Grace periods, protection from cancellations: WA shields insurance policyholders amid wildfires

Washington’s Office of the Insurance Commissioner has issued an emergency order with special protections for policyholders in those areas where wildfires are burning.

People affected by the Gray Fire or the Oregon Road Fire will have extra time to pay their premiums, and will be shielded from cancellations and non-renewals until at least mid-October. The order applies to homeowners, renters, and people with auto and commercial insurance policies.

Stephanie Marquis is a spokesperson for the Office of the Insurance Commissioner.

Marquis said Commissioner Mike Kreidler issued the order “to make sure that people impacted by the current wildfire area...if they, say, can’t get to their house, they can’t make a premium payment for their insurance — that they have a grace period where they are not going to be cancelled.”

“The typical notice for nonrenewal is 45 days, and that has been suspended up until October 17," she said.

Marquis said the emergency order could be extended or expanded depending on wildfire activity in the coming weeks.

The basis for the order is Governor Jay Inslee’s emergency declaration made Aug. 19.

“Once the governor declares a state of emergency, the insurance commissioner has the authority to do his own order directing insurance companies to add some extra protections for people that may be impacted by a natural disaster," she said.

Marquis called the order a proactive measure meant to prevent additional hardship for policyholders in the fire zones.

“We’ve all seen the devastation caused by the ongoing wildfires in Eastern Washington,” Kreidler said in a statement. “People are worried about their own and their families’ safety and protecting their property. I don’t want them to have to worry about losing their insurance coverage while the emergency is ongoing and the difficult recovery for the community begins.”