A major insurance company has canceled coverage for hundreds of homeowners in Oregon, leaving residents scrambling to protect their properties — and paying significantly more.
What's happening?
As the Central Oregon Daily News reported, Farmers Insurance scrapped coverage for about 200 homes in the Camp Polk area, several miles north of Sisters.
Karen Whisler, who depended on Farmers for coverage for 15 years, was among the policyholders who received a cancellation notice and feared she would lose her house.
"It's terrifying if you can't find insurance or you can't afford your insurance," she told the publication. "You know your mortgage company requires you to have insurance."
Ultimately, she found coverage with Allstate; however, she now pays $5,000 more per year for a policy with a deductible over $9,000 higher than that of her previous coverage.
Why is this important?
Farmers Insurance didn't reply to the Daily News' request for a statement, but according to Country Financial Services agent Linda Alldredge, the residents' homes likely didn't meet requirements because they are in areas with a high wildfire risk. As the Oregon Department of Transportation explains, wildfires are a "chronic" issue in the Beaver State.
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The problem is expected to worsen. Temperatures are rising at an accelerated rate because of human activities, particularly the burning of dirty fuels, and supercharging extreme weather.
A volatile insurance market is also impacting residents outside of Oregon, from California to Florida to traditionally low-risk areas in the Midwest such as Iowa, threatening housing security and lengthening disaster recovery times as even those with policies struggle to retrieve their claims.
What's being done about this?
Alldredge told Central Oregon Daily that her business educates homeowners on how to reduce their fire risk — which could prevent a huge headache down the road.
"I want a policy that's approved. Also one that's well written, because you don't want to go through a claim and then not have the value be the proper value on your house," she said.
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Definitely 🙁 Alldredge added that Country Financial doesn't have plans to cancel existing policies but acknowledged that its premiums are increasing, too.
Fire-risk reduction actions include fire-resistant building materials, which have helped protect homes elsewhere.
Some jurisdictions in California have introduced legislation that would require the clearing of combustible materials within a certain distance of structures.
These techniques can help manage the situation and provide relief in the short term. In the long term, cooling down the planet's temperatures could help stabilize an insurance industry in turmoil because of extreme weather.
You can contribute to these efforts by upgrading to energy-efficient, money-saving appliances, depending less on dirty fuel-derived plastics, and supporting companies that value sustainability.
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