This bill creates a new section in chapter 48.18 RCW that requires every automobile insurance policy with first‑party physical damage coverage issued or renewed effective on or after January 1, 2026, to include a right to appraisal clause to resolve disputes over actual cash value and amount of loss. The clause must use the bill’s sample language or equivalent language the insurance commissioner approves. It is a procedural change to how covered damages are valued and does not create a new crime or alter criminal penalties. Under the required appraisal process, neither party may demand appraisal until 10 days after the insurer receives notice of the claim. After a written demand, each side has 10 days to select a competent, disinterested appraiser and notify the other; the two appraisers must appoint a competent, disinterested umpire within 10 days. If they fail to agree on an umpire, either appraiser may ask the commissioner to identify a registered umpire under a process the commissioner will specify by rule. Appraisers make separate findings for each element of loss, exchange completed appraisals, and submit unresolved differences to the umpire; the amount of loss is determined by agreement of the two appraisers or by agreement of one appraiser and the umpire. The bill allocates costs: each party pays its own appraisal expenses, and the parties share the umpire’s fee equally. If the appraisal result exceeds the insurer’s pre‑appraisal adjusted amount by $500 or more, the insurer must reimburse the policyholder for appraisal process costs, including reasonable appraiser fees, reasonable attorneys’ fees, and other necessary actual costs. The bill defines “appraiser,” “competent,” “disinterested,” and “umpire,” authorizes the commissioner to adopt implementing rules, and names affected groups (automobile insurers, policyholders, appraisers/umpires, and the commissioner). The text provided does not identify which specific commissioner office is meant, does not include rules or criteria for registering umpires, leaves placeholder wording in the sample clause unspecified, and contains no enforcement provisions or interactions with other RCW sections in the material shown.

If enacted, starting January 1, 2026 Washington auto insurance policies that cover physical damage will have to give insureds a formal appraisal process to settle disputes about the amount of loss and actual cash value. Either side can seek appraisal after 10 days from the insurer getting the claim, each side picks an appraiser within 10 days, and an umpire resolves disagreements if the two appraisers cannot; each party pays its own appraiser, the umpire’s cost is split, and if the appraisal outcome increases the insurer’s pre-appraisal payment by $500 or more the insurer must reimburse the policyholder for appraisal-related costs including reasonable appraiser charges and attorneys’ fees. The insurance commissioner will approve equivalent clause language, may name umpires if needed, and can adopt implementing rules. The main effects are on insurers, policyholders, and appraisal professionals: insurers must add the clause to new or renewed policies, meet tight timelines, share umpire costs, and potentially pay more on claims plus reimbursed appraisal costs; policyholders gain a clearer, potentially cost-shifting way to challenge low settlements; appraisers and umpires must meet competence and disinterest standards and could be rostered by the commissioner. The text does not specify which commissioner office is meant, how umpires will be registered or selected in detail, or any enforcement or penalty process.