Natural hazards and home insurance in Oregon

Which hazards affect Oregon homes?

• Cascadia earthquake and tsunami. The state Department of Emergency Management (OEM) describes the Cascadia Subduction Zone as a 700-mile fault that last ruptured on Jan. 26, 1700, with an estimated magnitude of 9.0. OEM says Oregon could see a 9.0+ quake, shaking of five to seven minutes on the coast, and a tsunami up to 100 feet high. It gives about a 37% chance of a 7.1+ megathrust quake in the next 50 years, and says people should expect to be without services for at least two weeks.
• Crustal quakes. OEM notes two damaging 1993 quakes, Scotts Mills (magnitude 5.6) and Klamath Falls (5.9 and 6). DFR says the most seismic activity of the past two decades was in the Portland area and near Klamath Falls.
• Wildfire. DFR says wildfire used to cost insurers about $100 million a year nationwide, but Oregon alone has seen nearly $3 billion in wildfire losses since 2020.
• Floods and landslides. DFR says standard policies exclude both.

What does a home policy cover?

How does earthquake insurance work?

An earthquake deductible is a percentage of the coverage amount, not of the loss. DFR’s example: a $300,000 dwelling limit with a 10% deductible means you pay $30,000 first, and a separate $15,000 deductible applies to $150,000 of contents.

• Earthquake cover does not pay for landslides, erosion, tsunami or volcanic eruption, even when a quake causes them.
• Extra living expenses are covered after a quake only if you have earthquake cover.
• Insurers usually stop selling earthquake cover for a time after a major quake, so buy it beforehand.
• Cost depends on the house type, age, soil and nearness to faults. DFR cites only a 2009 Portland survey ($200 to $300 a year for a wood-frame home), which is too old to rely on. Ask an agent for a current quote.

How does flood insurance work?

DFR says flood insurance is sold through an agent. FEMA’s National Flood Insurance Program (NFIP) covers up to $250,000 on the building and $100,000 on contents for homeowners, and rates are the same whichever insurer sells the policy.

• Waiting period: coverage starts 30 days after purchase. There is no wait if you buy while making, increasing, extending or renewing a mortgage.
• Mortgage rule: in high-risk zones (A or V on FEMA maps), flood insurance is mandatory with a federally backed mortgage if the community takes part in the NFIP.
• Wildfire burn scars: FEMA allows a one-day wait if a flood is caused or worsened by a wildfire on federal land and you buy within 60 days of containment.

Look up the flood zone before you offer. See flood insurance explained.

What changed with Oregon’s wildfire map?

Senate Bill 83 (2025), passed by the Senate on April 22 and the House on June 24, 2025, repealed ORS 477.490, the statute behind the statewide wildfire hazard map. It declared any earlier order placing a property in a wildfire hazard zone “null and void”. It also required the Department of Consumer and Business Services to adopt the wildfire standards of section R327 of the 2023 Oregon Residential Specialty Code, which apply only to new buildings and which no local government is required to adopt.

DFR’s older guidance said insurers use their own models anyway. Insurers still price risk by location, and Oregon law keeps these protections (DFR bill of rights):

• Insurers must give 30 days’ written notice before renewing with changes, reducing or not renewing.
• They cannot cancel or refuse to renew for your first claim in five years.
• A policy cannot be canceled midterm because of active wildfire risk.
• If an insurer raises your premium or non-renews because of wildfire risk, it must give specific reasons in a notice (ORS 742.277).

What if no insurer will cover me?

The Oregon FAIR Plan Association is the insurer of last resort. It was created by the legislature, but it is a nonprofit funded by member insurers, not a state agency. You must be turned down by two standard insurers, and a licensed agent must submit the application.

Its cover is basic: property only, at actual cash value, with no liability or theft cover and no vacant homes. The dwelling limit is $600,000 without special reinsurance. The association says to keep shopping, because if you qualify in the standard market you no longer qualify for the FAIR Plan. DFR says a “wrap-around” policy may add liability and more perils.

What must a seller disclose?

The seller form in ORS 105.464 asks whether a house built before 1974 has been bolted to its foundation, whether the property is in a designated floodplain or a designated slide or other geologic hazard zone, and whether fire, wind, flood, earthquake or landslide damaged it. The buyer has five days from delivery to revoke an offer unless waived. See seller disclosure in Oregon.

What about Portland?

Portland’s 2021 Mitigation Action Plan says earthquakes and floods still have the greatest potential impact on the city. It names three crustal faults (Portland Hills, East Bank and Oatfield) and cites a 16% to 22% chance of a Cascadia quake over magnitude 8.0 in 50 years. It estimates 1,600 unreinforced masonry buildings are not retrofitted, and says Portland takes part in the NFIP and its Community Rating System. See Portland and homeowners insurance.