Senate Bill 82 will ensure customers are informed by providers about potential policy changes.
Senate Bill 82 is on its way to Governor Kotek’s desk after passing through the Oregon legislature.
This bill states that insurance companies cannot use state wildfire maps to set rates or make underwriting decisions. It also requires providers to be transparent in any changes to premiums as a result of a change in fire risk.
Wildfire Risk Map- Photo From Planetizen
Over the last several years as severe wildfires continue to sweep through our forests heading closer and closer to rural communities, lawmakers have reported that customers are receiving increased rates on their insurance or cancelled policies.
Representative Pam Marsh said Senate Bill 82 will make sure customers are informed by providers about potential discounts or reasoning for a policy change.
Megan Allison from KATU stated on her Twitter account “This bill says insurance companies cannot use state wildfire maps to set rates. It also requires providers to be transparent in any changes to premiums as a result of fire risk.”
Kenton Brine, president of the Northwest Insurance Council, said things like defensible space can make a difference in protecting homes, but it may not be enough to change a person’s policy.
“There’s no doubt that defensible space works, but there is a lot of research going on now in fire science and insurance in fact, I would say insurance is one of the leading entities that are working on this to put science around what actually works,” he said.
More danger for homeowners means more risk for insurance companies. Brine anticipates providers will be careful about how much risk they take on in a particular area. With wildfire severity on the rise in recent years, insurance companies are beginning to pull back in some areas. Insurance rates are likely to be affected, but the marketplace remains robust, available, and affordable “for the most part” says Brine.
More information about the bill can be found here.
Source: KMTR and Planetizen