As climate change intensifies, so too do the risks faced by homeowners, especially in states like Oregon that are prone to wildfires, storms, and extreme weather events. While many of us in the Portland area are aware of the rising temperatures and unpredictable weather patterns, it's becoming increasingly clear that these changes will have lasting consequences on insurance policies, particularly for those of us in the short-term rental community.

In recent years, California has been at the forefront of a troubling trend: as wildfires become more frequent and severe, many homeowners have seen their insurance canceled or their premiums skyrocket. While Oregon has thus far been spared the worst of these effects, experts predict it is only a matter of time before these issues impact our state as well. This is already being reflected in the growing difficulty for homeowners in high-risk areas to obtain affordable insurance coverage.

For short-term rental hosts, the stakes are even higher. If you're renting out your property or planning to do so, understanding how climate change is impacting insurability is essential for protecting your investment and ensuring your property is covered in the event of a disaster.
 

What’s Happening in the Insurance Industry?

As wildfires, hurricanes, and extreme weather events become more frequent, many insurance companies are rethinking their approach to coverage in high-risk areas. Some companies are reducing their exposure to fire-prone zones, while others are pulling out entirely. This means fewer providers are willing to offer coverage, and those that do often increase premiums or impose stricter requirements.

In Oregon, we are already seeing signs that insurers may begin to pull back from higher-risk regions, particularly in areas close to forests or coastal zones. This could put short-term rental hosts in a difficult position when it comes to obtaining the right insurance coverage at an affordable price.

Preparing for the Future: How Hosts Can Protect Themselves

• Review Your Policy: Make sure you have an up-to-date understanding of your current insurance coverage. Does it cover natural disasters like wildfires or floods? Are there exclusions for specific weather-related events? Knowing exactly what’s covered—and what’s not—is the first step in protecting your property.
• Mitigate Risk: Many insurers are more likely to cover homes that have taken steps to reduce risk. Installing fire-resistant materials, maintaining defensible space around your property, and implementing water protection measures can help reduce your exposure to climate-related damage and improve your insurability.
• Stay Informed: The insurance landscape is evolving quickly, and staying informed about the latest trends in climate change, insurance policies, and regional risks is key.

Join Us for Navigating Insurance in the Age of Climate Change

• The latest trends in insurance cancellations and premium increases
• How climate change is shaping the future of insurability in Oregon
• Practical tips for reducing your exposure to climate risks
• What to look for in an insurance policy as a short-term rental host