Wildfire Insurance Coverage Oregon: New Rules Affecting Homeowner Premiums in 2026
Oregon faced its most expensive fire season ever in 2024, with costs exceeding $350 million. These devastating fires have transformed homeowners’ insurance coverage needs. Property insurance rates have jumped 30% since 2020. Residents in high-risk areas now struggle to find affordable coverage, and some can’t get insurance at all.
The wildfire threat looms over much of Oregon’s property landscape. New rules now affect 6% of the state’s roughly 1.9 million tax lots. Many homes throughout Oregon face high or extreme risk of wildfire damage. The situation isn’t hopeless though. New certification programs offer solutions. Insurance companies in California must provide discounts when homeowners complete wildfire mitigation work. Oregon plans to roll out similar measures to help control rising premiums.
New insurance rules could change your premium costs in Oregon. Understanding wildfire hazard maps, defensible space requirements, and certification processes becomes crucial. These elements play a key role in keeping your insurance coverage affordable, especially if you live in high-risk areas.
New Wildfire Hazard Maps and Risk Zones in Oregon
Oregon’s Department of Forestry and Oregon State University unveiled their statewide wildfire hazard maps on January 7, 2025. This marks a transformation in the state’s approach to assessing and managing wildfire risks. The maps emerged from years of work that started after the catastrophic 2020 Labor Day fires burned more than a million acres and destroyed thousands of homes.
2026 Update: High-Risk Zones and Tax Lot Impact
The new maps show approximately 106,000 tax lots fall within both high hazard zones and the wildland-urban interface. This represents 6% of Oregon’s 1.9 million total lots. Homeowners in these areas must now meet defensible space and building code standards. Early January saw affected property owners receive notification packets through certified mail that included details about their appeal rights.
Property owners had until March 10, 2025, to file appeals. However, Governor Kotek asked the Oregon Department of Forestry to halt appeal processing until the legislative session ends in June. This helps homeowners avoid legal fees while lawmakers review possible changes to map requirements.
Wildland-Urban Interface Classification Criteria
The wildland-urban interface (WUI) refers to “the geographic area where structures and other human development meet or intermingle with forests, rangelands and other vegetation”. Properties need these specific density thresholds for WUI classification:
- A minimum of one structure per 40 acres, and either:
- At least 50% coverage of wildland or vegetative fuels, or
- Location within 1.5 miles of a large area (over 1 square mile) with at least 75% wildland fuels
WUI classifications come in three types: intermix (areas with >50% vegetation), interface (areas with <50% vegetation but near large fuel patches), and occluded (areas near moderate-sized fuel patches).
How Hazard Maps Are Developed by OSU and ODF
Scientists at Oregon State University created these maps using four required criteria: weather, climate, topography, and vegetation. They combined fire probability with potential fire intensity to get a full picture of hazards.
The team analyzed historical fire data and ran simulations of more than 10,000 possible fire seasons under different weather conditions. Properties receive hazard zone assignments based on these values:
- Low: hazard value less than 0.001911
- Moderate: value between 0.001911 and 0.137872
- High: value exceeding 0.137872
Senate Bill 82 stops insurance companies from using these state hazard maps to adjust their rates. However, insurers can still use their own risk models to set wildfire insurance premiums in Oregon.
Defensible Space and Home Hardening Requirements
A property’s defensible space is vital to protect homes where wildfires pose a risk. Oregon homeowners need to understand specific standards that affect their wildfire insurance coverage.
5-Foot Non-Combustible Buffer Zone Rule
The substance of Oregon’s defensible space code lies in a 5-foot non-combustible buffer around structures. Your buffer zone must not have any combustible materials:
- No trees or overhanging branches
- No mulch, grass, or turf
- No wood or vinyl fencing
- No flammable vegetation of any kind
River rock, gravel, paver stones, or concrete should fill this perimeter instead. This buffer becomes your home’s first defense line since embers cause up to 90% of structural ignitions during wildfires.
Fire-Resistant Roofing and Siding Materials
Wildfires make your roof one of the most vulnerable parts of your home. Class A roofing materials like asphalt fiberglass composition shingles, clay tiles, cementitious tiles, or certain metal products will give maximum protection. These materials undergo rigorous fire resistance testing.
Expert recommendations for siding include:
- Non-combustible options like fiber cement board, brick, or metal
- James Hardie Fiber Cement Siding that resists direct flames
- Traditional siding that stays nowhere near flammable vegetation
Professional installation works better, especially when you have wildfire-prone areas. Even wood siding can resist fire if you manage to keep it in good condition away from flammable materials.
Annual Photo Submissions and 3-Year Recertification
Your wildfire preparedness certification needs yearly photo evidence that shows you maintain defensible space. Photos must display all four sides of your home with the non-combustible buffer intact. On top of that, you need complete recertification every three years.
You have two choices for recertification: self-evaluation with photo submission ($25) or third-party evaluation ($100). This ongoing verification helps you retain compliance with defensible space standards that affect Oregon homeowners insurance rates.
Wildfire Prepared Certification and Insurance Discounts
The Insurance Institute for Business and Home Safety (IBHS) has a great certification program that could lower your wildfire insurance costs in Oregon. Major insurers like State Farm and Farmers Insurance endorse this program, which lets homeowners show their wildfire readiness.
Eligibility Criteria for Single-Family Homes
Your property must meet these requirements to qualify for Wildfire Prepared certification:
- Be a single-family, detached home of three stories or less
- Be owned (not rented) by the applicant
- Be located in Oregon or California
- Not be a townhouse, condo, multiplex, or apartment building
Certification Process: Application, Photos, and Inspection
The certification follows these key steps:
- We created a 5-foot noncombustible buffer around your home as part of the preparation work
- Register on the IBHS portal and pay the $125 application fee
- Submit photos of your home’s all four sides to show the noncombustible zone
- A third-party inspector will verify your compliance
Potential Premium Reductions for Certified Homes
Certified homes may qualify for discounts on the Catastrophe Fire portion of their premium. Oregon’s Insurance Commissioner Andrew Stolfi believes this certification helps homeowners “keep and afford insurance”. The certification stays valid for three years, but you need to submit photos yearly to show proper maintenance. Mercury Insurance now partners with IBHS to give premium discounts to certified policyholders in wildfire-prone areas.
Legal Protections and Insurance Market Impacts
Oregon legislators have created most important legal protections for homeowners in wildfire-prone areas. These safeguards want to give fair treatment in the wildfire insurance coverage Oregon marketplace.
Senate Bill 82: Prohibiting Use of State Maps for Premium Hikes
Senate Bill 82, passed in 2023, does not allow insurance companies to use any state-produced wildfire risk maps to cancel policies, decline renewals, or increase premiums. Insurance companies must tell homeowners if their policy is canceled or not renewed due to wildfire risk. They must explain the property-specific characteristics that led to the decision.
Insurer Risk Models vs. State Hazard Maps
Insurance companies create their own sophisticated risk assessment tools instead of using state maps. They use proprietary models from vendors like Verisk that include topographic data, fuel load information, and historical weather patterns. These private industry models have worked well for years, which makes the state wildfire hazard map unnecessary for insurance purposes.
Availability of Homeowners Insurance in High-Risk Areas
Oregon has a strong homeowners insurance market with over 100 companies actively writing policies across the state. In spite of that, properties deemed too high-risk can turn to the Oregon FAIR Plan. This plan acts as an insurer of last resort and offers simple property coverage at actual cash value. This “safety net” will give all homeowners at least minimal coverage, whatever their wildfire risk classification.
Get Covered Today
Oregon homeowners face new insurance challenges as wildfires continue to reshape the scene in 2025. New hazard maps now affect thousands of properties. The changes impact 106,000 tax lots that are now in the high-risk category. These developments bring both challenges and opportunities your way.
Your most crucial step is to create defensible space around your home. Embers cause up to 90% of structural ignitions during wildfires, which makes the 5-foot non-combustible buffer requirement vital. Fire-resistant building materials will substantially improve your home’s chance of survival during a wildfire.
Certification programs are a great way to get benefits for proactive homeowners. The IBHS Wildfire Prepared certification might require some upfront investment and maintenance, but it could lower your premium costs. Insurance companies value this certification increasingly as it shows your steadfast dedication to wildfire safety standards.
Legal safeguards protect you from unfair treatment despite rising costs. Senate Bill 82 stops insurers from using state wildfire maps to raise your premiums or cancel policies. Oregon’s insurance market includes over 100 companies that write policies. The FAIR Plan serves as a safety net for high-risk properties.
Oregon’s wildfire risks just need a smart approach. You can better protect your property and financial interests by preparing properly, strengthening your home, and staying informed about regulatory changes. These steps help you secure more affordable coverage and make your home more resilient against the growing wildfire threat in Oregon’s communities.