Homeowners Insurance in Oregon

Standard Homeowners Policy (HO-3)

Oregon homeowners policies typically use the ISO HO-3 (Special Form) which provides:

Coverage A - Dwelling

• Open perils coverage (all risks except those excluded)
• Replacement cost basis (no depreciation)
• Minimum coverage: Typically 80% of replacement cost for full coinsurance benefit
• Extended replacement cost: Often 125-150% of Coverage A limit

Coverage B - Other Structures

• 10% of Coverage A (standard)
• Covers detached garages, sheds, fences
• Same perils as Coverage A

Coverage C - Personal Property

• 50% of Coverage A (standard)
• Named perils coverage on HO-3
• Actual cash value or replacement cost (with endorsement)

Coverage D - Loss of Use

• 20% of Coverage A (standard)
• Covers additional living expenses (ALE)
• Pays for temporary housing if home uninhabitable

Coverage E - Personal Liability

• $100,000 minimum (can increase to $500,000+)
• Covers bodily injury and property damage liability
• Includes medical payments to others ($1,000-$5,000)

Coverage F - Medical Payments

• $1,000-$5,000 per person
• No-fault coverage for guests injured on property

Oregon-Specific Requirements

1. Earthquake Coverage Offer

Mandatory Offer: All homeowners policies must include an offer of earthquake coverage.

• Separate deductible: Typically 10-20% of Coverage A
• Can be declined: In writing by insured
• Cascadia Subduction Zone: Major seismic risk in Oregon
• Higher premiums: In high-risk coastal and Portland areas

Exam Tip: Oregon insurers MUST offer earthquake coverage, but insureds can decline it in writing.

2. Oregon FAIR Plan

The Oregon FAIR Plan (Fair Access to Insurance Requirements) provides property insurance when standard market coverage is unavailable.

3. Wildfire Considerations

Oregon faces significant wildfire risk, especially in:

• Eastern Oregon - High desert regions
• Southern Oregon - Medford, Ashland areas
• Rural interface zones - Where homes meet forests

Wildfire Mitigation:

• Defensible space requirements
• Fire-resistant building materials
• Brush clearance around structures
• May affect insurability and rates

4. Flood Insurance

• Not covered in standard homeowners policies
• NFIP (National Flood Insurance Program) required for flood zones
• Willamette Valley: Flood-prone areas
• Coastal regions: Storm surge and flooding risks