Emergency Directive: Impact of Flooding on Washington Insurance Policies

Following a declaration of emergency by the Governor on December 10, Washington's Insurance Commissioner Patty Kuderer implemented an emergency directive impacting property and casualty insurers within the state. Effective from December 15 through February 12, 2026, the measures aim to assist policyholders affected by recent flooding and address regulatory compliance requirements.

Under the directive, insurance providers must introduce a 45-day grace period for premium payments and waive any late or reinstatement fees. Furthermore, policy terminations due to nonpayment can only proceed with explicit consent from policyholders. The order stipulates that the notice period for policy nonrenewal is extended from the standard 45 days to 120 days pre-expiry. This action ensures continued insurance coverage during the declared emergency state.

Impact on Insurers and Policyholders

For the insurance market, this directive indicates that carriers must adapt their operations temporarily to comply with extended grace periods and altered nonrenewal notifications. Insurance companies may experience changes in cash flow and operational processes as they manage delayed premium payments. Kenton Brine, leading the Northwest Insurance Council, emphasized that flood damage is typically not covered under standard homeowners’ policies, highlighting the importance of flood insurance and comprehensive auto insurance as risk management tools.

This situation prompts insurers to educate policyholders about flood-related exclusions and emphasize the necessity of adequate coverage for managing risks. As the situation evolves, policyholders are encouraged to review their coverage options and engage proactively with insurers. By offering timely communications and temporary relief measures, insurers play a vital role in supporting community recovery efforts and maintaining industry compliance during emergencies.