Washington Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Washington, the policyholder must inform their insurance carrier of the loss (either directly or through their agent), and that they are making a claim. This means that the only requirement to initiate the process is that the insurance carrier is informed that there has been a loss, some details about the loss, and that the policyholder wants to make a claim.  

In many cases, an insurance company will call this communication a first notice of loss, or FNOL. In Washington, insurance laws call this communication a “notification of claim.” 

Most insurance companies provide multiple ways to contact them after a loss to begin the claims process, these usually include:

a. Phone call (a number is usually provided on the insurance company’s website);

b. Online portal – many insurance companies have an online form to notify the claims department of a loss;

c. Your agent (or “producer”) – many insurance companies even have a different section of their website or phone number for an agent to inform them of a policyholder’s loss;

d. Online software.

While it is easy and quick to start a claim, claimants need to continue to follow-up and provide more information. In many cases, the insurer will require more information and supporting documentation, including specific forms, to actually process and adjust the claim. These specific necessary forms should be provided to the claimant by the insurance company.

1. Promptly inform your insurance carrier of the loss (see above);

2. As soon as possible begin to mitigate the damage – protect the property and secure it against further damage as soon as it is safe and possible to do so.

3. Cooperate with your insurance company and communicate with them (and keep copies of all correspondence).

4. Make your property available for inspection as soon as it is safe and possible to do so.

5. Prepare supporting documents for your claim including:
– Inventory list;
– Description of damages;
– Photographs and/or videos of the damage;
– Receipts; etc.

Reporting Deadline: Washington insurance law does not specifically set forth a universally applicable deadline for making a property insurance claim. This means that the deadline for informing the insurer of a claim is set by the policy itself. It is important to be familiar with the insurance policy so that deadlines are not missed. Most insurance policies require that a claim be made “immediately” after the loss, or “promptly” or within a “reasonable time.” 

It is always best practice to inform an insurance company of the losses sustained and that a claim is being made as soon as it is reasonably possible to do so after the damage is incurred and a determination that a claim will be filed is made. While it is never a good idea to delay in providing the insurance company with information once it has been determined that a claim will be filed, the actual meaning of “immediate” or “prompt” or “reasonable” with respect to making a claim depends on the circumstances – if a home is completely destroyed by a storm and the phones, internet, and power are off, it may take a little longer to make the claim.  

Be sure to check the language of the insurance policy to determine the notification or reporting deadlines. But, in any event, remember that best practice is to provide notice of the loss and claim to the insurer as soon as possible.  

Documentation Deadline: Washington does not set a specific deadline to provide support for a claim by statute, but instead allows this timeline to be set by the policy itself. In many cases, Washington insurance policies require that a proof of loss document be provided within 30 or 60 days of when the loss was sustained, but this is not a hard and fast rule. In any event, however, the deadline for submitting a proof of loss may be extended by agreement between the parties if circumstances make it difficult or impossible for the policyholder to comply with the deadline as set forth by the policy. Also note that, the insurance company is required to provide claim forms, (including any proof of loss document required) as well as instructions and assistance to the policyholder within 10 working days from receipt of notification of claim (15 working days if the claim arises under a group insurance contract). 

Note, however, that no matter the actual deadline for providing supporting documentation, it is always best practice to provide a proof of loss document and support of the claim as soon as possible (while noting that the document only presents the knowledge at the time and may be amended or updated). Some deadlines for Washington insurance companies start to run from their receipt of a sufficient proof of loss, so getting one to the insurance company quickly is a good way to get the claim process moving along, and to get your payment. 

Deadlines for Acknowledgment: Washington has adopted laws governing unfair claims settlement practices to protect policyholders and to provide a streamlined timeline for claims to be handled, and these laws provide deadlines for the acknowledgment and investigation of claims.   
Washington requires insurance companies to acknowledge property insurance claims relatively quickly. Once an insurer receives a notification of claim from their insured, the insurance company is required to acknowledge the claim within 10 working days (15 working days if the claim arises under a group insurance contract). 

Further, Washington law requires that the insurer provide the policyholder with all necessary claim forms, instructions, and assistance to help comply with the policy conditions and the insurer’s reasonable requirements within the same 10-working-day period.

Deadlines for Investigation: Washington insurers are also required to conduct any required investigation into the claim fairly quickly. After the insurer receives the notification of claim they must investigate the claim, and must “complete its investigation of a claim within thirty days after notification of claim, unless the investigation cannot reasonably be completed within that time.” 

The insurer is also required to respond to any communication from the insured policyholder that reasonably indicates a response is expected within 10 working days of receipt of such communication (15 working days with respect to communications arising under group insurance contracts).

Deadline for Acceptance/Denial: Washington requires that an insurer inform the policyholder of the acceptance or denial of the claim within 15 working days from receipt of a “fully completed and executed” proof of loss from the claimant. This is one reason why it is important to not delay in providing a proof of loss document to the insurance company, the claim acceptance deadline is based on receipt of that document. If the claim is denied, the denial must be in writing.
    
If the insurance company needs more time in order to determine whether the claim is to be accepted or denied, the company must notify the claimant within the original 15 working day period, and give the reason more time is needed. Additionally, if more time is needed after the initial notification, the insurance company must then also provide written communication stating why additional time is needed within 45 days from the date of such initial notification and  again every 30 days thereafter while the investigation remains incomplete.

Deadline for Payment: Washington does not provide a specific deadline for when payment must be made after the claim determination is made, other than it should be made promptly and within a reasonable time.

If an insurance company is determined to be in violation of the unfair claims settlement practices requirements, the insurer is subject to penalties for each instance of noncompliance. 

Additionally, the policyholder may file suit against the insurer for an unreasonable denial of claim or payment of benefits. A claimant who is successful in such a suit may recover “the actual damages sustained, together with the costs of the action, including reasonable attorneys’ fees and litigation costs.” Note that failure of the insurance company to meet the communication, investigation, and settlement requirements outlined above can constitute unreasonableness.

Prior to filing such a lawsuit, the claimant must provide “written notice of the basis for the cause of action to the insurer and office of the insurance commissioner.”

Deadlines to File Suit: Washington allows property insurance policies to contain language limiting the time to file suit to no less than 1 year from the date of loss. Accordingly, most policies use this 1-year time period, although some policies have language providing for a 2-year limit. 

Note, however, that this deadline is limited to contractual claims pursuant to the insurance contract. Extra-contractual claims, such as claims under the Insurance Fair Conduct Act (IFCA) and the Consumer Protection Act (CPA) are not limited in time by the policy language.