Washington requires auto liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage. A $60,000 certificate of deposit or liability bond can also meet the financial responsibility law. Those floors are the legal minimum, not a recommendation after a serious crash.

What do the $25,000/$50,000/$10,000 numbers pay?

The figures come from the Washington State Department of Licensing and from RCW 46.29.090, which the mandatory insurance law in RCW 46.30.020 points to. The Office of the Insurance Commissioner (OIC) publishes the same limits. Bodily injury liability pays people you injure, or the family of someone who dies, if you are responsible for a crash. The first number is the most the policy will pay for one person. The second is the most it will pay for everyone hurt in that accident, combined. Property damage liability pays for damage you cause to someone else's car or other property, up to $10,000 at the legal minimum.

Those floors are low compared with the cost of a serious injury on I-5, I-90, or I-405, or damage to a newer vehicle. If a claim exceeds your limits, you can be personally responsible for the rest. The OIC encourages drivers to talk with a licensed agent about higher limits, and about an umbrella policy if you have a house or savings to protect.

Most people meet the law with a liability policy from a company authorized in Washington. Other options exist, and they are narrow:

• A certificate of deposit of at least $60,000, arranged through the Department of Licensing.
• A liability bond of at least $60,000, filed by a surety authorized to do business in Washington.
• Self-insurance, if you have 26 or more vehicles and DOL approves it.

If you drive a vehicle registered in another state, you need the insurance that state requires, and you have to be able to show proof if an officer asks. Washington's mandatory insurance law does not apply to certain registered vehicles, including mopeds, specially licensed horseless carriages more than 40 years old, state or publicly owned vehicles, and common or contract carriers regulated by the Utilities and Transportation Commission. You can still be held responsible for injuries or damage you cause with those vehicles.

How do you show proof, and what happens if you drive uninsured?

Any time you drive in Washington, you need to be ready to show proof of financial responsibility. For a standard policy, that is the insurance identification card your company issues. DOL says the card has to include the company name, policy number, effective and expiration dates, and either a description of the insured vehicles or the name of the insured driver. You can show a card on a phone, but the officer may look only at the proof of insurance. Failing to show proof is a traffic infraction. Knowingly giving false evidence of coverage is a misdemeanor. DOL warns that driving without the required insurance can bring a fine of $550 or more, and that if you are at fault in a collision and do not have insurance, your license may be suspended if you fail to pay the resulting damages.

If your insurance company does not renew your auto policy, the OIC says it has to give you 20 days' advance notice and a reason. If it cancels the policy for nonpayment, it has to give 10 days' written notice. Put a replacement policy in force before you drop the old one, so you are not left driving uninsured.

When you compare quotes, ask each licensed agent to write down:

• The liability limits, not only a monthly price.
• Whether underinsured motorist coverage matches those limits, or has been rejected in writing.
• Personal injury protection, collision, and comprehensive, if you want those optional coverages.
• Any deductible, and how a rental car or glass claim would be handled.

A low premium with only the legal minimum can still leave you short after a crash. A higher premium is not automatically a better policy either. Compare the same limits, deductibles, and optional coverages, then decide.

If you are moving to Washington, buy a policy that meets these minimums before you title and register the vehicle. New residents have 30 days after moving to get a Washington driver license and to register the vehicle, and DOL requires the Washington license first.

FAQ

What auto liability limits does Washington require?

At least $25,000 per person and $50,000 per accident for bodily injury or death, and $10,000 for property damage, as set out in RCW 46.29.090 and explained by DOL and the OIC.

Is there any way to drive legally without a regular auto policy?

Yes, but the alternatives are limited. You can post a $60,000 certificate of deposit with DOL, file a $60,000 liability bond, or, if you have 26 or more vehicles, apply to self-insure. Each option has its own proof requirements.

Do I have to carry proof of insurance in the car?

Yes. Whenever you drive in Washington, you need to be able to show an insurance identification card or the equivalent proof for a bond, deposit, or self-insurance certificate. Failing to show proof is a traffic infraction.

Are the legal minimums enough after a serious crash?

They meet the law, but they may not meet the cost of a serious injury or a newer vehicle. Amounts above the minimum are a personal decision. A licensed local agent can quote higher limits and an umbrella policy.

Next step

Ask a licensed local agent to review your declarations page against the $25,000/$50,000/$10,000 minimums, and to quote higher liability and underinsured motorist limits. If you are registering a vehicle in Washington for the first time, have the policy in force before you go to a vehicle licensing office.

Sources: Washington Office of the Insurance Commissioner, mandatory auto insurance law; Washington State Department of Licensing, mandatory insurance; RCW 46.29.090; RCW 46.30.020.

A standard Washington homeowners or renters policy does not cover earthquake damage. Earthquake insurance is coverage you add as an endorsement or buy as a separate policy. Deductibles are often 10% to 25% of the building limit, and the policy may exclude flood, tidal waves, or tsunamis even when an earthquake causes them.

What does earthquake insurance cover, and what does it leave out?

Washington sits on the Cascadia subduction zone and has other faults, including the Seattle Fault. The Office of the Insurance Commissioner treats earthquake insurance as a separate decision from a standard home policy. According to the OIC, the coverage can help pay to repair the home, to cover damaged personal property, to remove debris, and to pay extra living costs while you wait for repairs or rebuilding. It may, depending on the policy, also help with higher costs to meet current building codes, costs to stabilize land under the home, and damage to other structures that are not attached to the house, such as a garage or shed.

The OIC is equally clear about what earthquake insurance does not cover, or may not cover:

• Fire damage, which a homeowners policy may cover even if an earthquake starts the fire, subject to that policy's terms.
• Land itself, and vehicles.
• Damage that happened before the earthquake.
• Water damage from outside the home.
• Damage from landslides, settling ground, mudflows, or earth rising, sinking, or contracting.
• Floods, tidal waves, or tsunamis, even when an earthquake causes them, unless the policy specifically says otherwise.

Those last points matter in Puget Sound and along the Pacific coast. An earthquake policy and a flood policy are different products. If a quake-caused tsunami or flood is excluded from the earthquake policy, a flood policy is the place to ask about that risk, and even a flood policy has its own limits and waiting periods.

Deductibles work differently than a typical $1,000 or $2,500 homeowners deductible. The OIC says earthquake deductibles are usually 10% to 25% of the maximum amount the insurance will pay for the building. The policy pays only for damage that costs more than the deductible. There may be separate deductibles for the building, for what is inside it, and for unattached structures such as garages, sheds, driveways, or retaining walls. On a house insured for $600,000, a 10% building deductible is $60,000, and a 25% deductible is $150,000. Confirm the percentage and the base it applies to on the declarations page, in writing.

After an earthquake, the OIC says you usually need to wait a while before you can buy the coverage. That is why shopping only after a large event is a poor plan. Some insurers inspect the property first. They may require bolting the home to its foundation, bracing interior walls, or strapping a water heater and other fixtures. Those retrofit steps can affect both eligibility and price. Ask what the insurer requires before you apply, and keep any invoices if work is completed.

How to compare a quote, and how it fits with flood and fire coverage

Earthquake insurance is sold by licensed insurers and agents, not by a Washington state earthquake authority. Quotes and underwriting rules differ. When you compare, ask each licensed agent to write down:

• Whether the coverage is an endorsement on your homeowners or renters policy, or a stand-alone policy.
• The building, contents, and unattached-structure limits, and each deductible percentage or amount.
• Whether additional living expense, debris removal, and building-code upgrades are included, and at what sub-limits.
• Whether landslide, flood, or tsunami is excluded.
• Any retrofit or inspection requirements, and how soon coverage would start.

Read the policy, not only the brochure. The OIC's homeowners guide also notes that not all companies offer earthquake coverage, and that some may require you to strap water heaters or take other steps. Fire following an earthquake is usually a homeowners question, not an earthquake-policy question. Flood and tsunami are usually a flood-policy question. A licensed agent who can look at all three is in a better position to point out gaps than a quote that covers only one peril.

If you are buying a house, ask about earthquake insurance before closing, especially if a lender or a condominium association has its own requirements. A last-minute application can run into inspection delays. If you already have a policy, review the deductible and exclusions at renewal, because a percentage deductible grows as you raise the building limit.

Work only with a licensed insurer and a licensed agent. If a quote looks far below every other offer, or someone wants cash outside normal channels, call the OIC at 800-562-6900 before you pay.

FAQ

Does a standard Washington homeowners policy cover earthquake damage?

No. The Office of the Insurance Commissioner treats earthquake insurance as coverage you add to a homeowners or renters policy, or buy separately.

How large is a typical earthquake deductible?

The OIC says deductibles are usually 10% to 25% of the maximum amount the insurance will pay for the building. There may be separate deductibles for contents and unattached structures. The policy pays only after the damage exceeds the deductible.

Will an earthquake policy pay if a quake causes a tsunami or flood?

It might not. The OIC warns that earthquake insurance might not cover floods, tidal waves, or tsunamis, even when an earthquake causes them. Ask your agent and read the exclusions. A separate flood policy is a different product.

Can I buy earthquake insurance right after a large quake?

The OIC says that after an earthquake, you usually need to wait a while before you can buy the coverage. Some insurers also inspect the property or require retrofits first.

Next step

Ask a licensed local agent to review your homeowners or renters policy for the earthquake exclusion, to quote separate earthquake coverage including the deductible percentage, and to explain how that policy would work with flood and fire coverage.

Sources: Washington Office of the Insurance Commissioner, earthquake insurance; Washington OIC, A Consumer's Guide to Homeowner Insurance (PDF); Washington Office of the Insurance Commissioner, flood insurance.

A typical Washington homeowners or renters policy excludes flood damage. You need a separate flood policy, often through the National Flood Insurance Program (NFIP). For a standard NFIP policy, coverage on the building usually begins 30 days after the policy is written, unless the policy is required for a mortgage.

What counts as a flood, and who needs a separate policy?

The Office of the Insurance Commissioner describes a flood, in insurance terms, as excessive water on land that is usually dry, affecting two or more acres or two or more properties. Flood water can reach a home from heavy rain, overflowing inland or tidal waters, overflowing storm drains, or mudflows. That is different from a burst pipe inside the house, which a homeowners policy may treat as a sudden water-damage claim, subject to the policy's terms. Sewer backup is also different: the OIC notes that sewer backup is not covered by a standard home policy and can be added as an optional endorsement.

Washington has river flooding, Puget Sound coastal flooding, and heavy atmospheric-river storms. FEMA has said that nearly one-third of flood claims occur outside designated high-risk areas. Damaged drainage, a broken water main, or a failed levee can flood a house that is not in a mapped Special Flood Hazard Area. If you are buying property in a high-risk flood zone, a mortgage lender will likely require flood insurance. Living outside a high-risk zone does not mean a flood policy is unused. Without it, repairs come out of pocket.

A landlord's policy, if you rent, covers the building, not your belongings. A standard renters policy also excludes flood. Renters who want flood protection need a separate flood policy for personal property, which the OIC says may be an NFIP renters policy or, in some cases, other coverage arranged through an agent. For vehicles, liability-only auto insurance does not pay for flood damage; comprehensive coverage is the auto coverage that can apply, and it does not cover personal items left in the car.

Standard NFIP limits, as the OIC lists them, are:

• For a home: $250,000 on the building and $100,000 on personal property inside it. Detached buildings and their contents are not covered under that standard structure.
• For a business: $500,000 on a building and $500,000 on contents.

If those caps are too low for the property, an agent can discuss excess flood coverage. NFIP is not the only market. Private flood insurance also exists. The OIC notes that if you have a policy from a surplus-line insurer, coverage usually starts immediately, which is different from the usual NFIP waiting period.

The 30-day wait, and how to check your flood risk

For National Flood Insurance Program policies, the OIC states that coverage starts 30 days after the policy is written, unless the policy is required for a mortgage. That wait is why it is a poor plan to shop for a flood policy only when a forecast looks bad. If you are closing on a loan that requires flood insurance, ask the agent and the lender, in writing, when coverage will start. FEMA's Flood Map Service Center and FloodSmart can show whether a property sits in a mapped high-risk area, but a map is not a policy, and maps change.

The OIC's homeowners guide is blunt: your homeowner policy will not cover flooding, and you have to buy flood insurance separately. It covers physical losses caused by flood, flood-related erosion, and abnormal tidal surges. You can buy it through an agent or through the NFIP at 1-888-356-6329 or FloodSmart.gov.

Before you buy or renew, sit down with a licensed local agent and review:

• Whether your current homeowners or renters policy has any water-related endorsements, and what they still exclude.
• Whether a flood policy would be written through the NFIP or the private market, and when coverage would start.
• Building and contents limits, deductibles, and whether a detached garage or shed would be covered.
• How a mortgage-required policy is handled at closing, so there is no gap.

Earthquakes and floods are easy to mix up after a coastal quake. A standard homeowners policy and a separate earthquake policy may still exclude flood, tidal waves, or tsunamis, even when an earthquake causes them. Ask the agent about that exclusion in plain language, and read the policy.

Work only with a licensed insurer and a licensed agent. If a quote looks far below every other offer, or someone wants cash outside normal channels, call the OIC at 800-562-6900 before you pay.

FAQ

Does a standard Washington homeowners policy cover flood damage?

No. The Office of the Insurance Commissioner and its homeowners guide both state that a typical home policy excludes flooding. A separate flood policy is required for that protection.

When does NFIP coverage start?

For standard NFIP policies, coverage on the building usually begins 30 days after the policy is written, unless the policy is required for a mortgage. Some surplus-line flood policies start immediately. Confirm the start date in writing.

If my house is not in a high-risk flood zone, do I still need a flood policy?

A lender may not require it, but FEMA has reported that a large share of flood claims occur outside high-risk areas. Whether to buy a policy is a personal decision to review with a licensed agent and a current flood map.

Are my belongings covered if I rent?

Not by the landlord's building policy, and not by a standard renters policy, which also excludes flood. A separate flood policy for personal property is the usual way to cover belongings.

Next step

Ask a licensed local agent to review your homeowners or renters policy for the flood exclusion, to check current FEMA flood maps for your address, and to quote an NFIP or private flood policy, including the start date and the waiting period.

Sources: Washington Office of the Insurance Commissioner, flood insurance; Washington OIC, A Consumer's Guide to Homeowner Insurance (PDF); National Flood Insurance Program, FloodSmart; FEMA Flood Map Service Center.

Washington consumers can file an insurance complaint with the Office of the Insurance Commissioner online or by calling Consumer Advocacy at 800-562-6900, weekdays from 8:30 a.m. to 4:30 p.m. The office sends the complaint to the insurer or agent and asks for a response. Insurers generally have 15 business days to reply.

When does a complaint make sense, and how do you file?

The OIC says you can file a complaint if you think an insurer or agent has violated the law or treated you or your claim unfairly. You can also ask an insurance expert a question without filing a formal complaint, and you can look up an agent or company in the OIC's license tool before you buy or renew. Fraud is a separate path: report it if you believe someone is trying to cheat an insurer or an agent.

You can file online through the OIC's complaint service, or use the paper complaint form the office publishes. Be ready to include:

• Your name and contact information.
• The insurance company's name, and the agent's name if the complaint is about an agent.
• The policy number, and a claim number and date of loss if you have them.
• A clear description of the problem, and what you want the company to do.
• Copies, not originals, of the documents that support your account, such as the declarations page, denial letters, estimates, or medical bills.

The OIC warns that a complaint and the documents you submit become public record and may be disclosed under state law. Some personal information is protected, including Social Security numbers, driver license numbers, financial account numbers, and nonpublic personal health information. In most cases, home addresses, telephone numbers, email addresses, and dates of birth are not protected from disclosure. Do not send sensitive information the office does not need. If more information is required, the office will ask for it.

If you are not sure whether the OIC is the right agency, start with a call or an "ask an expert" question. The office says that if it does not have jurisdiction, it will try to refer you to someone who can help. Medical providers have a separate set of resources if they are helping a patient with a complaint.

What happens after you file, and what the OIC cannot do

Once the office confirms it is the right agency, it prepares the complaint and sends it to the insurance company. The company then has 15 business days to respond. The OIC reviews that response to see whether the company is following state law and fair claims practices. If needed, it asks for more information. After it has the company's answer, the office shares the results with you and explains the company's position. If issues remain that the office cannot resolve, it may suggest next steps, which can include getting legal advice.

Your complaint becomes part of the company's official record with the OIC. Regulators use complaint data to watch for patterns of unfair or unlawful practices. Historical complaint information for companies is available through the same agent and company lookup tool.

The complaint process has limits. The OIC is clear about what it cannot do:

• It cannot act as your lawyer, give legal advice, or interpret your policy language for you as counsel would.
• It cannot make or change a decision about who is at fault in an accident.
• It does not determine how much a repair should cost, or the value of your property.
• It does not regulate medical providers or facilities, and it cannot make them adjust fees or respond.
• It does not provide medical opinions or decide whether a specific treatment is necessary.

A complaint is still useful when a claim is delayed, a denial is unexplained, a cancellation or nonrenewal notice looks wrong, or an agent or company seems to have broken a consumer-protection rule. It is not a substitute for meeting a policy deadline, and it is not a lawsuit. If you have a pending claim, keep paying any premium that is due and keep copies of everything you send.

Before you file, it often helps to ask the company or your agent, in writing, for a written explanation of the decision. Save the response. If you still think the company is wrong, file with the OIC and attach that correspondence. Work only with a licensed insurer and a licensed agent. You can confirm a license through the OIC lookup before you share account information or pay a premium.

FAQ

How do I file a complaint with the Washington OIC?

File online through the Office of the Insurance Commissioner, or call Consumer Advocacy at 800-562-6900, Monday through Friday from 8:30 a.m. to 4:30 p.m. A paper complaint form is also available on the OIC website.

How long does the insurance company have to respond?

The OIC says the company's response is due in 15 business days after it receives the complaint.

Will my complaint stay private?

The complaint and the documents you submit become public record, with some personal information protected by state law. Avoid sending Social Security numbers, financial account numbers, or health information the office has not asked for.

Can the OIC force the insurer to pay my claim?

The office can review whether the company is following state law and fair claims practices, and it can work with the company on issues it can resolve. It cannot act as your lawyer, decide fault in a crash, or set the value of your property. Some disputes end up in a private legal claim.

Next step

If a Washington insurer or agent has delayed a claim, denied coverage without a clear explanation, or treated you unfairly, talk first with a licensed local agent about the policy language. If the problem remains, file with the OIC or call 800-562-6900.

Sources: Washington Office of the Insurance Commissioner, complaints; Washington Office of the Insurance Commissioner, understanding the complaint process; Washington OIC complaint form (PDF).

Washington auto policies for vehicles registered or principally garaged in the state include underinsured motorist coverage, at the same bodily-injury limits as your liability coverage, unless a named insured or spouse rejects it in writing. The coverage also applies to uninsured, hit-and-run, and phantom vehicles. Read your declarations page to see whether it is still in force.

What does "underinsured" mean in Washington?

RCW 48.22.030 uses "underinsured motor vehicle" in a broad way. It includes a vehicle with no bodily injury or property damage liability insurance at the time of the crash, and a vehicle whose liability limits are less than the damages you are legally entitled to recover. In plain terms, the same coverage is how you may be paid if the other driver has no insurance, has too little insurance, leaves the scene, or cannot be identified.

The Office of the Insurance Commissioner explains that this coverage reimburses you if you, a family member, or your designated driver is hit by an uninsured driver, a hit-and-run driver, or an unidentified vehicle that forces you to have an accident. For a hit-and-run or unidentified vehicle, the OIC says to report the accident to local law enforcement within 72 hours, and to try to get contact information from witnesses. The statute has its own conditions for phantom-vehicle claims, including corroboration and a prompt report. Check your policy for the exact steps.

The coverage has to be included on a new or renewal auto liability policy for a vehicle registered or principally garaged in Washington, except while you are operating or occupying a motorcycle or motor-driven cycle, and except while you are in a vehicle that is owned or available for regular use by the named insured or a family member and is not insured under that policy's liability coverage. Agents and brokers also have to offer this type of coverage to motorcycle drivers. It does not apply to umbrella policies or other excess policies.

Except for property damage, the coverage has to be in the same amount as your third-party liability coverage unless you reject all or part of it in the way the law allows. Property damage underinsured coverage only has to be issued together with coverage for bodily injury or death. A named insured or spouse may reject, in writing, underinsured coverage for bodily injury or death, or for property damage. If it has been rejected, it will not be added back on a renewal unless a named insured or spouse later requests it in writing. The written-rejection rule applies to the original issuance of policies issued after July 24, 1983, not to every later renewal. If you choose property-damage underinsured coverage that is lower than your property-damage liability limit, a written rejection is not required.

Why the legal liability minimum makes this coverage matter

Washington's liability minimums are $25,000 per person and $50,000 per accident for bodily injury, and $10,000 for property damage. If the at-fault driver carries only those floors, your medical bills, lost wages, or vehicle damage can exceed what that driver's policy will pay. Underinsured motorist coverage is the part of your own policy that may fill that gap, up to the limit you carry and subject to the policy's terms.

Because the default is to match your liability limits, a decision to raise your bodily-injury liability often raises the underinsured limit as well, unless you reject the extra amount in writing. A decision to drop the coverage, or to keep only the minimum, is easy to miss on a renewal. Look at the declarations page, not only the monthly premium.

The coverage is not a substitute for liability insurance, and it is not the same as collision or comprehensive. Collision pays for damage to your car in a crash, with a deductible, even when you are at fault. Comprehensive pays for theft or damage from something other than a collision with another car or object, such as fire, vandalism, or contact with a deer. Personal injury protection, which is optional in Washington, can help pay medical bills and related costs for you and your passengers, regardless of fault. Underinsured motorist coverage is about damages you are legally entitled to recover from another driver who has no insurance, too little insurance, or cannot be identified.

When you review a quote or a renewal, ask a licensed agent to write down:

• Whether underinsured motorist coverage is currently on the policy, and at what limits.
• Whether a named insured or spouse has a written rejection on file.
• How property-damage underinsured coverage is handled, and any deductible (the law allows a deductible of up to $300 in some hit-and-run or phantom-vehicle property-damage claims).
• What the policy requires after a hit-and-run or phantom-vehicle accident, including the 72-hour report the OIC describes.

If a quote looks far below every other offer, or someone wants cash outside normal channels, call the OIC's Consumer Advocacy line at 800-562-6900 before you pay, and ask whether the company is authorized to write auto insurance in Washington.

FAQ

Is underinsured motorist coverage required in Washington?

It has to be included on a qualifying auto policy unless a named insured or spouse rejects it in writing. If you do not reject it, the bodily-injury limit generally matches your liability limit.

Does this coverage help if the other driver has insurance, just not enough?

Yes. In Washington, "underinsured" includes a driver whose liability limits are less than the damages you are legally entitled to recover, as well as a driver with no insurance.

What should I do after a hit-and-run?

The OIC says to report the accident to local law enforcement within 72 hours and to collect witness information if you can. Then read your policy and call your insurer. Phantom-vehicle claims have additional statutory conditions.

If I rejected this coverage years ago, will it come back automatically when I renew?

No. If a named insured or spouse has rejected the coverage, it stays off later policies unless a named insured or spouse later requests it in writing. Confirm the current status on your declarations page.

Next step

Ask a licensed local agent to show you whether underinsured motorist coverage is on your policy, whether it matches your liability limits, and what a written rejection, if any, is still doing. If you were in a hit-and-run, report it promptly and then review the claim with that agent.

Sources: RCW 48.22.030; Washington Office of the Insurance Commissioner, how auto insurance works; Washington Office of the Insurance Commissioner, mandatory auto insurance law.

The Washington FAIR Plan offers basic fire insurance when you cannot find property coverage in the standard market. The maximum at any one location is $1.5 million. The Plan does not offer liability or theft coverage, and it pays actual cash value, not replacement cost. Apply through a Washington-licensed property insurance agent.

What is the FAIR Plan, and what does it actually cover?

FAIR stands for Fair Access to Insurance Requirements. The Washington FAIR Plan was established in 1968. It operates under Chapter 284-19 of the Washington Administrative Code and is supervised by the Office of the Insurance Commissioner, but it is not a state agency and does not receive taxpayer funding. Every insurer licensed to write property insurance in Washington has to be a member. The Plan is a joint reinsurance association of those member companies.

The Plan's own materials describe it as last-resort coverage for dwellings and commercial buildings when the applicant cannot obtain insurance in the standard market. Policies are available anywhere in Washington if the property is occupied and reasonably maintained. Farm and manufacturing risks are not eligible. Neighborhood location, or an environmental hazard beyond the property owner's control, is not an acceptable reason by itself for the Plan to decline a risk. The Plan may still decline a property that fails reasonable underwriting standards, including serious problems with construction, heating, wiring, deterioration, vacancy, overcrowding, or unsafe storage of flammable materials.

Coverage is basic. A dwelling fire policy always includes fire and lightning. Extended coverage, which can add perils such as windstorm, hail, explosion, riot, vehicle damage to the building, smoke, and volcanic action, is optional. Vandalism and malicious mischief can also be added. Contents coverage is available for owner-occupied and tenant-occupied dwellings. What the Plan does not provide is just as important:

• No liability coverage.
• No theft coverage.
• No "time element" coverage such as fair rental value or business interruption.
• No replacement-cost coverage. Claims are settled on an actual-cash-value basis under a standard fire policy.

The OIC tells people who are losing a homeowners policy to ask their agent for help finding other coverage, and, if that search fails, to get a quote through the FAIR Plan, which "provides basic property insurance up to $1.5 million if you can't get coverage." That $1,500,000 cap is the maximum at any one location, as the Plan states on its customer pages. If the house would cost more than that to rebuild, the FAIR Plan alone will not close the gap.

People often end up in the Plan after two or more claims, a liability incident such as a dog bite, a lapse in coverage, deferred maintenance, an older dwelling that does not meet current codes, or difficulty finding a standard policy in a wildfire area or on an island. Those are examples the Plan itself lists, not a prediction that any one of them guarantees a declination in the standard market.

How to apply, and why you should keep shopping the standard market

The FAIR Plan has no appointed agents. Any insurance producer licensed to write property insurance in Washington can help you apply, and every such producer has to assist if you ask. The application has to be signed by both the agent and the applicant. The agent you choose is your representative, not an agent of the Plan. You can also contact the Plan directly at 425-745-9808 or 866-745-9808, or at 2122 164th St SW, Suite 301, Lynnwood, WA 98087.

Because the coverage is narrower and is usually priced as last-resort insurance, the Plan recommends that you keep evaluating standard-market options while you have a FAIR Plan policy. Broader coverage, including liability, theft, and replacement cost, is normally available from a regular homeowners insurer if one will accept the risk. If you already have a FAIR Plan policy, ask a licensed agent, at each renewal, whether a standard policy is now available.

A FAIR Plan policy also does not replace flood or earthquake insurance. Those perils are usually excluded from a standard homeowners policy as well, and they require separate arrangements. If you are being non-renewed, put the replacement coverage in force before the old policy ends, so the mortgage and the house are not left uninsured.

Work only with a licensed agent. If someone offers a "guaranteed" homeowners policy that is not from an authorized company or the FAIR Plan, or wants cash outside normal channels, call the OIC's Consumer Advocacy line at 800-562-6900 before you pay.

FAQ

What is the Washington FAIR Plan?

It is the state's last-resort basic property insurance program for dwellings and commercial buildings that cannot be insured in the standard market. It is supervised by the OIC but is not a state agency and is not funded by taxpayers.

Does a FAIR Plan policy replace a regular homeowners policy?

No. It is basic fire insurance, with optional extended coverage and vandalism. It does not include liability or theft, and it pays actual cash value rather than replacement cost.

How much coverage can I buy?

The maximum at any one location is $1,500,000. Farm and manufacturing properties are not eligible.

How do I apply?

Contact several standard insurers or licensed agents first. If they cannot place the risk, any Washington-licensed property insurance agent can submit a FAIR Plan application with you. The Plan does not assign you an agent.

Next step

If a Washington homeowners insurer has declined or non-renewed your policy, ask a licensed local agent to shop the standard market first and, if that fails, to apply to the Washington FAIR Plan. Review the gaps in liability, theft, and replacement cost before you rely on the policy.

Sources: Washington FAIR Plan; Washington FAIR Plan, FAQ; Washington FAIR Plan, customers and coverage; Washington Office of the Insurance Commissioner, changing homeowner policies.