June 25, 2020
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler extended an emergency order that requires insurers to extend deadlines relating to withheld depreciation for policyholders who are in the process of completing home or building repairs as part of a property loss claim under a replacement cost policy.
The deadline is extended 30 days to July 26. The original order, issued on April 27, expires June 26.
Without the extension, some policyholders in Washington could have been forced to accept a depreciated settlement from an insurer that was less than the replacement cost.
Some policies have a time requirement to complete repairs. Since the residential construction industry was prohibited from doing repair work during a statewide shutdown, some people may have been unable to complete the repairs within the allotted time.