SPOKANE, Wash. – Homeowners in Spokane and across Washington are feeling the pinch as insurance rates continue to rise sharply.
Data from the Washington Office of the Insurance Commissioner shows that homeowner rates increased by more than 16% in 2023 and another 21 percent in 2024. The rising rates are attributed to insurance companies adjusting to increased payouts, which rose 35 percent from 2021 to 2022 and another 8% in 2023.
“The cost of claims is the biggest driver of insurance pricing,” said David Forte from the Office of the Insurance Commissioner.
The rate hikes have left many Washingtonians frustrated. The Office of the Insurance Commissioner noted that the severity of claims, rather than the total number, is driving the increase. “There’s folks at the OIC who’ve been here for over 30 years, they have no memory of this type of a loss trend,” Forte added. “You saw used car prices explode, well, the payments for car insurance claims go higher as the value of cars increase. The more complexity that cars get, it makes them more expensive to repair that is also driving it,” Forte said.
Despite these challenges, Forte emphasized that Washington is a prior approval state, meaning any proposed rate changes must be approved by the state. “We are actively looking at profit provisions to make sure no profit gouging is going on,” he stated.
The Insurance Commissioner’s Office also highlighted issues with insurance payouts, noting a growing number of complaints. Forte attributed this to companies shifting away from sending insurance adjusters to assess damages, instead relying on customers to send photos for analysis by artificial intelligence, which can be unreliable.
