The bill introduces a new section to chapter 48.18 RCW, mandating that all automobile insurance policies with first-party coverage for physical damage, issued or renewed after January 1, 2026, must include an appraisal provision to resolve disputes over the actual cash value and amount of loss for damaged vehicles. The appraisal clause must contain specific language detailing the process for selecting appraisers and an umpire, as well as the responsibilities of each party regarding appraisal expenses. If the appraisal determines a loss amount that exceeds the insurer's prior adjustment by $500 or more, the insurer is required to reimburse the policyholder for appraisal costs, which include professional charges and reasonable attorneys' fees.

Additionally, the bill stipulates that neither party can demand an appraisal until 10 days after the insurer has received notification of the claim. Definitions for key terms such as "appraiser," "competent," "disinterested," and "umpire" are provided to clarify the roles and qualifications involved in the appraisal process. The commissioner is also granted the authority to adopt necessary rules for the implementation of this section.