ORS Chapter 742 — Insurance Policies

ORS 742.270. Repair, rebuilding or replacement of property under homeowner insurance policy; requirements for insurer; prohibited policy provisions. (1) As used in this section: (a) Homeowner insurance has the meaning given that term in ORS 746.600. (b) Property means structures and dwellings, and the contents of structures and dwellings, that are covered by a policy of homeowner insurance. (2) If a policy of homeowner insurance requires an insured to repair, rebuild or replace damaged or lost property in order to collect the full replacement cost for the property, the insurer shall, subject to the policy limits: (a) Allow an insured to repair, rebuild or replace damaged or lost property: (A) In not fewer than 12 months after the date of the insurers initial payment toward the cash value of the property that was damaged or lost; or (B) In not fewer than 24 months after the date of the insurers initial payment toward the cash value of the primary dwelling of the insured that was damaged or lost, if the damage or loss: (i) Occurred in a location that was subject to a declaration of a state of emergency under ORS 401.165 and the damage or loss is directly related to the emergency that was the subject of the declaration; or (ii) Was directly related to a fire that was the subject of an order under ORS 476.510 to 476.610. (b) Provide additional living expenses to an insured, subject to the policy limits for additional living expenses, for a period of 24 months after the date of the damage or loss to the insureds primary dwelling if the damage or loss occurred in a location that was subject to a declaration of a state of emergency under ORS 401.165 and the damage or loss is directly related to the emergency that was the subject of the declaration. (c) Add time to each of the periods described in paragraphs (a) and (b) of this subsection in increments of six months for a total period of not more than 24 months under paragraph (a)(A) of this subsection and a total period of not more than 36 months under paragraphs (a)(B) and (b) of this subsection if an insured, acting in good faith and with reasonable diligence, encounters unavoidable delays in obtaining a construction permit, lacks necessary construction materials, lacks available contractors to perform necessary work or encounters other circumstances beyond the insureds control. (3) Subsection (2) of this section does not prohibit an insurer from allowing an insured additional time to collect the full replacement cost for lost or damaged property or for additional living expenses. (4) A policy of homeowner insurance may not limit or deny a payment of the replacement cost or building code upgrade cost, including a payment of any extended replacement cost available under the policy coverage, for an insureds structure that was a total loss on the basis that the insured decided to rebuild in a new location or to purchase an existing structure in a new location if the policy otherwise covers the replacement cost or building code upgrade cost, except that the measure of indemnity may not exceed the replacement cost, building code upgrade cost or extended replacement cost for repairing, rebuilding or replacing the structure at the original location of the loss.