4 tips for shopping for home insurance in Washington
In addition to looking at how much each home insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
When buying homeowners insurance in Washington, there are some additional insurance options you may need to consider to protect against the state's catastrophic wildfires in recent years, as well as flooding and earthquakes..
Consider buying guaranteed replacement cost coverage
You should be sure that your home is fully protected from wildfires in Washington.
While most home insurance policies do cover wildfires, you should make sure that you'll be able to fully rebuild your home by adding guaranteed replacement cost coverage to your policy, which pays to rebuild your home no matter how much it costs.
Look into excess and surplus lines insurance
Another option is to purchase coverage through an excess and surplus lines insurer, which is becoming increasingly popular in wildfire-prone states like Washington.
Also known as E&S insurance, this is a type of property insurance that covers risks that are too high for a regular insurance company to take on — including extreme wildfire risk. Since E&S insurance companies take on more risk than regular insurers, this type of coverage is typically more expensive than standard homeowners insurance.
Consider buying flood insurance
Homeowners insurance doesn’t cover flooding, so if you live in one of the FEMA-designated high-risk flood zones in Washington, you may want to purchase a separate flood insurance policy.
Most insurers offer flood insurance through the National Flood Insurance Program. As of 2022, the average cost of flood insurance in Washington is $930 per year.
Look into earthquake insurance
Washington has the second-highest risk in the country from large earthquakes, according to the state's Department of Natural Resources. That said, your homeowners insurance won't cover damage caused by earthquakes.
While the probability of a severe earthquake impacting your house may be fairly low, earthquake insurance may be worth it if you live within close proximity to an active fault or if your house is made of materials that make it more at risk of collapsing during a quake.
Some home insurance providers offer earthquake coverage as a separate policy add-on, while other companies specialize in offering it. The cost of earthquake insurance can be high: potentially thousands of dollars more per year on top of your regular policy.
Learn more >> What is earthquake insurance & is it worth the cost?
How to buy homeowners insurance in Washington
While the cost of home insurance in Washington is around 34% less than the national average, you should still compare quotes from multiple companies to make sure you‘re getting the best coverage at the lowest possible rate.
Here are a few steps to follow as you shop for homeowners insurance in Washington:
1. Reach out to a licensed Policygenius insurance agent.
Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price. Our agents do this for free with no impact to your credit score.
2. Ask about the specific concerns you have.
Every situation is different, so you need to have an insurance policy that specifically addresses your unique needs. For example, if you have a swimming pool or certain dog breeds deemed “dangerous,” make sure to mention these things to your agent so they can help you find the right coverage for your needs.
3. If you’re unable to find homeowners insurance on the private market, ask about E&S insurers.
Excess and surplus insurance is designed for homes that are considered too high risk to insure on the standard market. This coverage tends to be more expensive than standard homeowners insurance and isn’t backed by the state, which means the company isn’t obligated to comply with insurance regulations in your state. This can be risky, but there are some situations where E&S insurance coverage may be your best option.
4. If you’re still struggling to find coverage, ask about your state’s FAIR Plan.
The Washington FAIR Plan is designed to be a last-resort coverage option for homeowners who are not able to secure insurance on the private market. The Washington FAIR Plan does not compete on the private market and homeowners must have two denials from other insurance companies to qualify for coverage.
5. Figure out how high of a deductible you can afford.
You’ll want to set your deductible to an amount you can afford to pay in the event you need to file a claim due to loss or damage. The higher your deductible, the lower your home insurance rates — and vice versa.
6. Compare quotes from a Policygenius agent.
Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent can walk you through your quotes to help you find the best policy for your coverage and budget needs.
7. Choose your policy, sign it, and pay your first premium.
After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you, including canceling your old policy, if you had one. The only thing left to do is sign your new policy and pay your first premium.
Why is it so hard to get homeowners insurance in Washington?
One of the biggest factors in rising insurance costs in Washington and reduced availability of homeowners insurance is climate change. Washington has seen an increase in the severity of wildfires over the years, which is causing insurance costs to go up and availability to go down.
Inflation is also causing an increase in home insurance costs. The cost of labor and supplies to repair or replace a damaged home has gone up significantly over the last few years, which means insurers are more cautious about taking on new customers and in turn are charging higher rates.
What if I can’t find home insurance coverage in Washington?
You have a few options to consider if you can’t find coverage in Washington:
Use an insurance marketplace. Insurance marketplaces like Policygenius partner with dozens of home insurance companies, including E&S insurers that specialize in offering coverage to homeowners who were denied coverage on the private market. One of our licensed agents can help you compare quotes from different insurers to find one who is willing to offer you coverage.
Ask if you can make home renovations to mitigate risk. If your insurance company is still writing policies in your area, but their underwriting requirements are stricter, ask if there are improvements you can make to your home that will make you more insurable. This might mean installing fire-resistant roofing or wind-resistant storm shutters to better protect your home against extreme weather.
Talk to your neighbors. If you live in an area at high risk of wildfires, odds are your neighbors are also having trouble finding coverage. Ask around to see if anyone had success with a specific insurance company.
Apply for home insurance through the Washington FAIR Plan. As a last resort, you’ll likely be able to get a policy through the Washington FAIR Plan. While it offers less coverage and is more expensive than traditional policies, it’s a good stop-gap until you’re able to find coverage on the traditional market.
