Insurance in Washington: State Rules and Requirements

Insurance in Washington

The rules that shape car, home and business insurance in Washington, each linked to its official source, and how to get coverage shopped here. Sam Alishahi holds a Washington nonresident insurance producer license (NPN 21022298) and places Washington policies directly.

By Sam Alishahi · Reviewed October 2026

Car insurance in Washington (25/50/10)

Minimum car insuranceWashington requires at least $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage. Insurers must offer personal injury protection and underinsured motorist coverage; you can reject either one, but only in writing. Source
Fault systemWashington is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage. Source

Business insurance rules in Washington

Workers’ compensationWashington is a monopolistic state: private workers' compensation insurance is not allowed, so employers must buy coverage from the state fund run by the Department of Labor & Industries (L&I) or be certified by L&I as self-insured, which is open only to large employers. Source
Contractor licensingContractors must register with L&I and post a surety bond ($30,000 for general contractors, $15,000 for specialty contractors, the amounts since July 1, 2024). They must also carry liability insurance of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. Source

Home insurance in Washington

Home insurer of last resortThe Washington FAIR Plan, set up in 1968 and funded by the state's licensed property insurers, provides basic property insurance for dwellings and commercial buildings that can't get coverage in the standard market. Earthquake is the main catastrophe risk standard homeowners policies leave out, and it requires separate coverage. Source

High-value homes in Washington.

Disasters, floods, hail, tornadoes and earthquakes in Washington

Washington disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	Washington	Rank among the states	Detail
Federal major disaster declarations since 2000	32	#21 (tied) of 51	Most often for severe storm (15), flood (8), fire (7). Lewis County has been in 18 of them.
National Flood Insurance Program claims, 2005–2025	8,325	#20 of 51	$265.8 million paid; 24% of claims with a known flood zone were outside FEMA’s high-risk zones.
Hail reports, 2016–2025	55	#46 of 51	2 of them 2 inches or larger. Largest stone 2.75 inches, Spokane County, August 2022.
Tornadoes, 2016–2025	22	#40 of 51	1 rated EF2 or stronger; 136 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	23	#12 of 51	Largest: magnitude 5, 18 km N of Satsop, Washington, June 10, 2001.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in Washington.

The property risks that matter in Washington

Washington is a monopolistic workers' compensation state through the Department of Labor & Industries, and faces Cascadia earthquake risk.

Earthquake damage is excluded from standard homeowners policies. In Washington, earthquake coverage is available by endorsement or standalone policy, typically with a percentage deductible; compare the deductible in dollars before deciding.

Wildfire risk has changed home insurance availability in parts of Washington. Defensible space, ember-resistant vents and a Class A roof help eligibility, and if private insurers decline, ask about the residual market and difference-in-conditions coverage.

Standard homeowners and renters policies exclude flood. In Washington, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.

Worth knowing in Washington

Washington is one of the few states where businesses cannot buy workers' compensation from a private insurer; it comes only from the state fund through L&I unless the employer qualifies to self-insure.

What to review each year in Washington

Compare your auto liability limits with the Washington minimum of 25/50/10 and with your actual assets.
Get an earthquake quote and compare the percentage deductible in dollars.
Document defensible space and home hardening work with dated photos for your insurer.
Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
Condo owners: compare your HO-6 loss assessment limit with the HOA master deductible.

Washington’s insurance regulator

Insurance in Washington is regulated by the Washington State Office of the Insurance Commissioner, which handles consumer complaints and licenses insurers and agents.

Sam Alishahi holds a Washington nonresident insurance producer license (NPN 21022298) and places Washington policies directly.

Common questions

What is the minimum car insurance in Washington?

Washington requires at least $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage. Insurers must offer personal injury protection and underinsured motorist coverage; you can reject either one, but only in writing.

Is Washington a no-fault state?

Washington is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage.

Do employers in Washington need workers’ comp?

Washington is a monopolistic state: private workers' compensation insurance is not allowed, so employers must buy coverage from the state fund run by the Department of Labor & Industries (L&I) or be certified by L&I as self-insured, which is open only to large employers.

What can a Washington homeowner do if no insurer will write the house?

The Washington FAIR Plan, set up in 1968 and funded by the state's licensed property insurers, provides basic property insurance for dwellings and commercial buildings that can't get coverage in the standard market. Earthquake is the main catastrophe risk standard homeowners policies leave out, and it requires separate coverage.

Why are insurers declining homes in parts of Washington?

Wildfire risk models and rising rebuild costs have led some insurers to limit new business in high-risk areas.

More answers: Washington homeowners insurance guide Washington renters insurance and security deposit guide Washington small business insurance requirements Washington life insurance consumer guide Washington flood risk and NFIP guide Seattle home and auto insurance guide Spokane home and auto insurance guide Tacoma home and auto insurance guide Vancouver home and auto insurance guide

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in Washington