If you own a home in Salem or anywhere in the Willamette Valley, you’ve probably noticed your homeowners insurance bill climbing. You’re not imagining it. Oregon premiums have jumped more than 27% since 2020, and some homeowners in wildfire-prone parts of the state have seen their rates triple or their policies cancelled altogether. But a new Oregon wildfire insurance discount program could change the math — if you know what steps to take.
But there’s a bill moving through the Oregon legislature right now that could change things — and it rewards homeowners who take action to protect their property.
Senate Bill 1540, sponsored by Senator Jeff Golden of Ashland, would require insurance companies to offer premium discounts or incentives to homeowners who take documented steps to reduce wildfire risk on their property. It passed the Senate Natural Resources Committee with a unanimous bipartisan vote on February 13, 2026, and is now headed to the Senate Rules Committee.
Here’s what you need to know — and what you can start doing today, whether the bill passes or not.
What SB 1540 Would Actually Do
The bill has two main pieces.
First, it would require insurance companies to file their wildfire risk-scoring models with the Oregon Department of Consumer and Business Services. Right now, most insurers use proprietary computer models to assess how risky your home is, but they aren’t required to show you how those scores work. SB 1540 would bring transparency to that process while still protecting insurers’ intellectual property.
Second — and this is the part that matters to your wallet — if an insurer doesn’t already factor your wildfire mitigation efforts into their pricing model, the bill would require them to offer you a discount or incentive when you can prove you’ve taken specific steps to protect your property.
The bill is modeled after Colorado’s HB 1182, which passed in 2025 and took effect in January 2026. Colorado’s insurance commissioner has already said they’re seeing companies do a better job taking mitigation into account since the law went into effect. If Oregon follows the same path, a formal Oregon wildfire insurance discount could become standard across the industry.
Why This Matters for Salem Homeowners
You might be thinking, “I live in Salem, not Bend or Ashland. Wildfire doesn’t affect me.” But that’s not how insurers see it.
Oregon’s 2020 Labor Day fires destroyed more than 4,000 homes and became the state’s most expensive natural disaster in history. Since then, insurers across the state have recalibrated their models. Even homeowners in the Willamette Valley — which didn’t see the worst of the fires — have felt the impact through rising premiums. (For a full breakdown of how this affects your policy, see our Homeowners Insurance in Salem, Oregon: A Complete Guide.)
Between 2018 and 2023, the average Oregon homeowners insurance premium jumped from $582 to $886 annually. Non-renewal rates more than doubled in that same period, from 3.5 per 1,000 policies in 2020 to 7.8 per 1,000 in 2023. And while the Northwest Insurance Council says the market is stabilizing, Oregon’s insurance commissioner has been clear that premiums aren’t going back to 2020 levels anytime soon.
SB 1540 gives homeowners a tool to push back — not by fighting with your insurer, but by proving your home qualifies for an Oregon wildfire insurance discount through documented risk reduction.
How to Qualify for an Oregon Wildfire Insurance Discount
Oregon’s State Fire Marshal signed a memorandum of understanding with the Insurance Institute for Business and Home Safety (IBHS) in May 2025, launching the Wildfire Prepared Home certification program in Oregon. This program gives homeowners a clear set of science-based actions they can take to earn a formal certification — which insurers can then use to justify lower rates.
The program focuses on three areas: your roof, your home’s structural features, and the space around your property.
Defensible Space (the land around your home)
The concept is simple — create buffer zones between your home and anything that could carry fire to it. There are three zones to think about.
Zone 0 is the five feet immediately around your house. This is the most critical area. Replace bark mulch with gravel or pavers. Clear dead leaves and debris from gutters, under decks, and along foundations. Move firewood piles, propane tanks, and combustible patio furniture away from the house.
Zone 1 extends from 5 to 30 feet out. Keep grass mowed short, trim tree branches at least six feet off the ground, and create spacing between shrubs and trees so fire can’t jump from one to the next.
Zone 2 covers 30 to 100 feet from your home. Thin trees, remove dead vegetation, and keep brush cleared. The goal is to slow a fire down and give firefighters room to work.
Home Hardening (your home’s structure)
Your roof is the single most vulnerable part of your house during a wildfire. Make sure it’s a Class A fire-rated material — asphalt shingles, metal, tile, or concrete all qualify. Wood shake roofs do not.
Install ember-resistant vents with fine metal mesh screens. During a wildfire, wind-blown embers can travel over a mile and enter your home through attic and crawl space vents. This is one of the most cost-effective upgrades you can make.
Multi-pane windows resist heat and breakage better than single-pane glass. If a full window replacement isn’t in the budget right now, exterior shutters that can be closed during fire season are another option.
Clear all combustible materials from underneath decks and porches. If you’re planning to rebuild or renovate a deck, consider non-combustible decking material.
What You Can Do Right Now
You don’t need to wait for SB 1540 to pass to start protecting your home and potentially lowering your insurance costs.
Step 1: Start with your five-foot zone. Walk around your house this weekend. Clear leaves and debris from gutters, move firewood and propane away from the house, and replace bark mulch with gravel within five feet of your foundation. This is free and takes an afternoon.
Step 2: Check your roof and vents. If you have a wood shake roof, talk to a contractor about replacement options. If you have standard attic vents without fine mesh screens, an ember-resistant vent retrofit is relatively inexpensive.
Step 3: Look into the Wildfire Prepared Home program. The IBHS certification gives you a documented, third-party verification that your home meets wildfire mitigation standards. Certifications are valid for three years and require annual reinspection. Visit ibhs.org for program details.
Step 4: Talk to your insurance agent. This one’s important. Many homeowners don’t know that their insurer may already offer an Oregon wildfire insurance discount or credit for mitigation work — they just haven’t asked. Under current Oregon law (ORS 742.277), if your insurer cancels, non-renews, or raises your rate due to wildfire risk, they’re required to tell you what property-specific factors drove that decision and what you can do about it. If you’ve done mitigation work since your last renewal, ask for an updated risk score.
Step 5: Stay informed on SB 1540. Oregon’s 2026 short session runs through March 8. The bill has bipartisan support and momentum, but the timeline is compressed. If it passes, the specifics of how discounts will work — and how much you could save — will matter. We’ll keep you updated right here on the blog.
Frequently Asked Questions
How much could I save on my insurance with wildfire mitigation?
It depends on your insurer, your current risk score, and what work you do. Colorado’s early data suggests savings ranging from modest annual reductions to more significant discounts for homeowners in high-risk zones who complete comprehensive mitigation. Oregon’s program is still taking shape, but the IBHS certification is designed to give insurers confidence that your home is genuinely lower risk.
Does SB 1540 apply to all Oregon homeowners or just those in wildfire zones?
The bill applies statewide. Even if your home isn’t in a designated high-risk wildfire area, the transparency requirements and mitigation incentive provisions would apply to your insurer.
Is the Wildfire Prepared Home certification expensive?
The IBHS program does involve a fee for the certification and inspection process. However, the potential premium savings over three years — plus the increased safety of your home — can offset that cost. Contact IBHS directly for current pricing.
What if my insurer already factors mitigation into my rates?
If your insurer already incorporates your wildfire mitigation efforts into their risk model, SB 1540 wouldn’t require them to offer an additional discount on top of that. The bill is specifically aimed at closing the gap where insurers aren’t rewarding homeowners for the work they’ve done.
I rent my home. Does any of this apply to me?
Wildfire mitigation primarily applies to property owners. However, if you’re a renter in an area with wildfire risk, renters insurance can protect your personal belongings. Talk to your agent about what coverage makes sense for your situation.
What This Means for You
Oregon’s insurance market is changing. Premiums are up, non-renewals are climbing, and the old approach of just paying whatever your insurer charges isn’t sustainable. An Oregon wildfire insurance discount through SB 1540 could make a meaningful difference for homeowners who invest in protection. SB 1540 represents a shift toward rewarding homeowners who invest in making their properties safer — and the Wildfire Prepared Home program gives you a clear path to get there.
Whether you’re in a high-risk area near the foothills or right here in downtown Salem, taking steps to reduce your home’s wildfire vulnerability is smart insurance planning. And if SB 1540 passes, you’ll already be ahead of the curve.
If you have questions about how wildfire risk is affecting your homeowners insurance — or what you can do to manage your costs — give our office a call at (503) 390-5343 or stop by at 4660 Portland Rd NE, Suite 102, in Salem. We’re here to help you make sense of it.
The information provided in this blog is for general educational purposes only and should not be considered as specific insurance advice. Coverage options, availability, and pricing vary by individual circumstances. For personalized guidance, contact our office at (503) 390-5343 or visit sammonsagency.com. Christian Sammons is a State Farm Insurance Agent — State Farm, Bloomington, IL.
Oregon insurance laws and regulations are subject to change. This information was current as of the publication date. Always verify current requirements with the Oregon Division of Financial Regulation or your insurance agent.
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