Key Takeaways
- Washington law requires insurers to provide cancellation and non-renewal notices at least 45 days before expiration
- The Washington FAIR Plan provides basic property coverage for high-risk properties that cannot obtain coverage in the voluntary market
- Washington requires specific earthquake disclosure to homeowners, explaining coverage availability and exclusions
- Insurers must provide written explanation when denying or canceling coverage
- Washington prohibits unfair discrimination in property insurance underwriting
Washington Homeowners Insurance Requirements
Washington has specific property insurance regulations that protect consumers and ensure adequate coverage availability.
Cancellation and Non-Renewal Requirements
Washington has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 10 days |
| Other reasons (during first 60 days) | 10 days |
| After first 60 days | 45 days |
| Fraud or material misrepresentation | 45 days |
Non-Renewal Notice Requirements
| Timeframe | Requirement |
|---|---|
| Standard Non-Renewal | 45 days before expiration |
| Reason Required | Must state specific reason |
| Written Notice | Must be in writing |
What Insurers Must Include
When canceling or non-renewing, insurers must provide:
- Specific reason for the action
- Effective date
- Information about FAIR Plan availability (if applicable)
- Consumer rights information
Washington FAIR Plan
The Washington FAIR Plan provides basic property insurance for high-risk properties:
What FAIR Plan Covers
| Coverage | Included |
|---|---|
| Fire and Lightning | Yes |
| Internal Explosion | Yes |
| Smoke Damage | Yes |
| Vandalism | Optional |
| Extended Coverage | Optional |
| Liability | No (separate policy needed) |
When FAIR Plan Is Used
- Property located in high-risk areas
- Property has been declined by voluntary market insurers
- Property doesn't meet standard underwriting guidelines
- After major disasters when voluntary market tightens
Important: FAIR Plan is a last resort, not a first choice. It typically costs more and provides less coverage than voluntary market policies.
How to Access FAIR Plan
- Attempt to obtain coverage through voluntary market
- If declined, apply through FAIR Plan
- FAIR Plan must accept eligible properties
- Coverage may be more limited and expensive
Earthquake Insurance Disclosure
Washington has specific earthquake disclosure requirements:
Mandatory Disclosure
Washington requires insurers to:
- Disclose that standard homeowners policies do NOT cover earthquake damage
- Explain how earthquake coverage can be obtained
- Provide this disclosure in writing
Earthquake Coverage Options
| Option | Description |
|---|---|
| Endorsement | Add to homeowners policy |
| Standalone Policy | Separate earthquake policy |
| High Deductibles | Usually 10-25% of dwelling limit |
Why Disclosure Matters
Washington is in a seismically active zone:
- Cascadia Subduction Zone threat
- Seattle Fault Zone
- Other fault systems
- Historical significant earthquakes
Exam Tip: Remember that Washington requires earthquake disclosure because standard homeowners policies exclude earthquake damage. This is a consumer protection requirement.
Flood Insurance
- Standard property policies exclude flood damage
- National Flood Insurance Program (NFIP) provides coverage
- Agents should disclose flood insurance availability
- Many Washington properties are in flood zones
How many days notice must a Washington insurer provide for non-renewal of a homeowners policy?
What must Washington insurers disclose about earthquake coverage?
What is the purpose of the Washington FAIR Plan?