Here's something Oregon homeowners are learning the hard way: wildfire insurance isn't a separate policy you buy. It's already included in your standard homeowners insurance. The problem? Many Oregonians are discovering their coverage is being canceled or their premiums are skyrocketing just when they need it most. If you live in Central, Southern, or Eastern Oregon, this is your reality right now.
The numbers tell the story: Oregon saw nearly $3 billion in wildfire losses recently—more than four times the losses from the previous 40 years combined. In 2024 alone, 1.9 million acres burned across the state, breaking the previous record set in 2020. Eastern Oregon's Durkee Fire became the year's largest blaze at 294,000 acres. For homeowners in places like Bend, Ashland, and Medford, annual premiums that used to cost under $1,000 now routinely run $2,000 to $4,000. Some Ashland properties have seen 600% increases over four years.
But here's what you need to know: you have more control over this situation than you think. Understanding how wildfire insurance works in Oregon, what your coverage actually includes, and what steps can protect both your home and your policy can make the difference between affordable coverage and scrambling for options when renewal time comes.
What Your Homeowners Insurance Actually Covers
The good news: every standard homeowners insurance policy in Oregon automatically covers wildfire damage. This includes direct fire damage to your home and other structures on your property, smoke damage to your belongings, and even temporary living expenses if you need to evacuate. Your personal property is covered whether it burns in the house or you lose it during evacuation.
Most policies also include what's called "additional living expenses" or "loss of use" coverage. If a wildfire forces you out of your home, your insurance typically pays for hotel stays, meals, and other costs above your normal living expenses while your home is being repaired or rebuilt. This coverage usually lasts for 12 to 24 months, giving you breathing room to recover.
The challenge isn't whether wildfire is covered—it's getting a policy in the first place, or keeping the one you have at a price you can afford. That's where understanding Oregon's unique insurance landscape becomes critical.
Why Eastern and Central Oregon Are in the Hot Zone
Oregon's wildfire risk isn't evenly distributed. Eastern Oregon faces the highest danger due to a combination of factors: prolonged drought conditions, lower snowpack levels, vast stretches of dry vegetation, and increasingly hot summer temperatures. The wildland-urban interface—where homes meet wild areas—is expanding, putting more properties directly in harm's way.
The Oregon Department of Forestry and Oregon State University created a statewide wildfire hazard map that assigns every property to one of three zones: low, moderate, or high. This classification considers burn probability, potential fire intensity, weather patterns, topography, and vegetation. Counties like Jackson, Josephine, and Deschutes contain significant high-risk areas, which explains why insurance companies are pulling back from these regions.
The 2024 fire season drove the point home. Oregon spent $132 million on wildfire response—more than triple the usual amount—with total suppression costs nearing $317 million. These aren't just statistics; they're the reason your insurance company is rethinking its risk exposure in your neighborhood.
What's Happening to Oregon's Insurance Market
If your insurer sent you a non-renewal notice, you're not alone. Thousands of Oregon homeowners in central, southern, and eastern parts of the state have received similar letters. Some insurance companies have stopped writing new policies in high-risk areas entirely. When insurers do offer coverage, premiums have doubled or quadrupled for most homeowners, with policies under $1,000 per year becoming virtually extinct in fire-prone zones.
Oregon passed legislation in 2023 that offers some protection. Under this law, insurers cannot use the state's wildfire hazard map alone to cancel your policy, refuse to renew it, or increase your premium. They also must notify you specifically if wildfire risk factors are behind any cancellation, non-renewal, or rate increase. This doesn't mean they can't cancel or raise rates—it just means they need to base those decisions on more than the state map and tell you what they're doing.
Starting in 2024, insurers also face transparency requirements around wildfire risk in their rating plans. The goal is to make the process less arbitrary and give homeowners clearer information about why their rates are changing.
Your Coverage Options When Standard Insurance Isn't Available
If you can't get coverage from a standard insurance company, the Oregon FAIR Plan serves as your safety net. Officially called the Oregon Beach and Property Insurance Association, this nonprofit provides last-resort property insurance. As of 2023, coverage limits increased to $600,000 for personal dwellings and farms, and $1 million for commercial properties.
Here's what you need to know about the FAIR Plan: it covers fire, windstorms, hail, explosions, riots, smoke, and volcanic eruption. But it doesn't cover water damage, theft, or liability—things standard policies typically include. You'll need to buy separate liability coverage, which is required if you have a mortgage. The premiums are usually higher than standard policies, and the coverage is more limited. Think of it as expensive, basic protection when nothing else is available.
The FAIR Plan covered about 1,700 properties as of recent reports, with new applicants jumping from 168 in 2020 to 500 in 2023. That tells you how fast the market is tightening. You can also explore surplus lines carriers—insurance companies that specialize in high-risk properties—though these policies also come with higher premiums and may have stricter requirements.
How to Protect Your Home and Lower Your Insurance Costs
Creating defensible space around your home is your most powerful tool for both preventing wildfire damage and keeping your insurance. Defensible space means clearing vegetation and materials that could fuel a fire's spread, giving firefighters room to work and slowing fire advancement toward your home.
The Oregon State Fire Marshal offers free defensible space assessments with specialists across the state who can help you develop a plan. While Oregon recently shifted from mandatory statewide standards to local requirements, creating defensible space remains critical. Remove dead vegetation within at least 30 feet of your home, trim tree branches at least 10 feet from your roof, use fire-resistant materials for roofing and siding, and clear leaves and debris from gutters and roofs.
In 2025, Oregon's State Fire Marshal partnered with the insurance industry to launch the "Wildfire Prepared" certification program. Homeowners who complete specific fire reduction measures can earn certification that may qualify them for insurance discounts. Some insurers, including Farmers, started offering discounts in 2024 for customers implementing Firewise measures. If your property is in a designated Firewise Community, you may also qualify for reduced rates.
These mitigation efforts aren't just about saving money on insurance—they genuinely protect your home. Properties with defensible space are significantly more likely to survive wildfires, and they're less likely to be dropped by insurers looking to reduce their risk exposure.
What to Do Right Now
Start by checking your current policy to understand your coverage limits and what's actually protected. Look at your dwelling coverage—does it reflect current replacement costs with today's construction prices? Review your personal property coverage and consider whether you need additional coverage for high-value items. Make sure you have adequate additional living expense coverage in case of evacuation.
Next, check Oregon's wildfire hazard map to see your property's risk classification. Understanding your risk level helps you anticipate potential insurance challenges and prioritize mitigation work. Contact the State Fire Marshal's office to schedule a free defensible space assessment. The recommendations you receive can guide your mitigation priorities and potentially qualify you for insurance discounts.
If you're facing a cancellation or unaffordable renewal, don't wait until the last minute. Contact an independent insurance agent who works with multiple carriers—they can shop around for options you might not find on your own. Ask about surplus lines carriers and inquire about the FAIR Plan if standard coverage isn't available. Document all the mitigation work you've done with photos and descriptions, as this can help when negotiating with insurers.
Oregon's wildfire insurance landscape is challenging, particularly in Eastern, Central, and Southern regions. But understanding your coverage, knowing your options, and taking proactive steps to protect your property gives you the best chance of maintaining affordable insurance. The combination of state protections, mitigation programs, and last-resort coverage options means you have paths forward, even in a difficult market. Ready to get quotes and compare coverage options? The sooner you start, the more choices you'll have.
