Oregon FAIR Plan Alternative

The state of Oregon is no stranger to historical natural disasters and as such, has created the Oregon FAIR Plan Association (OFPA) to accommodate homeowners with a history of filing homeowners insurance claims and those in high risk areas. Typical of other state FAIR Plans, the coverage offered is typically very basic and provides only fire, windstorm, hail and little other extended coverage. The Oregon FAIR Plan operates like a small insurance company that writes coverage for dwellings, commercial property and farms.

The state of Oregon has historically suffered from extreme weather and there are areas of the state that the many companies private insurance market refuses to offer coverage due to the higher risk involved and historical claims frequency. In the year 2012 alone Oregon suffered from record breaking heat in 10 counties, record breaking snow in 9 counties, record breaking rainfall in 13 counties and a total of 48 massive wildfires. Tornadoes have become a fact of life in the spring and summer and Oregon has seen its share of tornado activity resulting in severe property losses leading to thousands of claims and entire swaths of the state being deemed high risk.

Extreme windstorms other than tornadoes are experience in all regions of Oregon with the greatest amount effecting the North and Central coastal areas. One particular location of interest is Crown Point, which is located about 20 miles east of Portland, where easterly winds of more than 53 mph with gusts in excess of 120 mph have been observed.

As a result of historical severe losses in many areas of the state, the appetite for homeowners risk in the private insurance market has declined. Some homeowners find the only alternative for property owners is to self-insure or look to the Oregon FAIR Plan for coverage. Although coverage available is considered basic with certain limitations, the OFPA is willing to provide coverage to property owners if the private market refuses to do so.

As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.