Oregon's homeowners questions are mostly about the statutes that limit insurers. The main topics are:

• Cancellation and nonrenewal deadlines.
• Limits on using past claims and claim inquiries.
• Home day-care coverage.
• Replacement cost timelines after disasters.
• Several wildfire laws passed in recent sessions.
• The Oregon FAIR Plan.

The HO forms, Coverages A-F, perils and loss settlement are covered in the national Homeowners guide.

Cancellation and nonrenewal (ORS 746.687)

The first 60 days

• During the first 60 days of a new policy, the cancellation restrictions don't apply.
• Even then, the insurer may not cancel because a claim was filed during that time.

After 60 days, the insurer may cancel midterm only for:

• Nonpayment.
• Fraud or misrepresentation.
• Violating policy terms.
• A substantial increase in the risk of loss.
• A determination about the insurer's solvency.

Notice

• Cancellation for nonpayment: 10 days.
• Cancellation for a violation of policy conditions: 30 days.
• Renewal or nonrenewal notice: at least 30 days before expiration.

Claims history and inquiries (ORS 746.686)

• New business: a claim with a date of loss more than 5 years before the application can't be used to decide whether to issue the policy, except to give a discount.
• Renewals: the consumer's first claim in the past 5 years can't be used to decide whether to renew.
• Inquiries: asking whether a loss would be covered, without filing a claim, can't be used for renewal or rating decisions.
• Credit: after 60 days, a homeowners policy can't be canceled or nonrenewed because of credit history (ORS 746.661).
• Premium increases: on written request, the insurer explains a renewal increase by listing up to four main factors (ORS 742.075).

Home day care (ORS 742.260)

• An insurer may not nonrenew solely because the insured runs a registered or certified child care facility in the home.
• Losses from that child care are covered only by a separate policy or endorsement for an added premium.

Replacement cost and disaster rules

Time to rebuild (ORS 742.270)

• If full replacement cost requires rebuilding, the insurer must allow at least 12 months after the first ACV payment for ordinary losses.
• For a primary dwelling lost in a declared state of emergency, the insured gets at least 24 months to rebuild and still collect replacement cost.
• Additional living expense is paid for 24 months after an emergency-related loss, within limits.

Combining limits (ORS 742.273)

• When a declared-emergency loss destroys the home and the dwelling limit isn't enough, the dwelling and other-structures limits are combined for rebuilding, up to the cost to repair or replace the dwelling.

Contents (ORS 742.053)

• After a total contents loss in a declared major disaster, the insurer must offer at least 70% of the contents limit without a written inventory.

Wildfire laws

• A state-published wildfire risk map can't be used to cancel, nonrenew or raise the premium (ORS 742.278).
• A nonrenewal materially related to wildfire risk must describe the mitigation actions the insured could take (ORS 742.277). An example is creating defensible space.
• Homeowners insurers must post on their websites how mitigation may affect underwriting and rates (ORS 737.310(17)).

Fire policy rules that apply to homeowners

• Proof of loss: the insured has 90 days after receiving the insurer's proof-of-loss form to submit it, even if the policy says otherwise (ORS 742.053(2)).
• Lawsuits: must be filed within 24 months after the loss (ORS 742.240).
• More fire policy rules are in the Oregon property and casualty basics guide.

The Oregon FAIR Plan (ORS 735.005-735.145)

• The Oregon FAIR Plan Association makes essential property insurance available to owners who can't get it in the normal market. The law also encourages maximum use of the normal market.
• Essential property insurance means fire and extended coverage plus vandalism and malicious mischief. Auto insurance isn't included.
• Authorized insurers writing essential property lines must be members.

Earthquake

• Homeowners policies don't cover earthquake. Oregon homeowners concerned about Cascadia-zone risk add an earthquake endorsement or buy separate coverage.

Common exam traps

• 60 days: after that, midterm cancellation is limited to the listed reasons. Even in the first 60 days, filing a claim isn't a valid reason to cancel.
• Notice: 10 days for nonpayment; 30 days for a policy-condition violation; 30 days for renewal or nonrenewal.
• Claims history: losses older than 5 years can't be used on new business. The first claim in 5 years can't trigger a nonrenewal.
• Disaster rebuild window: 24 months after a declared emergency, versus 12 months for ordinary losses.
• Contents after a major disaster: 70% without an inventory.
• The FAIR Plan doesn't sell auto insurance.