What Is Form 22VV? Homeowners Insurance Contingency in Washington

NWMLS Form 22VV, the Homeowner Insurance Addendum, addresses a buyer’s ability to obtain insurance on the terms agreed in the purchase contract. It is an optional addendum, not an automatic protection in every sale. The signed form, completed blanks and selected coverages matter.

Insurance deserves attention early in a Washington home purchase. A property can look like a good fit and still bring an unexpected insurance cost or coverage problem. Most mortgage lenders require appropriate property insurance, so an unresolved issue can also affect the path to closing.

The Madrona Group’s Approach: Check Early

Homeowners insurance has become a more prominent part of our buyer conversations. Our team is seeing more concern about availability, cost and property condition than in earlier years. We encourage buyers to check with an insurance professional before making an offer when possible, or promptly after acceptance while their applicable contractual protections are still available.

We do not treat Form 22VV as a one-size-fits-all decision. We discuss the property, the buyer’s concerns and the protection available before the offer is written. What we do not want is a buyer learning about a coverage problem after an important deadline has passed.

The seller having insurance is useful background, but it does not establish what a new buyer can obtain or what that buyer will pay. Ask for an assessment based on your purchase and intended use, and coordinate with the lender about its requirements.

What to Ask the Insurance Professional

Ask about the premium, deductible, exclusions, required coverage and any conditions that must be satisfied. Find out whether the insurer needs more information about the roof, building systems, previous claims or property condition. Ask whether an inspection or image review could lead to additional requirements, and what remains outstanding before coverage is finalized.

Keep flood coverage separate in that conversation. The Washington Office of the Insurance Commissioner explains that ordinary home policies generally do not cover flooding. Ask the lender and insurance professional whether separate flood insurance is required, what it covers and how it changes the total cost.

A River Property and an Unexpected Flood-Insurance Cost

In one transaction our team handled, the home was near a river. The seller had not been required to carry flood insurance, but it was required for the buyer’s purchase. The additional cost was a few hundred dollars per year in that particular transaction, and it caught the buyer off guard.

The buyer had to weigh that new expense when deciding whether to move forward. That amount is not a general estimate for flood insurance. The lesson is to check the requirements for your own purchase rather than assuming the seller’s situation will carry over. We would not assume why the requirement changed without checking the lender’s determination and relevant property information.

Know the Form’s Limits and Deadlines

The February 2026 NWMLS sample of Form 22VV addresses insurance binders, premium and deductible ceilings, and selected additional coverages. It distinguishes the deadline to apply from the deadline to give a termination notice and the deadline to supply an insurer’s supporting letter. Confirm each requirement in your signed version with your broker.

A quote is not the same as a binder, and a binder is not a guarantee that the final policy will be issued on unchanged terms. Ask the insurance professional what has been approved and what remains subject to review. Track the relevant dates rather than assuming that ongoing discussions with an insurer preserve the contingency.

If Coverage Is Unavailable or Too Expensive

Tell your broker and lender immediately, and obtain the insurance professional’s explanation. Possible paths to investigate include another insurer, addressing a property condition, negotiating a change with the seller or exercising an available termination right. None is an automatic solution. Repairs need insurer confirmation, and a requested extension or contract change needs the parties’ agreement.

The Madrona Group keeps the buyer focused on the timeline and the protections that remain in place. We want the buyer to understand the options while there is still time to act, rather than assuming the problem can be sorted out on closing day.

Insurance Problems Do Not Create an Automatic Financing Exit

An insurance problem can interfere with loan approval, but that does not automatically establish a right to terminate under a financing contingency. Its wording, whether it remains in effect, the buyer’s compliance and the specific circumstances all matter. Have the broker and lender identify the issue, and consult an attorney if contractual rights or earnest money are disputed.

Washington REALTORS’ April 15, 2025 Legal Hotline discussion highlights the importance of the separate insurance addendum in a transaction where coverage became a problem. Buyers should discuss insurance protection at the offer stage instead of expecting another provision to provide it later.

Do not treat earnest money as a universal cancellation fee. Walking away without a valid termination right can create liability under the signed agreement, and potential exposure is not always limited to the deposit. An attorney should review that decision before the buyer acts.

Video: Form 22VV Explained

Use the video as background and compare it with the form you are actually signing. Form revisions and the terms negotiated for your transaction control.

Related Washington Real Estate Guides

Continue with our guides to financing that falls through, what happens after mutual acceptance and condo resale certificates. The Madrona Group can help coordinate the real estate questions with your lender and insurance professional.

Frequently Asked Questions