15 Trial Lawyer • Spring 2023 foundation must be set before the walls can be put up. The walls must be put up before the roof can be put on and the roof has to be on before finish work can take place. At every stage of the project, Steve experienced delays, and shortages of supplies and materials compounding the delays on the project. Eventually, Steve began to run into issues with the insurance carrier, because the carrier had limits on his time to replace his property. Steve’s carrier had a common clause in his policy stating that in order to recover the full replacement value for the loss, Steve had to complete repairs within one year of the date of the loss. Fortunately for Steve, OTLA’s response was not limited to offering direct advice to wildfire victims. In the aftermath of the fires, the OTLA legislative team assisted Sen. Pam Marsh in crafting and promoting House Bill 3272, which made important changes to Oregon Law regarding how and when Oregonians could rebuild their homes. In pertinent part, the bill extended the time allowed for replacement. Previously under state law, insures were allowed to set a one-year limit on replacement, meaning if the insured did not repair their property within a year of the loss, the insurer could deny further payment on the claim. Previously, claims like Steve’s would have forced him to either confirm an extension with the carrier or file a preemptive lawsuit against the carrier in order to argue why the timeframe should not apply. HB 3272 changed this time limit and allows that if property is lost during a declared state of emergency, the insured has a minimum of two years to replace the property from the date of the first payment by the insurer, with a one year extension upon a showing from the insured they have been unable to replace for reasons beyond their control. HB 3272 also codified a widespread industry practice wherein the insured can replace their property by purchasing property elsewhere and use the insurance funds to make that replacement purchase. Steve was able to complete the repairs on his property within the two year limit and he was fully compensated by his insurance carrier. Conclusion The fires of 2020 were a historic event, but one we are likely to see again in the near future. Thanks to the work of OTLA both directly and in the Legislature, Oregonians have better protection and access to support when these devastating fires hit again. Clinton Tapper focuses on insurance carrier disputes, as well as other complex litigation at The Tapper Law Firm, 474 Willamette St., Ste. 306, Eugene, OR 97401. Tapper is a contributor to OTLA Guardians at the Sustaining Member level. He can be reached at clinton@tapperlaw.com or 458-201-7828.
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