Oregon Homeowners Insurance

Homeowners Insurance in Oregon: Complete Consumer Guide

Are you about to buy a home in Oregon or already have one? Did you know all these facts about your home state? Oregon has a reversible flag, with a beaver on one side and escutcheon from the state seal on the front. There are more breweries in the city of Portland than in any other city in the whole world (60 total!) and more ghost towns than anywhere in the country (80+). In 1994, Oregon became the first state to legalize physician-assisted suicide. It is rated in the top ten cycling communities in the country and is home to the largest cheese factory in the world. The hazelnut, also called the filbert, is Oregon’s state nut because 99% of the crop is grown here. Clint Eastwood lived here and worked in a sawmill for a few weeks before learning that being a lumberjack was dangerous. The gas stations in Oregon are full-service, and only New Jersey follows suit. And there are more than 750 vineyards in this state. Sounds like a great place to live. Now, let’s look at your homeowners insurance.

Types of policy for Homeowners Insurance in Oregon

The HO-1 Basic Form is the most limited and many insurers do not offer it. It only covers minimal perils, 10 to be exact. These include fire/lightning, windstorm or hail, explosion, riot/civil commotion, accidents caused by aircraft or vehicle, smoke, vandalism/theft and falling objects.

The HO-2 Broad Form is also not as common but covers more perils in addition to the ones mentioned above: weight of snow, ice and/sleet; accidental discharge/overflow of water or stream; certain disasters related to built-in water heaters, air conditioners or heating systems; freezing; an electric current that causes damage; and volcanic eruptions.

The HO-3 Special Form is the most commonly purchased type of homeowners insurance. It covers all of the perils named in HO-1 and HO-2 plus others. It’s considered an “all-risk” coverage but you must look at exclusions, which are not covered. The most common exclusions are flood and earthquake, which are sold as separate policies. Also commonly excluded are: ordinance or law, earth movement, certain types of water damage (but not flood), power failure, neglect, intentional loss, actions taken by governmental authorities, theft to a dwelling under construction, vandalism on a home left vacant for more than 60 days, infestations, like mold, fungus or fleas, and more. It’s important to always check the exclusions on your declarations page to know what you’re covered for and not.

HO-4 is for renters. Make sure you have tenants who rent in your home buy a policy to protect their belongings in case of a disaster.

HO-5 Comprehensive Form is the most inclusive single-family coverage you can buy. There are differences between the HO-3 and HO-5, for example, HO-5 homes/dwellings and belongings are covered at replacement cost but must be added in an HO-3 to cover personal property. An HO-5 also covers all risks for dwelling and personal property but HO-3 only has named peril coverage for personal property. This type of policy is for more expensive properties and high net-worth individuals.

HO-6 Unit-owners Form is for condo owners. Always seek to cover what’s not covered in your HOA insurance. The structure of the building, for instance, is not covered by condo/home insurance but your HOA. For coverage of upgrades, you’ll need to have the appropriate amount of dwelling coverage. You’ll also have personal property coverage, loss-of-use coverage, personal liability coverage and medical payments coverage (possibly more).

HO-8 Modified Coverage Form is often used by owners of older homes, which are higher risk due to construction materials, outdated plumbing systems and an old roof that’s in need of replacing. If your wiring is aluminum, for instance, you’ll need to upgrade to copper for an HO-3 but you may be eligible for an HO-8. Check with a trusted agent.

What factors affect rates on homeowners insurance in Oregon?

Many factors impact home insurance rates, like the value of your home, how much it will cost to rebuild, the construction materials your home is made of, where you live, your credit score and more. Some variables are in your hands, others are not. Different insurers weigh factors differently. That’s why it’s important to comparison shop before buying a policy.

Top 5 disasters in the State of Oregon

Oregon federally declared Fire as the most common disaster, with 93 counts since 1953, followed by Flood, Severe Storms, Biological, and Earthquake. Fire or Lightning is one of 16 perils covered in a standard homeowners policies. Here are the top 5 federally declared disasters in the state of Oregon:

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Oregon?

The average homeowners insurance cost is $950 a year, but many factors play into how your rate is determined.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Oregon a safe state?

*Rate per 100,000 inhabitants

Safest Cities in Oregon by Property Crime*

• West Linn, OR has a population of 26,962 with a Property Crime rate of 8.6 per 1k. The city average home value is approximately $578,239.
• St. Helens, OR has a population of 13,900 with a Property Crime rate of 10 per 1k. The average home value there is about $320,469.
• Canby, OR came in third as the safest city in the state of Oregon and has a population of 17,962 with a Property Crime rate of 10.4 per 1k. Its home value averaged at about $434,086.
• Sherwood, OR has a population of 19,865 with a Property Crime rate of 10.9 per 1k. Its average home value is $479,795.
• Monmouth, OR has a population of 10,630 with a Property Crime rate of 12 per 1k. The city home value averaged $336,456.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Oregon

Top homeowners insurance companies in Oregon

Allstate ranks highest in Oregon, with an A+ from A.M. Best and 3/5 stars from J.D. Power for customer satisfaction.

American Family comes in next with an A from A.M. Best for financial strength and 3/5 stars for customer satisfaction.

Farmers got an A+ from A.M. Best and a 3/5 rating from J.D. Power.

If you prefer a smaller company, Metropolitan Insurance gets an A- from A.M. Best!

Oregon Home Insurance FAQs

What is the best auto & home insurance in Oregon?

You can earn up to 29% in discounts when you bundle home and auto with American family. You only get 10% with Metropolitan Insurance. But it’s interesting to find out which ends up saving you the most. You won’t know unless you compare!

Can homeowners insurance waive a deductible?

Some insurance companies will offer a deductible waiver but most will not. There is also such a thing as a “vanishing deductible” or “diminishing deductible” which is a type of policy in which you earn points or dollars off your deductible over time and under certain conditions. American Family and Nationwide are just two companies that offer this option.

Can I sell my house with an open insurance claim?

It’s never a great idea to sell a house that it’s in disrepair, but you can do so while there is a claim open. It’s highly advised that you wait until your home is repaired to sell but if you must sell it as-is a seller’s disclosure form is in order.