SISTERS, Ore. — A major insurance company has canceled hundreds of home policies in the Sisters area, forcing homeowners to find new insurance that costs twice as much.
In the past few months, Farmers Insurance cancelled policies for about 200 homes in the Camp Polk area, a few miles north of Sisters. Lacking an official statement from Farmers Insurance, all Central Oregon Daily News has to go on is what the company told its customers when it cancelled their policies.
“Our recent review of your coverage reveals your policy no longer meets our eligibility requirements. Unfortunately, this means we can’t renew your policy,” according to the cancellation letter sent to Karen Whisler.
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For 15 years prior to receiving that notice, Whisler insured her home with Farmers.
Whisler and several neighbors who received identical cancellations, began searching for new insurance for their homes that are identified by insurance companies as being in area of high fire risk.
“It’s terrifying because if you can’t find insurance or you can’t afford your insurance. You know your mortgage company requires you to have insurance, so I started to think I could lose my house,” Whisler said.
Whisler and her neighbors did find homeowners insurance with State Farm through its Sherwood, Oregon office, but it is costing them quite a bit more.
“My insurance policy went for $5,000 per year with a $500 deductible to $10,000 per year with a $10,000 deductible. Nothing I can do about that,” Whisler said.
When someone inquires about home insurance at the Country Financial Services office in Sisters, the first thing agent Linda Alldredge does is locate the property on a map.
“Drop a Google pin literally on the roof of the house and then scope around to see how much clearing has been done to see how big a project it would be to get it through underwriting,” Alldredge said.
She said her business has changed due to insurance industry awareness of fire risk in the Sisters area. She’s literally coaching homeowners how to reduce fire danger.
“Goodness, for sure. But I’m also coaching on what the underwriters are going to look at because 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. It’s all of that,” she said.
Alldredge said Country Financial is committed to its existing customers, but acknowledges their insurance premiums are rising as well.
For people who are thinking of moving to the Sisters area and buying a home, Alldredge advises allocating additional time in the transaction schedule. That’s to allow for any fuels reduction and home hardening projects that may be required before insurance companies will consider issuing new policies.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.