Oregon's Wildfire Insurance Crisis: What Central Oregon Homeowners Must Know in 2026

Oregon's Wildfire Insurance Crisis: What Central Oregon Homeowners Must Know in 2026

For homeowners in Bend, Sisters, Redmond, Prineville, and the surrounding communities of Central Oregon, wildfire is not an abstract future risk — it is a present and recurring reality. The 2020 Labor Day fires destroyed more than 4,000 Oregon homes in a single catastrophic event, and every fire season since has reinforced that the question is not whether wildfires will occur, but where and how severe they will be. What has changed dramatically in the years since is the response of the insurance industry — and the consequences for homeowners who are unprepared.

The Market Withdrawal: What Is Happening and Why

Since 2020, several major insurance carriers have quietly adjusted their underwriting criteria for Oregon properties in high wildfire-risk zones. Some have stopped writing new policies in specific Deschutes, Crook, and Jefferson County ZIP codes. Others have non-renewed existing policies, leaving long-time customers scrambling to find replacement coverage. Oregon's Department of Consumer and Business Services reports that statewide homeowners insurance premiums have risen nearly 30% since 2020, with increases in high-risk areas far exceeding that average.

The underlying driver is straightforward: insurers are paying out more in wildfire claims than they are collecting in premiums in certain markets. When a carrier determines that a geographic area no longer produces an acceptable underwriting result, the business response is to reduce exposure — either by raising rates dramatically, tightening underwriting criteria, or exiting the market entirely. California has experienced this dynamic most acutely, with State Farm, Allstate, and others pausing new homeowners policy applications. Oregon has not yet reached California's level of market disruption, but the trajectory is visible.

Oregon's Legislative and Regulatory Response

Oregon's state government has been active in responding to the insurance market challenge. In May 2025, State Fire Marshal Mariana Ruiz-Temple signed a memorandum of agreement with the Insurance Institute for Business and Home Safety (IBHS) to bring the Wildfire Prepared certification program to Oregon. The program offers homeowners in California, and now Oregon, certificates for undertaking specific wildfire prevention work around their homes — and insurers are beginning to incorporate this certification into their underwriting decisions.

Governor Tina Kotek has been direct about the stakes: "What I think is important for us is that we continue to have insurance for our homeowners here, despite the wildfire risk. That's not true in other states." Oregon's Insurance Commissioner Andrew Stolfi has stated that when consumers and the state invest in reducing wildfire risk, insurers should reflect that progress in rating and underwriting, helping to keep coverage available and affordable.

What This Means for Central Oregon Homeowners

If you own a home in a wildfire-prone area of Central Oregon, the most important action you can take right now is to review your current policy and understand your renewal status. Do not wait for a non-renewal notice to arrive — by then, your options may be more limited and more expensive. Contact your <strong>Insure Pacific</strong> agent for a coverage review and to discuss what mitigation steps may help you retain your current carrier or qualify for a better alternative.

If you have already received a non-renewal notice, know that you have options. Oregon still has an active insurance market, and <strong>Insure Pacific</strong> works with specialty admitted carriers, surplus lines markets, and the Oregon FAIR Plan to ensure that no homeowner is left without protection. The key is acting quickly — replacement coverage must be secured before your current policy expires.

The Path Forward: Mitigation as Insurance Strategy

The most durable solution to Oregon's wildfire insurance challenge is not regulatory — it is physical. Homes that are hardened against ember intrusion, surrounded by defensible space, and certified under programs like Wildfire Prepared are more likely to survive wildfires and more likely to remain insurable at reasonable rates. <strong>Insure Pacific</strong> encourages every Central Oregon homeowner to treat fire mitigation not as a landscaping project but as an insurance strategy — one with measurable financial returns in the form of retained coverage and lower premiums.

At <strong>Insure Pacific</strong>, we have been navigating Oregon's insurance market since 1935. We know which carriers are writing, what they require, and how to position your property for the best possible outcome. Call us today for a no-obligation coverage review and wildfire risk assessment.