Wisconsin Homeowners Insurance Guide

Being a homeowner in Wisconsin brings with it a special set of challenges that are not to be found in other parts of the country. As an area that is subject to flooding, blizzards, significant heat and humidity, ice, and even seismic activity on occasion, the homeowner in Wisconsin has to be prepared for just about every eventuality when it comes to insuring their home.

Homeowner’s insurance is insurance for your home in case you need to repair damage done to it or rebuild it if it is destroyed. Not having enough homeowner’s insurance means that your insurance company will probably only pay for a small part of the cost of replacing items or repairing your home. Homeowner’s insurance comes in three basic levels:

• Replacement cost: Replacement cost insurance pays for any costs of replacing damaged property and does not take into account depreciation in value. There is a limit to the maximum dollar amount that you may receive with this insurance type, however.
• Guaranteed Replacement Cost: This is similar to replacement cost, but it does not have a limit to it in most cases, meaning that if there is a sudden increase in the cost of building materials you won’t be left unable to complete repairs or the replacement of your home due to increased costs that exceed your insurance maximums. This is the most expensive type of homeowner’s insurance and may not be available in your area.
• Actual Cash Value: The most common type of homeowner’s insurance policy, this insurance will take into account the current value of any item that is lost or stolen or destroyed in your home and offer you a payment or settlement that is equal to that current depreciated value regardless of whether or not it is sufficient to repair or repurchase the item at current market levels.

It is also important to keep in mind that standard homeowner’s insurance policies do not provide protection for Wisconsin homeowners in the eventuality of damage due to natural flooding, either via rainstorm or if you live along the banks of a river or either of the Great Lakes that border the state. Flood damage is covered only if you add another special type of insurance to your policy that specifies that type of coverage. Normal policies do provide coverage if the flood is from an unnatural source such as a burst pipeline or faulty appliance within the home.