Wildfire Insurance Guide for Oregon Homeowners

Standard homeowners insurance policies in Oregon cover wildfire as a named peril — meaning fire damage is included in the base policy. However, the critical questions are not whether wildfire is covered, but whether your coverage limits are adequate and whether your policy includes the right coverage components.

Dwelling Coverage Limits: The most common problem Oregon homeowners discover after a wildfire is that their dwelling coverage limit is insufficient to rebuild their home at today's construction costs. Post-fire construction demand, supply chain disruptions, and labor shortages can drive rebuilding costs 30–50% above pre-loss estimates. If your dwelling limit hasn't been updated in several years, it may be significantly underinsured.

Extended Replacement Cost: This coverage pays for rebuilding costs above your policy's dwelling limit — typically up to 25–50% above the stated limit. In Oregon's post-wildfire construction environment, extended replacement cost coverage is essential for homeowners in high-risk areas.

Additional Living Expense (ALE): ALE pays for temporary housing, meals, and related costs while your home is uninhabitable. After a major wildfire, rebuilding can take 18–36 months. Make sure your ALE limit and time period are sufficient to cover this extended displacement.

Personal Property: Standard policies cover personal property at actual cash value (ACV), which deducts for depreciation. Replacement cost coverage for personal property pays what it actually costs to replace items — a significant difference for electronics, appliances, and furniture.