WA HB2553

Insurers must pay at least 50% of property insurance proceeds directly to the insured homeowner, with the remainder payable to both the insured and mortgagee; if the mortgage balance is 25% or less of assessed value and in good standing, all proceeds go directly to the insured.

Insurer-recommended contractors must begin repairs without requiring upfront payments exceeding the insured's deductible plus any insurance proceeds already released by the mortgagee.

Mortgagees must promptly distribute insurance proceeds for contents coverage and additional living expenses to the insured when they have no security interest in those contents.

Mortgagees must issue partial or full payment to the insured within two business days after repairs are completed and inspected.

Insurance payment provisions apply prospectively to residential mortgage loans with mortgagee clauses executed on or after January 1, 2027.