Wildfire season is just around the corner, and
like it or not, it’s going to affect a lot of property owners across Central
Oregon.
If you’ve tried shopping for fire insurance
lately, especially in or around Bend, you’ve probably noticed it’s getting
tougher. With wildfire risks on the rise, premiums are climbing, some policies
are getting canceled, and in some areas, it’s getting harder to find coverage
at all.
Homeowners in Bend and across Central Oregon are
seeing major hikes in insurance costs. Since 2020, premiums have jumped nearly
30% statewide and in some places, they’ve even doubled or quadrupled. On top of
that, some insurance companies like Safeco and Progressive have stopped writing
new policies in higher-risk ZIP codes, including parts of Bend, Sisters,
Sunriver, and La Pine.
So, what’s going on? A few things are driving
this. But it is mostly wildfires that are becoming more frequent and more
intense, not just out West, but even on the East Coast. Many experts point to
climate change as a major factor, others point to forest and wildland
management practices. No matter what caused the fires the result is insurance
companies are taking bigger financial hits and are choosing that in high risk
areas it is not worth the risk.
Now, while Oregon law does require that home
insurance policies include fire coverage, it doesn’t stop insurers from deciding not to renew policies or from refusing
to offer coverage if they see your property as too risky. On top of that, some
of the big reinsurance companies, the ones that help back up the everyday
insurers, are pulling out of areas they consider high-risk, like parts of
southern Deschutes County. That’s led to even higher premiums or insurers
stepping away from the region entirely.
If you’re feeling the pinch or having trouble
getting fire insurance, here are a few things you can do:
Shop around: Different
insurers have different risk models, so getting multiple quotes might uncover
better options.
Improve your property’s fire resilience: Create and maintain defensible space around your home and using
fire-resistant materials can sometimes make you more insurable.
Check out FAIR plans: The Fair Access to Insurance Requirements (FAIR) plan is a state-backed
option for homes that can’t get coverage through traditional insurance. Here is
their web page, <b style="color: inherit" https://orfairplan.com/
If you are looking to
purchase a home no matter the location, once you know where the home is
located, check with your preferred insurer to see if they will insure the home
and property. Without an insurance policy you will not be able to finance the
purchase of the home.