Concerning mortgagee clauses.

HB 2553 regulates how insurance proceeds are handled for residential property insurance claims involving mortgagee clauses. It requires insurers to pay at least 50% of proceeds directly to homeowners (not the mortgage company) unless the mortgage is ≤25% of the home's value and in good standing. The bill also mandates mortgage companies to promptly distribute contents insurance proceeds to homeowners and pay repair-related funds within two business days after approved work. This affects homeowners with mortgages, insurers, and mortgage lenders in Washington, taking effect January 1, 2027.