Insurers across the country are leaving high-risk areas that are affected by disasters such as wildfires. In Central and Southern Oregon, homeowners are facing higher insurance premiums and are struggling with a changing market.

It’s a problem that Jeff Golden knows all too well. The Democratic state senator represents cities in Southern Oregon including Talent, Ashland and Phoenix.

In January, Oregon released wildfire hazard maps that create new rules for those living in high-risk areas prone to fire. Golden recently held a town hall in Medford and spoke with frustrated residents who were worried about the state’s final map.

“I have a lot of really concerned constituents. Most of the high hazard properties are in Jackson and Josephine County, followed by Deschutes County,” he said. “The mapping is really hard for people to understand on the ground.”

Oregon law prohibits insurers from using the maps to adjust rates.

Golden said he plans to bring back a bill during the current legislative session to help communities affected by wildfires and rising premiums.

The bill would direct the Oregon State Fire Marshal to create a program for neighborhoods that would get certification for reducing their fire risk.

Risk assessors would walk through properties and identify home hardening measures, such as trimming trees or clearing mulch around the home.

“If the neighbors do that … they do get a certification that we are sort of negotiating with the insurance industry to factor into their premium setting decisions,” Golden said, while acknowledging that the state can’t force insurance carriers to lower their rates.

Golden’s two previous attempts at passing the bill in Salem failed.

“It’s had widespread policy support and then goes down to Ways and Means with 1,000 other things and doesn’t get the attention it needs,” he said.

Still, wildfire funding remains a key priority for lawmakers and Gov. Tina Kotek. In December, the state legislature allocated $218 million to cover costs associated with last year’s record-breaking wildfire season during a special session called by the governor.

As state officials grapple with wildfire expenses, insurance claims have skyrocketed in Oregon. Natural disasters are a big reason for that increase since 2020, according to Andrew Stolfi, the director of the Oregon Department of Consumer and Business Services and the state’s insurance commissioner.

“We’ve already seen nearly $3 billion in wildfire insured losses, about $1 billion in winter storm losses and a couple $100 million in wind losses,” he said. “That’s more than 4 times the last 40 years combined.”

Despite the climbing number of insurance claims, Golden said it’s tough to keep residents from creating homes in high-risk areas.

“It’s a crucially difficult sociological problem,” he said. “Do we want to keep building in areas where there are flood plains or hurricane alleys or wildfire zones, that odds say are going to get destroyed again soon? It’s a really tough dilemma.”

“Think Out Loud” host Dave Miller spoke to Sen. Jeff Golden and Oregon insurance commissioner Andrew Stolfi about insurance and wildfires in Oregon. Listen to the full conversation:

News Source : https://www.opb.org/article/2025/02/06/oregon-homeowners-face-rising-insurance-costs-wildfire-risk-grows/