Washington • Insurance non-renewal or spike

Washington condo insurance non-renewed or spiking — and is earthquake even covered?

Washington doesn't have Florida's hurricane drama, so insurance surprises here tend to be about what's not covered — earthquake, flood — and how big the deductible is. A non-renewal or a spike is worth reading carefully for those gaps.

The short answer

Washington's market is steadier than the coasts, but earthquake exposure is the quiet problem: quake coverage is optional and often excluded, with deductibles of 5–15%, and master deductibles of $25K–$100K shift loss to owners. CondoSignal reads your master policy and HO-6 against the Washington market to find the gap. Free.

Washington at a glance

Property floor

80% RCV

Plus liability (RCW 64.34.352).

Earthquake

Optional

Often excluded; 5–15% deductible when carried.

Master deductible

$25K–$100K

Often passed to the responsible owner.

FAIR Plan

Fire only

Last resort, not a master-policy substitute.

The earthquake gap

The Cascadia subduction zone makes earthquake the defining Washington risk, especially for Puget Sound high-rises — yet quake coverage is optional, expensive, and frequently excluded from the master policy, with deductibles of 5–15% when it is carried. If your association's master policy has no earthquake line, that's a large uninsured exposure that won't show until you read the declarations.

Deductibles that land on owners

To hold premiums down, many Washington associations carry master deductibles of $25,000 to $100,000, and declarations often allow passing a deductible to the responsible unit after a loss. A deductible that size can become a per-owner charge — and one above 5% of value can complicate conventional financing.

What's required and what's not

Condos must carry property insurance at 80% of replacement cost plus liability (RCW 64.34.352), but earthquake and flood are optional. The Washington FAIR Plan is a last-resort fire option, not a substitute for a master policy. Reading the master policy against your individual HO-6 shows where the real gap sits.

Your rights in Washington

Washington condos must carry property insurance at 80% of replacement cost plus liability (RCW 64.34.352); earthquake and flood are optional. Insurance terms must appear on the condo resale certificate. None of this is legal advice — confirm against the current statute and a Washington-licensed broker.

What to check

  • Establish whether the master policy or your HO-6 changed.
  • Confirm whether earthquake is covered and at what deductible.
  • Find the master deductible and whether it passes to owners.
  • Check whether flood is covered if you're in a flood zone.
  • Confirm your HO-6 loss-assessment coverage.
  • Check whether the deductible exceeds the 5% financing cap.

Sources

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Washington-licensed professional.

FAQ

Frequently asked questions

Not sure what your documents are really telling you?

Get a free CondoSignal review of your situation — we read the paperwork against your state's rules and tell you what to do next. No cost, no obligation.