PEMCO Insurance homeowners insurance

Overview

PEMCO Mutual Insurance Company is a Seattle-based mutual insurance company that sells auto, home, condo, renters, boat and umbrella insurance only in Washington and Oregon. It is owned by its policyholders, who elect the board at an annual meeting in Seattle each January. PEMCO sells directly by phone, online and through its app, backed by its own licensed agents, which makes it largely a direct writer. Its in-house broker, PEMCO Insurance Agency, finds coverage from other insurers for things PEMCO does not write, such as earthquake, flood and manufactured homes.

PEMCO ranked #94 among U.S. homeowners insurance groups by 2025 direct premiums written, with $191.4 million (0.10% of the national market), according to NAIC market share data. Nearly all of it, $180.8 million or about 94%, was written in Washington, where PEMCO was the 8th-largest homeowners insurance group in 2025 with 4.69% of the market. The rest is mostly Oregon. Counted by individual company rather than group, Washington's Office of the Insurance Commissioner (OIC) lists PEMCO Mutual as the state's fifth-largest homeowners insurer, with 4.7% of the market, in its 2025 annual report.

History

PEMCO has served Northwest policyholders since 1949 and has stayed regional for more than 75 years; it calls itself the Northwest's largest locally based insurance company. It remains an independent mutual, and its educator discount, open to anyone who works for a public or private school, community college or university and kept into retirement, is still one of its signature discounts.

PEMCO bought its five-story headquarters at 1300 Dexter Avenue North, in Seattle's South Lake Union neighborhood, in 2015. In June 2022, after shifting to hybrid work during the pandemic, it listed the building and three adjacent parcels for sale, saying it had more space than it needed and no plans to leave the Northwest; the building is still listed as its headquarters and was the site of its January 2026 annual meeting. Stan McNaughton, president and chief executive in its 2022 and 2024 announcements, chaired the board at that 77th annual meeting. PEMCO also partners with outside companies for products it does not underwrite: Cinch Home Services for home warranties and National Water Company, whose plans are underwritten by Lyndon Southern Insurance Company, for water and sewer line coverage.

Homeowners coverage

The homeowners policy covers the dwelling, personal property, personal liability, medical payments to others and loss of use. PEMCO insures the home for its estimated cost to rebuild, not its market or assessed value. Loss of use can apply after a mandatory evacuation even if the house is not damaged, a useful feature in wildfire season. Its FAQ gives an example of the policy's debris removal coverage: up to $2,000 to remove a tree that falls on a covered structure.

PEMCO also lists Home Repair coverage, which it describes as paying repair costs for plumbing, electrical and HVAC systems; ask how it differs from standard equipment breakdown coverage coverage before you rely on it. Jewelry, bikes and other valuables can be scheduled. Condo and renters policies follow the same pattern, and an umbrella policy adds up to $5 million of liability over PEMCO home and auto policies.

Two gaps matter in the Northwest. Earthquake damage is not covered by PEMCO homeowners, condo or renters policies, and flood is excluded too; PEMCO Insurance Agency places earthquake insurance with a specialist carrier and flood through the NFIP. Water and sewer line breaks are not covered by most homeowners policies, which is why PEMCO offers a separate National Water Company plan, available in Washington, Oregon and Idaho, with a 30-day waiting period.

Expect an inspection. PEMCO uses exterior inspections, especially for older homes, homes in high-wildfire-risk areas, homes on slopes or near water and homes with pools or trampolines; homes with a replacement cost over $1 million may need an interior inspection too. Refusing an inspection, or failing to fix problems it finds, can lead to cancellation or nonrenewal (see insurance inspections after you buy a policy).

Discounts and savings

PEMCO lists a claims-free discount (no claims in three years), a home plus auto discount, the educator discount, a protective device discount for fire, gas, theft and water devices with alarms, monitoring or automatic shutoff, a sprinkler discount, and a fire-resistive construction discount for condo buildings. It says loyalty discounts apply to some policies. Wildfire mitigation and Firewise USA membership do not directly lower the premium, but PEMCO says it considers them when deciding whether to write or renew a home (see owning a home in a wildfire area: keeping your coverage). A Cinch Complete Home warranty plan can reimburse up to $1,000 of a homeowners deductible once a year.

Where it sells and recent market moves

PEMCO sells only in Washington and Oregon. The main story for its policyholders has been price. The OIC's annual reports show an average homeowners rate increase of 15.4% for PEMCO Mutual effective September 2023 and 5.9% effective September 2024, its most recent approved change as of the 2025 report. In a September 2023 letter mostly about auto insurance, the CEO wrote that claim costs "far outstrip the premiums we collect" and answered a long-time customer upset about a 40% increase, calling that size of increase "not the norm"; auto policies also moved to six-month terms. PEMCO's homeowners business has since steadied: NAIC data show a 2025 homeowners loss ratio of about 51%, close to the 55.1% direct loss ratio for the homeowners line nationally, according to the same NAIC report.

PEMCO's rate FAQ also acknowledges that some long-time customers have been non-renewed, and points them to PEMCO Insurance Agency or a local agent for other options.

Claims

Claims can be reported 24 hours a day, 365 days a year at 800-467-3626 (1-800-GO-PEMCO), online through your account or in the Go PEMCO app. After a home loss, PEMCO asks you to make the home safe, protect it from further damage and keep receipts; a representative then confirms coverage and works the claim. It offers a list of contractors other customers have used but says you may hire anyone. If you are evacuated, call once you are somewhere safe so loss of use can begin.

Ratings and reputation

PEMCO does not post a financial strength rating on its website, so ask for the current AM Best rating if your lender needs it. Its 2025 loss ratio of about 51% on homeowners business compares favorably with the market, based on NAIC data.

For service, PEMCO's strongest third-party marks are on the auto side: it was ranked first in customer satisfaction among auto insurers in the Northwest region in J.D. Power's 2024 auto insurance satisfaction ranking, the eighth time it has led that region, according to the company.

Who it suits

PEMCO suits Washington and Oregon homeowners, condo owners and renters who want a local mutual that writes both home and auto, will talk to them on the phone, and gives school employees a dedicated discount. It suits less well anyone outside those two states, owners who want earthquake or flood coverage from the same company, or buyers who want to compare quotes through an independent agent.

• Strengths: policyholder-owned mutual focused on the Northwest since 1949; the 8th-largest home insurance group in Washington; educator, claims-free and protective-device discounts; 24/7 claims reporting and a modest 2025 loss ratio.
• Weaknesses: sold only in Washington and Oregon; earthquake and flood must be bought from other insurers; average homeowners rate increases of 15.4% (2023) and 5.9% (2024); no financial strength rating published on its site.

How to contact PEMCO Insurance