Oregon Fire, Dwelling and Homeowners Policy Requirements

The dwelling and homeowners forms you studied earlier are national forms, written to be used in every state. Oregon law sets rules that every fire, dwelling and homeowners policy on Oregon property must follow, and an insurer that uses a national form in Oregon must conform it to them. This chapter covers Oregon’s standard fire policy, the Oregon rules that change a dwelling or homeowners policy, and Oregon’s rules for a home used for business or child care.

Perils insured against: Basic — Oregon (ORS 742.202 to 742.246)

The Oregon standard fire policy

Oregon writes the terms of a basic fire policy into its statutes. A fire insurer may not issue or renew a fire policy on property in Oregon unless the policy contains the provisions of ORS 742.206 to 742.242, which become part of the contract (ORS 742.202). Together, those provisions are the Oregon standard fire policy.

A policy that covers fire and substantial other perils, on an unspecified basis or for a single premium, such as a homeowners policy, does not have to repeat that wording. It is excused only if (ORS 742.204):

• Its coverage for fire is not less than the substantial equivalent of the standard fire policy
• The Director of the Department of Consumer and Business Services has reviewed it and found it is not unintelligible, uncertain, ambiguous, abstruse or likely to mislead (ORS 742.005)
• It is complete on its own terms, without referring to the standard fire policy or any other policy

So a dwelling or homeowners form that covers fire and substantial other perils may be worded differently from the standard fire policy, but only if its fire coverage is at least the substantial equivalent of the standard fire policy’s, the Director has reviewed it, and it is complete on its own terms. A fire insurer may add to a standard fire policy other conditions and agreements that do not conflict with law or public policy, and any provision that restricts the insured’s rights must be preceded by an explanatory title printed in capital letters of at least eight-point type (ORS 742.246).

What the standard fire policy covers (ORS 742.206)

The insuring agreement covers direct loss by fire, lightning, and removal of property from premises endangered by an insured peril. Property removed to protect it is covered pro rata for five days at each place it is moved to. The policy pays:

• The actual cash value of the property at the time of loss
• But no more than it would cost to repair or replace the property with material of like kind and quality within a reasonable time
• With no allowance for extra repair cost caused by an ordinance or law, and nothing for interruption of business
• And never more than the insured’s interest in the property

Coverage begins at 12:01 a.m. at the location of the property (ORS 742.206; ORS 742.048). The policy may not be assigned without the insurer’s written consent.

Any other peril, such as windstorm or theft, is added only by a written indorsement (ORS 742.218). That is how other perils are added to a standard fire policy.

Property and causes of loss not covered (ORS 742.210, 742.212)

The standard fire policy does not cover accounts, bills, currency, deeds, evidences of debt, money or securities. It covers bullion or manuscripts only if they are specifically named in writing.

It does not pay for loss caused, directly or indirectly, by:

• Enemy attack by armed forces, invasion, insurrection, rebellion, revolution, civil war or usurped power
• An order of a civil authority, except destruction ordered at the time of a fire to keep it from spreading, as long as that fire did not start from an excluded peril
• The insured’s neglect to use all reasonable means to save and preserve the property at and after a loss, or when it is endangered by fire in neighboring premises

The insurer is also not liable for loss by theft.

The insurer may also state that the policy does not cover nuclear reaction, nuclear radiation or radioactive contamination, and may add an indorsement that covers it (ORS 742.244).

Conditions suspending insurance (ORS 742.216)

Unless the policy provides otherwise in writing, the insurer is not liable for a loss that happens:

• While the hazard is increased by any means within the insured’s control or knowledge
• While a described building is vacant or unoccupied beyond 60 consecutive days, whether it is meant to be occupied by the owner or a tenant
• From explosion or riot, unless fire follows, and then only for the fire loss

The first two conditions suspend coverage only while they last and do not end the policy; the third excludes explosion and riot losses unless fire follows.

Other insurance, added provisions and waivers (ORS 742.214 to 742.222)

• Other insurance may be prohibited, or the amount of insurance limited, by indorsement (ORS 742.214)
• Other provisions that are not inconsistent with the policy may be added in writing (ORS 742.220)
• A waiver of any provision is valid only if it is in the policy or in writing added to it. The insurer does not waive anything by asking for an appraisal or an examination (ORS 742.222)

Concealment, fraud and representations (ORS 742.208)

The whole policy is void if, before or after a loss, the insured has willfully concealed or misrepresented a material fact, or has committed fraud or false swearing about the insurance or the property.

Without fraud, the insured’s statements are representations, not warranties. A statement that came from an error in the application can be used to defend against a claim only if it is in a written application and a copy of the application was attached to the policy when it was issued. To use a representation in defense of a claim, the insurer must show that it was material and that the insurer relied on it.

The mortgagee (ORS 742.226)

When loss is payable to a mortgagee that is not the insured:

• The mortgagee’s interest may be cancelled by giving the mortgagee 10 days’ written notice
• If the insured fails to file a proof of loss, the mortgagee must file one within 60 days after notice, and is subject to the policy’s provisions on appraisal, time of payment and bringing suit
• If the insurer claims it owes nothing to the owner but pays the mortgagee, it takes over (is subrogated to) the mortgagee’s rights to the extent of that payment, without impairing the mortgagee’s right to sue. Or it may pay off the mortgage debt and take an assignment of the debt and the mortgage

Pro rata liability (ORS 742.228)

The insurer pays no greater share of a loss than its amount of insurance bears to all the insurance covering the property against that peril, whether that other insurance is collectible or not.

Requirements in case loss occurs (ORS 742.230, 742.053)

After a loss, the insured must:

• Give the insurer immediate written notice
• Protect the property from further damage
• Separate damaged from undamaged personal property, put it in the best possible order, and furnish a complete inventory
• Submit a proof of loss, signed and sworn to, within 90 days after receiving the insurer’s proof of loss forms, unless the insurer extends that time in writing
• As often as reasonably required, exhibit what remains of the property, submit to examinations under oath, and produce books of account, bills and invoices

For fire insurance, the 90 days runs from the day the insured receives the insurer’s form, notwithstanding any more restrictive requirement in the policy (ORS 742.053(2)). An insurer must provide proof of loss forms when it receives a written request for them.

Appraisal (ORS 742.232)

If the insured and the insurer disagree about the actual cash value or the amount of loss, either may make a written demand for appraisal:

• Each side selects a competent, disinterested appraiser and notifies the other within 20 days of the demand
• The two appraisers select an umpire. If they cannot agree on one within 15 days, a judge of a court of record in the state where the property is located selects the umpire, on request of either party
• A written award by any two of the three, once filed with the insurer, sets the actual cash value and the amount of loss for a party bound by the appraisal (see below)
• Each side pays its own appraiser, and the two sides split equally the umpire’s fee and the other costs of appraisal

In Oregon, an appraisal binds only a party that asked for it. The Oregon Supreme Court held in Molodyh v. Truck Insurance Exchange (1987) that a mandatory, binding alternative to a lawsuit violates the policyholder’s right to a jury trial. So although either side may demand an appraisal under the statutory wording, the result does not bind a party that did not request it, and the Division of Financial Regulation requires fire policies to say so (Bulletin DFR 2026-7). The Oregon special provisions endorsement used with homeowners policies goes further: an appraisal takes place only if both parties agree to it and to be bound by the result.

Insurer’s options, abandonment and payment (ORS 742.234 to 742.242)

• Insurer’s options: the insurer may take all or part of the property at the agreed or appraised value, and may also repair, rebuild or replace it with property of like kind and quality within a reasonable time, on giving notice of its intention to do so within 30 days after receiving the proof of loss (ORS 742.234)
• No abandonment: the insured may not abandon property to the insurer (ORS 742.236)
• When loss is payable: 60 days after the insurer receives the proof of loss and the amount is settled, either by written agreement or by an appraisal award filed with the insurer (ORS 742.238)
• Suit on the policy: must be started within 24 months after the inception of the loss, and only after the insured has met the policy’s requirements (ORS 742.240)
• Subrogation: the insurer may require the insured to assign all rights of recovery against anyone else for the loss, to the extent the insurer has paid (ORS 742.242)

Separately, Oregon law requires that when insured property is totally destroyed and the loss is less than the amount of insurance, the insurer returns the premium paid for the insurance above the loss, at the same time as the loss payment (ORS 742.058).

Sidenote

Know this...

Under the standard fire policy, the insured has 90 days to file a proof of loss, counted from receiving the insurer’s forms; the insurer has 30 days after the proof of loss to say it will repair or replace; and the loss is payable 60 days after the proof of loss is received and the amount is settled. A suit must be brought within 24 months after the loss begins.

Special provisions — Oregon

An insurer that writes a national dwelling or homeowners form in Oregon must conform it to Oregon law, usually by attaching an Oregon amendatory endorsement. You may see it called Special provisions — Oregon; ISO’s versions are HO 01 36 for homeowners policies and DP 01 36 for dwelling policies. An insurer that writes its own forms attaches its own Oregon endorsement instead. The Oregon rules behind it include:

Policy provision	Oregon rule
Concealment or fraud	Statements are representations, not warranties; an application error counts only if the application was attached to the policy, and the insurer must show the statement was material and relied on (ORS 742.013, 742.208)
Proof of loss	Due within 90 days after the insured receives the insurer’s proof of loss forms, notwithstanding a more restrictive policy requirement (ORS 742.053(2)). The national homeowners form allows 60 days after the insurer’s request; the Oregon endorsement makes it 90 days
Domestic partner	A domestic partner recognized under Oregon law who lives in the named insured’s household is included in “you” and “your”, the same as a resident spouse, including when a named insured dies. Any Oregon property policy that covers a spouse must recognize a domestic partner (ORS 106.340)
Appraisal	The result binds only a party that requested or agreed to the appraisal; the homeowners endorsement requires both parties to agree (Bulletin DFR 2026-7)
Innocent insureds	A personal lines policy may not deny coverage to an innocent insured for a covered loss caused by another insured’s act or omission (OAR 836-080-0905)
Fire	Oregon is a standard fire state: a fire is a fire. Oregon will not approve separate definitions, deductibles, restrictions or exclusions for wildfire (ORS 742.202, 742.204)
Suit against the insurer	Must be started within 24 months after the inception of the loss (ORS 742.240)
Cancellation and nonrenewal	Notice periods and permitted reasons for cancelling a fire policy (ORS 742.224) or a homeowners policy (ORS 746.687), and limits on using prior claims and inquiries (ORS 746.686), covered in the chapter Oregon Cancellation and Nonrenewal Laws
Total loss of contents in a major disaster	For a total loss of a home’s contents in a declared major disaster, once the policyholder attests in writing that the home was furnished and that the loss was directly related to the declared emergency, the insurer must offer at least 70 percent of the contents coverage without requiring a written inventory, tell the insured that accepting does not reduce the policy’s benefits and that a complete inventory may bring more, and explain how it figures any depreciation. It must pay covered debris removal within 60 days after receiving the invoice or receipt (or within a reasonable time if a government agency handles the debris) and covered trees, shrubs and landscaping within 30 days after receiving documentation. If the insured’s inventory exceeds the offer, the insurer must ask for any more information within 30 days and pay the undisputed items within 30 days of receiving it (ORS 742.053(3); OAR 836-080-0245)

Homeowners replacement cost and rebuilding (ORS 742.270 to 742.278)

Oregon adds rules for homeowner insurance, which Oregon defines as property and casualty coverage for the risks of owning or occupying a dwelling, not for an owner’s interest in rental property or commercial exposures (ORS 746.600).

Time to rebuild (ORS 742.270). When a homeowners policy requires the insured to repair, rebuild or replace the property before collecting full replacement cost, the insurer must, subject to the policy’s limits, allow the insured to do so:

• In not fewer than 12 months after the insurer’s initial payment toward the cash value of the property
• In not fewer than 24 months after the insurer’s initial payment toward the cash value of the primary dwelling, when the loss occurred in a location under a state of emergency declared under ORS 401.165 and is directly related to that emergency, or is directly related to a fire that was the subject of an order under the Emergency Conflagration Act (ORS 476.510 to 476.610)

For a primary dwelling loss in a location under a declared state of emergency and directly related to it, the insurer must also provide additional living expenses for 24 months after the date of the loss, subject to the policy’s limits for additional living expenses.

If the insured, acting in good faith and with reasonable diligence, is delayed by circumstances beyond the insured’s control (such as permit delays, or a lack of materials or contractors), the insurer must add time in increments of six months: up to a total of 24 months for the 12-month period, and up to a total of 36 months for the 24-month primary dwelling period and the 24-month additional living expense period.

Rebuilding somewhere else. If an insured structure is a total loss and the policy otherwise covers replacement cost or building code upgrade cost, the policy may not limit or deny that payment, including any extended replacement cost, because the insured decides to rebuild in a new location or to buy an existing structure in a new location. The insurer still pays no more than it would cost to rebuild at the original location.

Declared emergencies (ORS 742.273). For a loss directly related to a declared state of emergency, if the dwelling limit is not enough to repair or replace the primary dwelling, the insurer must combine the dwelling limit with the limit for other covered structures, up to the amount needed.

Updated rebuild estimates (ORS 742.276). Every other year, when it offers to renew a homeowners policy, the insurer must give the insured an opportunity to get a new estimate of the cost to rebuild or replace the covered property, if the insured provides the information needed for the estimate.

Wildfire risk maps (ORS 742.278). An insurer may not use a wildfire risk map published by a state agency as a basis for cancelling or declining to renew a homeowners policy, or for increasing its premium.

Permitted incidental occupancies — residence premises — Oregon

A homeowners policy is written for a residence, not a business. Oregon law reflects that: the homeowner insurance Oregon defines is coverage for the risks of owning or occupying a dwelling, and it is not intended to cover commercial exposures (ORS 746.600). Apart from the child care rule in ORS 742.260, covered below, no Oregon statute addresses business use of a home under a homeowners policy.

So in Oregon, what a homeowners policy covers for a business on the residence premises is set by the policy form, not by statute. The standard form gives business property only a small special limit and excludes business liability; the permitted incidental occupancies endorsement adds coverage for an office, school or studio on the residence premises, as described in the chapter Endorsements and Scheduled Property. Oregon uses its own version of that endorsement, HO 05 42 (Permitted Incidental Occupancies — Residence Premises — Oregon).

The Oregon special provisions endorsement also changes the business property limits. The $2,500 limit on business property at the residence premises and the $1,500 limit away from it do not apply to property used for a home day care business: that property is excluded unless the Oregon home day care endorsement is attached.

Home day care — Oregon (ORS 742.260)

Oregon has a specific rule for a home where child care is provided.

No cancellation solely for operating child care. An insurer offering homeowner or renter liability or fire insurance may not cancel, refuse to issue or refuse to renew a policy on a private home solely because the policyholder operates a child care facility, if the policyholder is registered or certified by the state to provide child care (ORS 742.260(1)). A child care facility includes a registered or certified family child care home (ORS 329A.250).

Child care losses need separate coverage. A homeowner or renter liability or fire policy may not cover losses arising out of child care provided by a registered or certified child care facility. That coverage may be provided only by a separate policy or an endorsement for which a premium is charged and paid (ORS 742.260(2)).

How the homeowners policy carries this out. The Oregon special provisions endorsement excludes business property used primarily for a home day care business unless the Oregon home day care coverage endorsement (HO 05 97) is attached, and ISO’s HO 05 96 states that the policy gives no liability coverage and only limited property coverage for a home day care business. The coverage the statute calls for comes from that paid endorsement or from a separate policy.

Sidenote

Know this...

Under the statute, the protection against cancellation applies only to a registered or certified provider, and only when child care is the sole reason. The Oregon special provisions endorsement goes further: the insurer agrees not to cancel or nonrenew solely because any home day care business operates on the residence premises. An insurer may still cancel or nonrenew for another permitted reason. And the provider’s homeowners or renters policy itself never covers the child care: that takes a separate policy or a paid endorsement.

Lesson summary

• A fire policy on Oregon property must contain the Oregon standard fire policy provisions (ORS 742.202). A dwelling or homeowners policy may be worded differently only if its fire coverage is at least their substantial equivalent (ORS 742.204).
• The standard fire policy covers fire, lightning and removal, at actual cash value, with no allowance for ordinance or law. Other perils are added by indorsement. Theft, war, civil authority orders (except destruction to stop a fire from spreading) and the insured’s neglect are not covered.
• Coverage is suspended while the hazard is increased by any means within the insured’s control or knowledge, and while a described building is vacant or unoccupied beyond 60 consecutive days; explosion or riot losses are not covered unless fire follows, and then only the fire loss.
• Without fraud, statements are representations, not warranties; willfully concealing or misrepresenting a material fact, or fraud or false swearing, voids the policy (ORS 742.208).
• Proof of loss is due within 90 days after the insured receives the forms; the insurer elects to repair within 30 days of the proof; the loss is payable 60 days after the proof and settlement of the amount; suit must start within 24 months of the loss.
• Appraisal: each side names an appraiser within 20 days; a judge names the umpire if the appraisers cannot agree within 15 days; an award by any two sets the loss, but binds only a party that requested or agreed to the appraisal (Bulletin DFR 2026-7).
• A mortgagee’s interest may be cancelled on 10 days’ written notice; if the insured fails to file a proof of loss, the mortgagee must file one within 60 days after notice.
• Homeowners: when the policy requires rebuilding to collect full replacement cost, the insured has at least 12 months after the insurer’s initial cash-value payment (24 for a primary dwelling loss tied to a declared emergency or an Emergency Conflagration Act fire), extendable in six-month steps for good-faith delays; and a policy that covers replacement cost may not limit or deny it because the insured rebuilds or buys elsewhere after a total loss. A state wildfire risk map may not be used to cancel, nonrenew or raise a premium.
• Child care: an insurer may not cancel or refuse a homeowner or renter policy solely because a registered or certified provider operates child care in the home, and the policy itself may not cover child care losses; that takes a separate policy or paid endorsement (ORS 742.260). The Oregon homeowners endorsement extends the no-cancellation promise to any home day care business, and excludes day care business property unless HO 05 97 is attached.