September 9, 2025
Oregon homeowners still pay below-average insurance premiums, but wildfire losses and climate risks are driving steep increases. Learn key coverage options for 2025.
Oregon homeowners face a complex insurance landscape in 2025, where the state's stunning natural beauty comes with significant environmental risks that are reshaping the homeowners insurance market. The average cost of homeowners insurance in Oregon in 2024 is $1,039 per year, making it one of the more affordable states nationally, yet premiums are rising rapidly due to escalating wildfire threats and climate-related disasters.
Oregon's homeowners insurance premium for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K liability coverage stands at $1,039 per year. This figure falls below the national average of $2,423. However, this affordability is increasingly under pressure as natural disaster losses mount.
Oregon has already seen nearly $3 billion in wildfire insured losses, about $1 billion in winter storm losses and a couple $100 million in wind losses since 2020, according to Oregon's insurance commissioner Andrew Stolfi. That's more than 4 times the last 40 years combined.
The Oregon insurance market mirrors concerning trends seen in other Western states. Premiums are up an average of nearly 30% since 2020, with some homeowners experiencing even more dramatic increases. Nancy Matela co-owns a vacation home in a wildfire zone northwest of Bend that has a new, annual property insurance premium of $9,000. It's more than nine times what the company Safeco charged her a year ago.
Homeowners in Jackson, Hood River, Deschutes, Umatilla and Malheur counties also say they've never seen premiums so high. The 2020 Labor Day fires, which destroyed more than 4,000 homes, becoming the state's most expensive natural disaster in history, marked a turning point for the industry.
Oregon's geographic diversity creates multiple risk exposures that insurers must consider:
The state faces significant wildfire exposure, particularly in southern and central regions. Peak wildfire season in Oregon has arrived. It's expected to last through September and may be just as destructive as the 2024 fire season, which was the state's worst in recorded history. According to the Environmental Protection Agency (EPA), 4% of the state's land has burned each decade, and the changing climate may double that percentage by the end of the 21st century.
Areas of particular concern include Jackson and Klamath Counties, where climate change is raising wildfire and weather-related risks. Most of the high hazard properties are in Jackson and Josephine County, followed by Deschutes County, according to state Senator Jeff Golden.
Oregon also faces risks from flooding, landslides due to heavy rainfall, and earthquakes from the Cascadia Subduction Zone. Oregon experienced 41 confirmed natural disasters with losses exceeding $1 billion each from 1980 to 2024.
Oregon law provides some consumer protections while attempting to balance market stability. Oregon law prohibits insurers from using the maps to adjust rates regarding the state's wildfire hazard maps. Additionally, insurers must provide homeowners with explanations if their policies are canceled or not renewed due to wildfire risks.
The state uses credit scoring in insurance pricing, though it cannot be the sole reason for rate increase or denial. Cancellation and nonrenewal rules require insurers to follow state notice requirements.
Oregon's insurance costs remain competitive compared to neighboring states, though gaps are narrowing:
*Based on $250K dwelling coverage, $125K personal property, $200K liability
Washington homeowners pay an annual premium of $1,410 for policies with $250K Dwelling / $125K Personal Property / $200K Liability coverage, while Idaho's average annual premium for homeowners insurance with $250K dwelling coverage, $125K personal property and $200K liability coverage is $1,448. Nevada's average homeowners insurance premium for a policy with $250K in dwelling coverage, $125K in personal property and $200K in liability coverage is $1,092, and California's average homeowners insurance premium is $1,148 for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage.
Standard homeowners policies don't cover earthquake damage, making earthquake endorsements or standalone policies worth considering given the Cascadia Subduction Zone threat.
The Oregon Legislature continues working on solutions to maintain insurance availability. Golden is behind Senate Bill 1511, which would create a one-time $5 million grant program to help Oregonians establish neighborhood protection groups focused on creating and managing defensible space around homes.
Oregon's State Fire Marshal is collaborating with a nonprofit backed by the insurance industry to help Oregonians protect their homes from burning and keep their premiums from rising. The partnership with the Insurance Institute for Business and Home Safety offers wildfire prevention certification programs.
As Oregon homeowners navigate this challenging insurance environment, some mortgage servicers have partnered with specialized insurance platforms, such as Covered, to offer policy guidance and reduce call center burden. This approach is designed to help homeowners better understand their options and coverage needs, especially amid a changing risk landscape, ultimately improving the overall customer experience during policy renewals and claims situations.*
*Covered Insurance Solutions is a licensed insurance agency. Licensing information is available at itscovered.com/licenses. Covered may earn a commission for policies placed through its platform.
Oregon's homeowners insurance market faces significant challenges from escalating wildfire risks and climate change impacts. While premiums remain below national averages, rapid increases and selective underwriting by insurers signal a market in transition. Homeowners should prioritize home hardening measures, maintain adequate coverage including necessary endorsements, and work with experienced agents to navigate this evolving landscape. The state's commitment to wildfire prevention programs and regulatory balance offers hope for market stability, but proactive risk management by property owners will be essential for maintaining affordable coverage.
Sources: Bankrate, MoneyGeek, NerdWallet, U.S. News, ValuePenguin, Oregon Public Broadcasting, Oregon Capital Chronicle
This article provides general information about Oregon’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
