With a year of unprecedented natural disasters behind us, it’s a critical time to review your insurance coverage for your home and property. The back-to-back hurricanes in Florida and the devastating wildfires in the western U.S. have been sobering reminders of the risks posed by natural disasters. While Oregon may seem far removed from some of these dangers, it still faces significant threats, including wildfires, flooding, and earthquakes. Homeowners across the state should make sure they are adequately protected in case the unthinkable happens.
Homeowners insurance generally covers damage from certain types of natural events, like fires or windstorms, but there are important limitations. Flooding and earthquakes are often not included in standard policies, requiring separate coverage. Given the increasing frequency of natural disasters, it’s more important than ever to understand what your policy covers—and what it doesn’t.
Wildfire Insurance: Oregon has experienced some of the worst wildfire seasons in recent history. Even if your home is not located in a high-risk area, wind can carry embers from distant fires, causing damage or destruction. Standard homeowners insurance often includes coverage for fire damage, but if you live in or near a wildfire-prone zone, it’s advisable to check the specific terms. There may be additional options to increase your coverage for fire-related damage or losses.
Flood Insurance: While Oregon is not typically associated with severe flooding, the state has seen increased rainfall and flash floods in recent years. Areas near rivers, lakes, or coastal regions are particularly at risk. Standard homeowners insurance does not cover flood damage; you must purchase a separate flood insurance policy, often through the National Flood Insurance Program (NFIP). This coverage is vital even if you live in a low to moderate-risk area, as floods can happen almost anywhere.
Earthquake Insurance: Oregon is also vulnerable to seismic activity, especially with the potential threat from the Cascadia Subduction Zone. Earthquake coverage is not included in most standard homeowners policies but can be added as a rider or purchased as a separate policy. Considering the potential for significant property damage in the event of a major earthquake, this insurance is worth evaluating for all homeowners in the state.
It’s crucial to periodically review your insurance policy to ensure it meets your needs, especially after any home renovations or major purchases that could affect your coverage requirements. Check with your local insurance agent to discuss your current policy and identify any gaps. Updating the value of your coverage to match rising construction costs can prevent being underinsured in the event of a disaster.
While federal aid from FEMA can provide some relief after a major disaster, it is typically insufficient to fully rebuild a home or replace all belongings. This assistance is often designed to supplement insurance rather than replace it, making it essential for homeowners to secure adequate coverage beforehand.
Don’t wait for a disaster to hit before reviewing your insurance policies. Call your local insurance agent to confirm that you’re fully covered and educate yourself on the types of insurance you may need. Taking the time now to prepare can mean the difference between quickly recovering from a disaster and facing severe financial loss.
