I remember when I first started my career as an independent property and casualty insurance agent in 2005, a typical homeowner policy sold for around $400 a year on a $200,000 house. Those same homes now, in 2026, sell for more than double that amount, but the premiums have risen nearly tenfold.

Most homes had just undergone a rigorous re-underwriting after a siding materials crisis a few years before, in the year 2000. Insurance companies issued new policies or revised old ones to include new language and exclusions to deal with defective materials and mold. This limited how much the insurer would have to pay for environment perils beyond what they could predict at the time.

By 2008, everyone who could afford to buy a home did so despite their credit score, as lenders had relaxed their underwriting standards. The demand for remodeled older homes and new construction soared, which drove home values and the cost of labor and materials up. Calculating replacement costs failed to keep up with rising values, and many homeowners found themselves woefully underinsured. When so many new homeowners defaulted on their loans soon after, little care was given to properties, and often, questionable claims were submitted.

This created an entire industry of contractors, especially roofers, who would insist on a complete tear-off and replacement for just a single damaged or curled shingle. Like the siding crisis that occurred at the turn of the century, insurers found themselves paying for things that were unforeseen in their premium calculations. Again, contract language changed to put limitations on parts of the structure, such as roofs, to limit their exposure. They applied higher deductibles, and many changed to a percentage-based deductible structure, limiting how much they would have to pay.

Part of the problem also included homeowner requirements set by government back mortgages, such as Freddie Mac and Fannie Mae. Those types of loans required homeowner policies that provided replacement cost coverage on the roof. This forced insurance companies to raise prices to cover a twenty-year-old, worn-out, moss-covered roof as though it had just been installed last week.

Since 2005, Oregon has experienced some of the worst fire seasons in its history. Entire towns have burned, whether started by nature or by man. My own mother lost her home in one of those conflagrations in Southern Oregon, burning up all the childhood memories I was supposed to share with my siblings when she passed. No amount of insurance can replace the meaning of those priceless objects, but the functionality of the home and its other contents. The trend seems to worsen each year. Insurers also look to the neighboring state to the south of Oregon and make decisions that affect us here based on what they experience there.

There are several zones in Oregon where insurers fear to even offer a policy at any price because of looming fire danger in those heavily wooded areas. The vast forests and vigorous lumber industry are part of what makes Oregon such an amazing place to live, but it comes with a cost. Fortunately, I have a few options to work with, although they may be quite expensive and may not include liability if you go with a state-funded program.

Also, those homeowners with government-backed mortgages might have a few more options, as just in the last week, those agencies revised the replacement cost requirements. This means insurance companies can offer lower-priced policies with roof exclusions or limitations to those borrowers. The downside is that if a claim occurs related to a roof, whether wear and tear, windstorm, or fire, the homeowner would have to pay the difference out of pocket after a deductible for the depreciated roof.

Another factor driving up homeowner insurance prices is the severity of what used to be small claims. If a dishwasher backed up and water spilled out, damaging the kitchen floor, the cost used to be around $5,000 for repairs. I’ve seen several in recent years well into five figures to cover materials and labor, as contractors, just like roofs, insist on a complete rebuild of the kitchen. To combat this trend, insurers are placing limitations and exclusions on certain items such as water and sewer backup and service line breakage. Some of these can be bought back, but at a significant cost.

The biggest surprise for homeowners who file a claim or two during the policy period is a non-renewal notice. Some homeowner insurers won’t even touch an account that has had a claim filed in the last three years. ‘What’s the point of having insurance if you can’t use it without being penalized?’ you may ask. If you find yourself in that situation, call me. I might have a solution depending on what type of claim it was and how many.

Not all homeowner policies are created equal. I encourage you to review your coverages and talk to someone like me to discuss in broad terms what each of them means. I might just find you a more affordable plan with better coverage than what you have now. Let me run a replacement cost analysis on your property to be sure you have adequate coverage and work with your lender to set up direct annual premium payments to the insurance company.