When you buy a home in Oregon, you’ll need to insure it with homeowner’s insurance. But what exactly is this type of policy, and do you really need it? This article will answer that question.
First-time home buyers in Oregon tend to have a lot of questions about homeowner’s insurance. Today, we’ll address one of the most common questions on the subject: Is home insurance required in the state of Oregon?
The short answer is this:
If you’re going to use a mortgage loan to buy a home in Oregon, then homeowner’s insurance will be required. Banks and lenders almost always require the borrower to have a home insurance policy in place prior to closing. That’s because they might have a large stake in the property.
If you plan to pay cash when buying a home in Oregon, there’s nothing that requires you to have homeowner’s insurance coverage in place. But it’s still a wise investment, especially when you consider the relatively low annual cost of these policies.
Related: How does earnest money work?
Home Insurance Requirements in Oregon
Like most states, Oregon does not have any insurance-related requirements for home buyers. They do not require you to have a homeowners policy. This is a big difference from auto insurance, which is required by almost every state in the country.
But if you’re planning to use a mortgage loan to help finance your home purchase, you’ll need a homeowners insurance policy to cover the property against major damage or destruction.
- So no, the state of Oregon does not require homeowners to have a home insurance policy in place like they do for auto-related policies.
- But you’ll need at least basic coverage if you’re going to use a mortgage loan to finance your purchase. This is a common requirement across the mortgage industry.
Affordable Protection for a Valuable Asset
When you consider the cost of a typical home insurance policy in Oregon — and what you get for that cost — you’ll probably agree that it’s a wise investment.
On average, these policies verage just over $1,200 per year in Oregon. (The exact cost can vary due to such factors as the home value, the location, and the amount of coverage you choose.) Those annual premiums would come to around $100 per month, a relatively small price to pay when you consider the value of the home itself.
The coverage you receive often goes beyond the house itself. A typical homeowner’s policy in Oregon will cover not just the property itself, but also attached garages, detached structures on the property, and personal property. Home insurance can provide coverage against a wide variety of losses and damages.
- The state of Oregon does not require homeowners to have a home insurance policy.
- But banks and lenders who issue mortgage loans typically require it.
- Depending on the value of the property and the type of coverage you choose, you might pay somewhere around $1,200 per year. Those are typical premiums for Oregon, as of 2022. But the cost could fall outside of that range as well.
The State of Oregon’s Division of Financial Regulation sums it up nicely on their website, with this message to consumers:
“A home is usually the largest purchase you will make. Protecting this major investment can be important to your family’s financial future. If you have a mortgage, your lender will require you to have homeowner insurance. If you do not have a mortgage, it is a good idea to protect your investment.”
Have Questions About Mortgages in Oregon?
If you have any questions about mortgages in Oregon, Sammamish Mortgage has the answers. We are a local, family-owned company based in Bellevue, Washington and provide mortgage programs throughout the entire state, as well as Colorado, Idaho, and Oregon since 1992. Please contact us if you have mortgage-related questions.