Oregon emergency order pauses insurance cancellations due to wildfire

from the Oregon Department of Consumer and Business Services and the Office of the Governor

Gov. Tina Kotek directed the Oregon Division of Financial Regulation July 31 to immediately prohibit insurance carriers from canceling or nonrenewing homeowners insurance policies for people affected by Oregon’s growing wildfire emergency.

Authorized under ORS 731.870, the directive ensures continuity of insurance coverage and requires all property and casualty insurers to take proactive steps to protect homeowners in wildfire-affected areas.

Under the order, insurers must:

• Suspend cancellations and nonrenewals
• Establish a grace period for premium payments for all insurance policies issued, delivered, or covering a risk in the affected areas
• Extend deadlines for policyholders to report claims or submit other communication related to claims
• Take all practicable steps to provide opportunities for policyholders to report claims

The order applies to all insurance companies transacting property and casualty insurance in Oregon. It provides temporary protections to policyholders in affected areas, including those in ZIP codes subject to wildfire evacuation notices as provided in the order.

The emergency order follows Gov. Tina Kotek’s state of emergency declaration June 16 due to the imminent threat of wildfires. Since that declaration, Gov. Kotek has invoked the Emergency Conflagration Act for 11 fires.

“Last week, I met with fire response teams and community members in Sisters currently challenged by the Akawa Butte Fire,” said Gov. Kotek. “I could not be more proud of the way Oregon communities are supporting each other during this time, but the last thing anyone needs to worry about in this moment is losing their homeowners insurance.

“I’m taking immediate action with this directive to ensure that families and communities across the state that are or will be responding to the catastrophic effects of wildfires this summer are provided with stability and certainty during this ongoing wildfire state of emergency.”

The order protects consumers in ZIP codes under evacuation notices who may be required to leave their homes, businesses, or both, and may be unable to access their property, records, mail, internet, financial information, or other resources.

Evacuation may also inhibit an insured’s ability to communicate with their insurer, make a timely premium payment, report a claim, document a loss, or perform other duties required under insurance contract terms.

Providing these temporary measures extends grace periods for premium payments and postpones cancellations and nonrenewals. They also provide relief from reporting and other required communication related to claims submission and processing for insureds, and they give relief from other duties of insureds that may be burdensome.

These measures will help ensure that Oregonians do not lose insurance coverage because they complied with an evacuation notice or order.

“We issued this order to make sure evacuees and other Oregonians affected by these wildfires are able to access the insurance resources they need, especially while they are displaced,” said Oregon Insurance Commissioner TK Keen. “We appreciate all the work our state’s insurance representatives are doing to help their customers right now, and we encourage everyone to be patient and work together throughout the recovery process.”

If your home or property was damaged by the wildfires, contact your insurance company as soon as possible to discuss your situation and learn next steps. If you still have concerns, the division’s consumer advocates are here to help. Call 888-877-4894 (toll-free) or email dfr.insurancehelp@oregon.gov.

Visit the DFR wildfire insurance resource page to view the order, bulletin, and more insurance information.

Go to Wildfire.Oregon.gov for fire updates and sign up for emergency notifications on oralert.gov.

The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon’s largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.