The state of Oregon may lose its wildfire insurance coverage as rising premiums and deductibles could make the policy unaffordable.

SALEM — Oregon officials and forest landowners decided this week to renew the state’s wildfire insurance, despite costly changes to the policy.

Under this year’s plan, the state’s deductible will more than double from $20 million to $50 million. The cost increase followed two severe fire seasons, in which Oregon filed claims for the full amount of coverage offered under its insurance policy.

Rod Nichols, a spokesman for the Oregon Department of Forestry, wrote in an email Thursday that “the deal is officially on,” after state officials accepted the policy offered by Lloyd’s, the London insurance market.

On Monday, a committee of forest landowners voted unanimously to purchase the policy, according to a letter from the group to State Forester Doug Decker.

Oregon’s unique wildfire insurance policy covers the state’s firefighting costs once they exceed the deductible. This year, insurers said they would issue a policy with $25 million in coverage, which would kick in after the state spends at least $50 million on wildfire suppression. That $50 million, plus the $3.75 million premium, will now be built into the Oregon Department of Forestry budget.

Forestry officials had been getting anxious as the state headed into fire season and a fifth year of drought without the policy, and budget writers in the state Legislature also needed to know whether the state would buy the policy.

“Our budget is currently in the Legislature, so it’s always a race to the finish,” Nichols said Thursday.

The Capital Bureau is a collaboration between EO Media Group and Pamplin Media Group.