Homeowners Insurance in Oregon

Oregon is known for its miles of beautiful valleys, mountain regions, and twisting turning rivers. The state also has an abundant coastline and lovely sandy beaches. Oregon is located in the Pacific West portion of the U.S., which is prone to frequent earthquakes, wildfires, and hurricanes. As if that wasn't enough, Oregon is also subject to volcano eruptions, tsunamis, and landslides. Since 1953, Oregon has had 79 federally declared disasters, and the rate of disaster per 1 million people is 18.69.

Typical policies do not include flood, earthquake, and landslide damage, but along with numerous property damage claims due to turbulent weather events, Oregon residents also file liability, theft, vandalism, and accidental water damage (plumbing-related) claims.

Although no state requires homeowners to have any home insurance coverage, experts agree that everyone who owns property should have at least some. However, if you take out a loan to buy your house, your lender will demand that you have homeowners insurance and keep it on the property until the loan is paid off. They will also dictate the coverage levels.

As of September 2024, the national average for homeowners insurance is $2,728 annually or $227 monthly. Despite the potential perils in Oregon, homeowners pay an average of $1,077 per year, which is less than half the national average.

Each state has its own potential perils. Oregon has a wide variety of natural disasters, and home insurance providers determine whether or not to operate there and what types of coverage they can provide. In Oregon, the types of available coverage include:

Oregon is ripe with various types of damaging weather events, including hurricanes and tsunamis, both of which can cause flooding. Property owners should consider a flood policy and an umbrella policy to cover the gaps left by others.

FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. Depending on your options, it can cover the building and/or your personal belongings. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

Wildfires, hurricanes, tornadoes, and other types of storms are becoming more commonplace in the U.S., causing problems for the home insurance industry. The main drivers of home insurance rates today are global warming and climate change. Over the past five years, rates have increased by 34%, and in some places, they have even reached 60%. During that same period, Oregon homeowners insurance rates have risen 44.8%, much higher than the national average.

Oregon is replete with different types of disasters, including earthquakes, wildfires, hurricanes, volcano eruptions, tsunamis, and landslides. Wildfires are a massive concern for home insurance providers, and the average cost of even one insurance claim is $77,340. Water damage claims average $11,650, and wind and hail average $11,695 per incident. From 2015 to 2019, Oregon insurance carriers lost a total of $447,948,800. Roughly 147,500 Oregon properties are at risk of wildfires (9%). From 1980 to 2024, Oregon had 41 billion-dollar disasters. From 2013 to 2017, Oregon had 400 flood insurance claims. In 2020, Oregon had numerous wildfires that destroyed 541,444 acres of land.

With Oregon's home insurance prices rising steadily, residents must find ways to save. The key is finding out what affects home insurance rates and then adjusting from there. The factors affecting homeowners insurance in Oregon are:

Some ways to save on your homeowners insurance in Oregon include:

• Raise Your Deductible: Raise your deductible as high as possible to lower your premiums.
• Adjust Your Coverage: Review your coverage each year and lower your coverage limits if you need to save money on your rates.
• Improve Your Credit: Work on improving your credit and then ask your insurer to adjust your rates accordingly.
• Make Your Home Safer: Install home security to make your home safer and save on home insurance.
• Bundle Policies: Bundle all your policies together with the same provider to get lower rates.
• Ask for Discounts: Ask your insurance company for any applicable discounts.
• Avoid Risks: Don't add new risks to your home and eliminate existing ones.
• Don't File Small Claims: Don't file any small claims; wait until you really need it before using your insurance.
• Home Improvements: Improve your roof, windows, and siding to make your home more weather-resistant and get lower rates.

Homeowners insurance is a policy that financially protects your home. In the event of a natural disaster or other covered peril, your insurance company will pay to repair or replace your home, restoring it back to normal. Most policies include dwelling, liability, medical payments, personal property, other structures, and loss of use coverage. Some covered perils are smoke, fire, windstorms, vandalism, theft, and water damage.

You can purchase a home insurance policy quickly. Determine which provider you want to work with and contact them either through their website (most have online applications) or via phone. You can also choose to find a local agent for more personalized service to help you determine your needs and sign up. You will have to pay in advance for the first year. After that, you can pay monthly through your mortgage escrow or once a year.

Some of the most common home insurance discounts you will see with major firms include:

• Bundle Discounts: Bundle multiple policies with the same provider, and you'll receive a discount.
• Senior Discounts: Most firms offer senior citizens a break on home insurance rates once they reach a certain age.
• Claims-Free Discount: Remain claims-free for a certain amount of time and earn a discount the longer you go without any.
• Military Discount: Many insurance providers offer veterans or military personnel a discount for their service to the country.
• Occupational Discount: Teachers, firefighters, and others receive discounts for working in a specific occupation.
• Loyalty Discount: If you remain a loyal customer of a particular firm, they may discount your rates.
• Payment Method/Paperless Discount: Your carrier may offer a discount if you choose automatic payments or paperless statements.
• Security Discount: Install home security to help avoid claims; as a reward, your provider will discount you.
• Early Quote Discount: Request a quote long before you need it, and you may receive a discount.
• Smart Home Discount: Smart homes can monitor for disasters before they happen. Install specific devices or systems and get a discount.
• Fire Safety Discount: Install fire safety equipment like smoke alarms and sprinklers for a discount on your home insurance.
• New Home Discount: New homes cost far less to insure than older homes.
• Non-Smoker Discount: Get a discount for being a non-smoker and reducing your fire risk.
• Location-Based Discount: People who live in safe locations get discounted rates.

Common Rates Offer by Homeowners Insurance Firms

New homes cost a lot less to insure. In many cases, new home buyers will pay up to 40% less on insurance. Those who buy homes five years or younger could spend up to 26% less on home insurance. The average new home insurance price in Oregon is $646 a year, which is almost double the national average of $393. Your actual cost will vary based on your customer profile and other factors.

Top 10 Home Insurance Firms in Oregon and Average New Home Savings

Home renovations are a great way to freshen up your living space and make it new again. However, they can also drastically affect your homeowners insurance rates. Some updates increase your home's risk or value, increasing your rates. Others make your home safer and may decrease your rates. Still, others have no effect at all.

Home Renovations that Increase Rates

Some home renovations that increase your rates include:

• Luxury Upgrades: If you upgrade your kitchen with granite countertops, an expensive faucet, and luxury appliances, your home insurance rates will increase.
• Swimming Pool: While a swimming pool may be fun for the whole family, insurers view it as a risk, and your home insurance costs more if you have one.
• Add a Fireplace: A fireplace adds coziness and warmth to your home and increases your insurance rates.

Home Renovations that Decrease Rates

Some home renovations that decrease your rates include:

• Update Your Plumbing: Outdated plumbing could cause water damage and flooding, ruining your home. By replacing it, you could save big on your insurance rates.
• Storm-Safe Windows: Storm-safe windows will reinforce your home against storms and make your insurer happy. As a result, they will lower your rates.
• Sump Pump: A sump pump is a great way to prevent your basement from flooding, and your insurance provider will reward you with lower rates.

Typically, replacing your siding will reduce your rates for making your house safer, but using expensive, rare materials could raise them or cancel out any discount.

Home insurance does not pay for upgrades and renovations unless they are performed due to a covered peril. It only pays for damage caused by a weather event, theft, vandalism, or other type of property damage. However, home insurance covers those who get hurt or steal something during renovations. Other things not covered are pest infestations, rodents, and animal damage.

You should always consult your insurance agent before performing any work. They can instruct you on how to proceed and counsel you on how your insurance, including your rates, may need to change.

Oregon renters also need a form of homeowners insurance to protect themselves. Renters insurance differs from homeowners insurance in that it has no dwelling coverage. The property owner must protect the structure with their own policy. What renters insurance does cover is personal property, and it replaces items if they are stolen or destroyed in a covered event. Most policies also include liability, medical payments, and loss of use coverage. Covered perils include fire, smoke, windstorms, theft, and vandalism. Every policy has limits, and expensive items may not be covered.

Some of the items that renters insurance covers are:

Renters insurance is priced according to three main factors, and they are:

Oregon renters pay an average of $11.89 per month, a bit less than the national average of $14.27. Rates are lower in suburban areas and higher in cities.

Condo insurance protects condo owners after a qualifying event. However, it is different from homeowners insurance in a couple of ways. First, each condo association will have its own master policy that covers dwellings and will pay to replace each building and restore it to its original condition (when first built). The problem is that condo owners usually upgrade flooring, fixtures, appliances, kitchens, and baths over time. The condo insurance (HO-6) restores the interior back to its most recent condition with all the upgrades. Condo insurance also includes liability, medical payments, loss of use, and loss assessment coverage. Secondly, the liability portion only covers people who get injured inside the condo, not outside or on common grounds.

Renters' insurance has no dwelling coverage, but condo insurance does at least cover the interior. This is called "walls-in" coverage.

Condo insurance will pay to replace the following items:

• Appliances
• Flooring
• Interior Walls
• Wiring
• Plumbing
• Light Fixtures
• Cabinets
• Countertops
• Personal Belongings

The average renter in Oregon pays about $633 a year or $53 a month for condo insurance. This includes $60,000 of personal property coverage and $300,000 of liability with a $1,000 deductible.

Some ways to save on condo insurance include:

• Raise Your Deductible
• Improve Your Credit
• Stay Claims Free
• Shop Around for the Best Rates
• Bundle Policies
• Improve Home Security
• Install Fire Safety Devices
• Ask for Discounts
• Remain Loyal to the Same Provider
• Review Your Policy Every Year

Oregon is one place where, despite the many potential dangers, the state hasn't drowned in home insurance losses. Until recently, the market has been stable. Oregon providers have made profits until 2020, when wildfires caused the loss of almost $2 billion. Due to many frequent disasters over the past couple of years, the stability is changing, and providers may have to limit coverage or cancel problematic customers.

Oregon has many potential natural disasters, such as earthquakes, wildfires, hurricanes, volcano eruptions, tsunamis, flooding, and landslides. Although the state has been lucky, luck will eventually run out, and that time may be now. If the trend continues, Oregon residents may struggle to get coverage.

Regulation of the home insurance industry is left to each individual state. These agencies monitor providers and evaluate rates. They also take customer complaints, investigate, and sanction guilty firms. They aim to ensure customers are treated equally, fairly, and ethically. In Oregon, that agency is the Insurance Division located at 350 Winter Street, NE, Room 440-2, Salem, OR 97310.