Oregon's wildfire risk has reached a critical inflection point. The 2020 Labor Day fires — which burned over 1.2 million acres, destroyed more than 4,000 structures, and forced the evacuation of hundreds of thousands of Oregonians — fundamentally changed the insurance landscape for homeowners and businesses across the state. What was once considered a manageable risk has become an existential threat to property owners in Central Oregon, Southern Oregon, the Coast Range, and the Willamette Valley foothills.

The insurance industry has responded to this new reality by raising premiums, tightening underwriting standards, and in some cases, non-renewing policies in the highest-risk areas. Oregon homeowners and business owners who haven't reviewed their wildfire coverage recently may be dangerously underinsured — or may not realize that their current carrier is about to drop them. This guide covers everything Oregon property owners need to know about wildfire insurance in 2026.

1. Oregon Wildfire Risk Zones: Where the Highest-Risk Areas Are

Oregon's wildfire risk is not uniform across the state. The Oregon Department of Forestry (ODF) and Oregon State Fire Marshal have developed wildfire risk maps that classify properties by risk level — from low to extreme. Understanding your property's risk classification is the first step to understanding your insurance options and costs.

Oregon Senate Bill 762 (2021) directed the creation of a statewide wildfire risk map and established requirements for defensible space and home hardening in high-risk areas. Properties in "High" and "Extreme" risk zones face the greatest insurance challenges — but also have the most to gain from proactive fire mitigation measures that can improve insurability and reduce premiums.

2. What Oregon Wildfire Insurance Covers (and What It Doesn't)

Most standard homeowners insurance policies cover fire damage — including wildfire — as a named peril. However, the adequacy of that coverage depends on several factors that many Oregon homeowners don't fully understand until they file a claim. Here's what comprehensive wildfire coverage should include, and where the gaps often appear:

3. Oregon's Wildfire Underinsurance Crisis: Are You Covered Enough?

One of the most significant — and least understood — wildfire insurance problems in Oregon is underinsurance. Studies of major wildfire events across the Western United States consistently find that 60–80% of homeowners are underinsured, often by 20–40% or more. This means that even homeowners who have insurance can face devastating financial losses when they discover their policy limits are far below the actual cost to rebuild.

The underinsurance problem has been significantly worsened by the dramatic increase in construction costs since 2020. Material costs, labor shortages, and supply chain disruptions have pushed rebuilding costs far above what many policies were written to cover. A home insured for $400,000 in 2019 might cost $550,000 or more to rebuild in 2026 — leaving the homeowner with a $150,000 gap even after their insurance pays out.

4. Oregon's Wildfire Non-Renewal Crisis: What to Do If Your Insurer Drops You

Since 2020, a growing number of Oregon homeowners in high-risk wildfire zones have received non-renewal notices from their insurance carriers. This trend — which has been more severe in California but is increasingly affecting Oregon — reflects the insurance industry's reassessment of wildfire risk and profitability in the Western United States.

If you receive a non-renewal notice, don't panic — but do act quickly. Oregon law requires carriers to provide at least 30 days' notice before non-renewing a homeowners policy, and you have options. An independent agent with access to multiple carriers and specialty wildfire markets can often find replacement coverage, though it may come at a higher premium. The Oregon FAIR Plan is a last-resort option for homeowners who cannot find coverage in the standard market.

5. Fire Mitigation: How Defensible Space Can Protect Your Home and Insurance

One of the most effective things Oregon homeowners in high-risk wildfire zones can do — both to protect their homes and to maintain insurance coverage — is to invest in fire mitigation. Defensible space, home hardening, and fire-resistant landscaping can significantly reduce the risk of your home being destroyed in a wildfire, and many insurance carriers offer premium discounts for documented fire mitigation measures.

Oregon Senate Bill 762 (2021) established defensible space requirements for properties in high-risk wildfire zones. Properties in "High" and "Extreme" risk areas are required to maintain a defensible space buffer around structures. Compliance with these requirements is not only legally required but can also be a factor in insurance underwriting decisions.

Insure Pacific offers comprehensive fire mitigation services to help Central Oregon homeowners assess their wildfire risk, create defensible space, and document their fire mitigation efforts for insurance purposes. Our fire mitigation team works with insurance carriers to help clients maintain coverage and reduce premiums.

6. Commercial Wildfire Insurance for Oregon Businesses

Oregon businesses in wildfire-prone areas face the same insurance challenges as homeowners — plus additional commercial risks including business interruption, supply chain disruption, and employee displacement. Commercial wildfire insurance is a critical component of any Oregon business's risk management strategy in high-risk zones.

7. Oregon Wildfire Insurance Costs: What to Expect in 2026

Wildfire insurance costs in Oregon have increased significantly since 2020, with the largest increases in the highest-risk zones. Here are typical cost ranges for Oregon homeowners and businesses in different risk categories:

8. Oregon Wildfire Insurance vs. Other Western States

9. Oregon Wildfire Insurance: Frequently Asked Questions