If you opened your homeowners or auto insurance renewal notice this spring and found a rate increase with no explanation, you now have a legal right to demand one. Oregon's House Bill 2563 took effect April 1, 2026, giving every personal lines policyholder in the state the power to request a written breakdown of exactly why their premium went up — and insurers are legally required to respond. At Prineville Insurance, we want every Central Oregon family to know their rights and how to use them.

What Oregon's New Insurance Law Actually Requires

Oregon's Permanent Administrative Order ID 2-2026 implements House Bill 2563 from the 2025 legislative session. The law applies to any insurer writing personal auto, homeowners, or dwelling policies in Oregon with combined written premium of $1,000,000 or more per year — which covers virtually every major carrier operating in the state.

When you submit a written request, your insurer must identify between one and four rating factors that significantly contributed to your premium increase. A factor qualifies as "significant" only if it accounts for more than 2% of your current policy premium and ranks among the top four cost drivers on a dollar basis. If no single factor clears that threshold, the insurer must still provide a personalized explanation covering all contributing factors.

The one exception: if your rate increase was caused entirely by changes you initiated — such as adding a vehicle, increasing coverage limits, or adding a driver — the insurer can simply state that. But if the increase came from the insurer's own rating decisions, they must explain it in writing.

What the Written Explanation Must Include

Oregon's regulation is specific about what a valid explanation looks like. Every written response from your insurer must contain:

How to Request Your Written Explanation — Step by Step

Oregon has kept the process simple for policyholders. Here is exactly what to do when you receive a renewal notice with a rate increase you don't understand:

What Factors Are Typically Driving Rate Increases in Central Oregon Right Now

Understanding the law is one thing — understanding why rates are rising is another. In Central Oregon in 2026, the most common factors cited in rate increase explanations include:

If your explanation cites wildfire risk reclassification as a primary factor, you may have more options than you think. Our wildfire insurance specialists work with carriers who use different risk models and may rate your property more favorably. We also help homeowners explore home hardening and defensible space improvements that can directly lower your wildfire risk score.

What to Do If Your Rate Increase Is Too High

Getting the written explanation is your right — but it's only the beginning. If the explanation reveals factors you can address, or if the increase simply makes your policy unaffordable, here are your options:

The New Insurer Reporting Requirement — What It Means for You

Beyond the individual explanation right, Oregon's new regulation also introduces a biennial reporting obligation starting April 30, 2028. Insurers must report to the Oregon Division of Financial Regulation, grouped by ZIP code and calendar year:

• The total number of renewal offers where premiums increased
• How many policyholders requested a written explanation
• The percentage increase on each of those policies

This data will give Oregon regulators — and eventually the public — a ZIP-code-level view of where rates are climbing fastest and how often consumers are pushing back. For Central Oregon communities like Prineville, Redmond, Sisters, and Bend, this transparency could become a powerful tool for holding carriers accountable to fair pricing.

Does This Law Apply to Commercial Insurance?

No. Oregon HB 2563 applies only to personal auto, homeowners, and dwelling policies. If you own a business and received a rate increase on your commercial insurance policy, this law does not require your insurer to provide a written explanation. However, as your independent agent, we can always review your commercial renewal and explain the factors driving any increase — and shop alternatives if the rate is uncompetitive.

For Central Oregon small business owners, contractors, and farmers, the best protection against unexpected commercial rate increases is working with an independent agent who monitors your coverage year-round. Our commercial insurance team proactively reviews renewals and reaches out when we see significant changes — you shouldn't have to ask.

Oregon's New Affordable Housing Insurance Assistance Program

The same regulatory package that created the rate explanation requirement also established the Affordable Housing Premium Assistance Program under Senate Bill 829 (2025). This program channels state funds to help affordable housing providers and shelter operators cover rising insurance costs.

Eligible applicants include nonprofits, public entities, and private organizations that own or operate affordable housing, shelters, or Project Turnkey sites. Payments are capped at 40% of total annual insurance premiums or $30,000 per entity, whichever is less. Applications are prioritized for entities where insurance costs exceed 20% of non-staff operating expenses or where operating reserves have fallen below three months.

If you operate a nonprofit organization or affordable housing property in Central Oregon, contact us to discuss whether this program applies to your situation and how we can help you document your insurance costs for the application.

Frequently Asked Questions

The Bottom Line for Central Oregon Policyholders

Oregon's new insurance transparency law is a genuine win for consumers. For the first time, you have a legal right to understand exactly why your homeowners or auto insurance premium increased — not just accept it. Use that right. Request the explanation, review it carefully, and if the increase doesn't make sense or isn't affordable, reach out to a local independent agent.

At Prineville Insurance, we've been helping Central Oregon families navigate the insurance market since 1935. Whether you received a rate increase notice, a non-renewal, or just want to make sure you're getting the best value for your coverage, we're here to help. As an independent insurance agency, we work for you — not for any single carrier — and we can compare options across dozens of companies to find the right fit for your home, your budget, and your risk profile.

If you're a homeowner in Prineville, Bend, Redmond, Sisters, Madras, or anywhere in Central Oregon and you've received a rate increase you don't understand, start by requesting the written explanation — and then give us a call. We'll help you make sense of it and find the best path forward.