PORTLAND, Ore. (KOIN) — A bill that ensures insurance companies cannot use Oregon’s statewide wildfire risk map as a basis for canceling or refusing to renew policies, or for increasing premiums is now law after Gov. Tina Kotek signed it Monday.
Senate Bill 82 passed the Senate on March 21 and the House on Monday, May 1. It requires insurance companies to make information publicly available about whether and how wildfire risk mitigation actions could impact the insurer’s underwriting and rates. For example, whether creating defensible space around a home will lower a customer’s home insurance premium.
The bill also requires insurance companies to allow their insured clients at least 2 years to repair, rebuild or replace property that was damaged or lost as a result of a wildfire that occurred when the governor invoked the Emergency Conflagration Act.
It prohibits insurance companies from using the state-created wildfire risk map as a reason for canceling or refusing to renew a landowner or homeowners policy, or for increasing their premium.
In Oregon, homeowners have reported insurance companies refusing to renew their policy due to their property’s risk of wildfire.
The state’s Division of Financial Services reassured Oregonians in August 2022 that insurance companies had no plans to use the state-created wildfire risk map in their decisions on whether to increase premiums or drop customers.
However, many still feared this could be the case.
The map serves as a visual representation of what the wildfire risk is for all of Oregon’s 1.8 million tax lots. It was originally released in June 2022, but the state has since rescinded it to get more community input before issuing an updated version.
According to Jason Horton, public information officer for Oregon’s Division of Financial Regulation, each insurance company has its own underwriting practices and risk tolerances that it must apply uniformly across the state.
The Oregon Division of Financial Services said anyone having problems obtaining home or property coverage should first speak to their agent or insurance company. The next step is the Oregon FAIR Plan or the surplus lines market.