit, for at least the amount you still owe or the property's insurable value, whichever is less. A lender cannot give you a loan secured by one piece of property if the total loan is more than $250,000 or more than what is allowed by another law, whichever is greater.

borrowerscondominium associationscondominium ownerscontractorsdevelopersfinancial institutionshomebuyershomeownersmortgage lendersreal estate agents

The statute, as written — Appraisal; insurance; limit

A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.

(a) The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquiring of a mortgage loan or investing in a contract for the deed thereon. (b) Buildings and other improvements located on the mortgaged premises shall be kept insured for the benefit of the mortgagee against loss or damage from fire in an amount not less than the unpaid balance of the obligation, or the insurable value of the property, whichever is the lesser. (c) An insurer shall not make or acquire a loan or loans upon the security of any one parcel of real property in an aggregate amount in excess of $250,000 or more than the amount permissible under section 431:6-105, whichever is the greater.

Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§431:6-105 Limit on how much an insurer can invest in one borrower

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.