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Buying Homeowners Insurance in Wisconsin
Buying homeowner’s insurance in Wisconsin can be an easy or really difficult process. Ideally, you want to work with an agent who will take the time to know you and your family, and have access to the “right” insurance carrier. The “right” carrier means different things to different people — but for this article, that means the price is reasonable, the coverage is complete for your situation, and the service during a claim lowers (not raises) your stress level.
Why it’s worth working with an agent
The process is simple to start — most people either contact an insurance agent or buy a policy directly from an insurance company. It sounds self-serving, but it’s still true: if you don’t have a dedicated agent, you’re acting as your own agent. Not just in the buying process (which is always relatively easy), but during the claims process too.
If you’re an attorney, you may know what your rights are and whether the carrier is trying to play games with you or pay less than they’re legally liable for. For most others — including people who “think” they know — there’s a pretty wide gap between the knowledge needed and the knowledge actually possessed. If buying insurance were like buying eggs, insurance agents wouldn’t exist. The reason computers haven’t taken over is that each situation is unique. Home insurance policies are somewhat standardized, but coverage can vary widely.
Compare carriers before you buy
Before buying a policy, research different insurance companies and compare rates and coverage options. As an independent agency that represents many insurance companies, we’re biased — we believe obtaining insurance through an independent agency (and of course, through us) is almost always your best option. In fairness, there’s no reason not to call some of the big-advertising insurance companies too and see what they have to offer.
You’ll quickly figure out how those expensive football and sports ads are paid for. At that point you can decide whether you enjoy just watching the ads or paying for them. That’s not to say independent agencies and their carriers don’t advertise — we do — but nowhere near the same degree.
Match your coverage to what you actually own
Assess your insurance needs with your agent and make sure you’re getting the right amount of coverage for your home and all the possessions you and your family own. If you have a lot of guns or firearms, art, or jewelry, make sure your agent is aware (they should be asking about it) so those items can be scheduled if appropriate. Some people don’t want to disclose how many firearms they have — the insurance company doesn’t really care (well, some do; none of the companies we work with do). The information is only used to make sure the value and premium are calculated correctly.
It’s also a good idea to review your policy regularly with your agent to ensure it still meets your needs. Any big life change should trigger a review of your homeowner’s insurance (and your car insurance too). Even without big changes, discussing coverage at least every other year is a great idea.
Consider the value of your home and possessions, as well as any potential risks or hazards specific to your area — natural disasters, crime, and so on. This helps determine how much coverage you need and what type of policy is best for you. It may seem crazy, but earthquakes are possible in Wisconsin — though usually only high-rise apartments get earthquake coverage.
Understand the coverage before a claim happens
It’s important to understand the coverage and limits of the policy, as well as the process of making a claim. A 1 Reason agent is happy to explain the claim process in detail and walk you through what to expect. Ideally, your coverage is planned in advance so that when a claim happens, you’re covered the way you expect to be. That includes things like water backup — coverage that doesn’t generally include “enough” without adding additional coverage if you have a basement that’s partially (or more) finished as living space. Water backup includes city sewer water or septic backing up into your home via the drain.
Homeowner’s Liability Coverage — The Part People Overlook
Buying homeowners insurance is an important step in protecting your property and the items you own. But that discussion is incomplete without talking about the liability coverage that comes with a homeowner’s policy.
Homeowners liability coverage helps protect you from financial loss if someone is injured on your property, or if you’re found liable for damages caused by your actions. It typically includes two types of protection: bodily injury liability and property damage liability.
Bodily injury liability
Bodily injury liability is usually thought of in the context of covering medical expenses and other damages if someone is injured on your property. However, this coverage extends beyond your home. For example: you’re playing tennis, you accidentally hit a ball over to the next court, it strikes someone in the face, they fall and hit their head on the ground. That’s covered.
Property damage liability
Property damage liability covers damage to other people’s property caused by you or your family members, including away from your home. There are some limits to this coverage, so it’s important to discuss liability limits with a 1 Reason Insurance agent so you’re fully informed and fully covered as expected.
Know the exclusions
Make sure you understand the exclusions and limitations of your policy. Some policies won’t cover injuries caused by certain activities — swimming pools or trampolines, for example, if they’re excluded. Some insurance carriers never want to see trampolines; some charge extra for them; some allow you to exclude coverage on the trampoline; and some don’t care at all. By talking to an agent, you can be sure you’re covered — or can avoid the extra premium — as you see fit.
Umbrella policies for extra protection
In addition to standard liability coverage, some insurance companies offer additional liability options such as personal umbrella liability insurance. An umbrella policy provides an extra layer of protection above what your homeowner’s and auto liability cover. It’s especially useful for people with a high net worth or those who own additional properties. Umbrella policies may also cover exposures your home and auto don’t cover, though that’s beyond the scope of this article.
What homeowner’s liability usually doesn’t cover: business activities
One area that trips people up is what homeowner’s liability doesn’t cover. Generally — sometimes an endorsement will add coverage — business activities are NOT covered. If you own a business (either at your home or elsewhere) and you get sued as a result of the business operation, you won’t have liability coverage under your homeowner’s policy.
A real-world example we’ve seen: an insured made written comments about a business, and the business sued the homeowner for libel. Because the statements were made in reaction to what the other business did to the homeowner’s business, the written statement was considered part of a business operation and not personal alleged libel. To make matters worse, the lawsuit took place in Canada — the location of the other company — which doesn’t have the same First Amendment protections regarding free speech as America does. The homeowner’s insurance denied coverage and the homeowner was forced to defend a Canadian lawsuit with their own money. If the homeowner had commercial liability insurance, that generally would have covered the claim.
The key takeaway: the liability protection that comes with homeowner’s insurance is great, but it comes with important limits you should discuss with an agent so you’re making informed decisions.
Questions before your agent calls?
Reach us at 715-318-9969 or service@1reason.com. Our sister company, 1 Reason Insurance, will contact you within 24 hours with quotes.
