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. The real trick in finding the “right coverage” is more about understanding your risk tolerance within your budget.

While it’s not impossible to transfer all the risk, from a financial point of view, it’s rarely the right choice. The more risk you transfer, the more it cost in insurance premium, and akin to most if not all businesses, insurance companies are in business to make money by providing a desired service. For example, having a lower deductible may “feel” great when there is an an event that causes a claim, however, over the long-term, a lower deductible is a virtual certainty to cost much more than a higher deductible.

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 strongly believe obtaining insurance through an independent agency (and of course, through us) is almost always your best option. I’ll also add that when it’s clear we don’t have the best option and/or the facts and circumstances are such that we’re not a good fit, you can expect us to tell you that as well.

We have all sorts of carriers for home and auto insurance. Some names you’ll know right away, and some you’ve likely never heard of. Advertising is a materially massive expense for some insurance providers, and nearly zero for others. One thing is for certain, the ads are paid for through client premiums, and while some companies choose to have a large marketing budget, often the best option is to carefully review a carrier that offers a better value, which is one of the best reasons to have us shop for your coverage. 

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.

One exclusion that tends to surprise people is water backup coverage and flooding. Water backup is when the sewer flows the WRONG way, which can not only cause a massive amount of dollar damage, it can be the type of clean up work most people quickly decide they don’t want to do on their own. As you may imagine, the cost of hiring sewer cleanup services isn’t cheap.

Flooding isn’t what most people think as flooding. Flooding can mean, and generally does mean flooding that includes heavy rain entering the basement for example. On the other hand, flooding doesn’t mean a frozen pipe due to the heating system failing and a water pipe bursts causing “flooding” in your home.  If you have any questions at all regarding what is and what is not flooding for your home, be sure to have one of our agents fully explain the differences, and they will be more than happy to go over the details and nuances. 

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 at 715-598-9924, will contact you within 24 hours with quotes.

Buying Your First Home — What to Expect

You buy things every day of your life, you’re an expert at making purchases. But, are you prepared to make the largest purchase of your life? When you are shopping for your first home you may get overwhelmed with a process you do not do very often — luckily, there is help available to walk you through the entire process.

Step one when purchasing your first home is to make sure you are ready to take the leap to homeownership — and then committing fully to getting through the process as quick and painless as possible. Deciding if it is the best time for you to purchase a home depends on your financial state and other factors in your life. Here is what to expect when buying your first home.

Where do I Begin?

After you have decided now is the time for you to purchase your first home, you need to start getting your ducks in order. One of the most important assets to have when purchasing your first home is having the proper people on your team. It takes several people to complete the entire home buying purchase, and by recruiting the proper help, you will greatly increase your chances of a successful first home purchase.

The first person you should look for is an experienced real estate agent. A real estate agent will be able to point you in the right direction, regarding what documents are required to get in order and other people you need to recruit for your home buying team. If you’re buying, then you want a “Buyer’s Representative” type of real estate agent.

A real estate agent will be able to represent you when viewing houses, making offers, and closing on the property, all the way to getting the keys in your hand. A competent real estate agent could potentially save you a substantial amount of money in the negotiation process, along with being knowledgeable about the area and current market you are searching for a home in.

Find a Mortgage Broker or Lender

The second person you should contact is a mortgage broker or lender of your choice. One advantage of a mortgage broker is they will find you the best possible loan offer you can get. A mortgage broker works with many lenders and works to connect lenders and borrowers who are best fit for each other. If you have an established relationship with a lender, you may want to get your mortgage through them, otherwise, it is likely a good decision to work with a mortgage broker.

If you haven’t already, get pre-approved here — it only takes a minute and doesn’t impact your credit.

Do I Need a Lawyer?

Your team will also consist of a lawyer or company that handles the legal processes such as title search, title insurance, deed transfer, and perform a closing. Do not get scared though, between your real estate agent and lender, they will help contact the proper people for the legal processes, this will not be a factor you need to worry about.

It is a good idea to have a general understanding of the home buying process before looking for your first home. The first thing your real estate agent will do is discuss with you what matters to you, and what you want in your home. Things like location, budget, and home features will all be things you can discuss with your agent, the more informed your agent is, the better they can find the perfect home for you.

Finding the Right Home

After your real estate agent knows what you are looking for, they will compose a list of homes available for you to look at. Do not expect to find the perfect home instantly, you will likely have to look at several homes, and it could take weeks before you find the perfect one. That said, do not purchase a home unless you are sure it is the one, you need to be 100% committed to your new purchase.

After you have found the home, your agent will help you decide on what to offer the seller. It’s vitally important to understand you can and should negotiate in most situations. However, you should submit an offer you think is fair, or maybe better described as what you think the seller will think is fair. Otherwise, you risk offending the seller and creating animosity in the process, resulting in the seller ignoring you regardless of the offer.

Absent a full value offer, and in some hot markets, even a full value offer won’t be accepted. So, a wise buyer will know, or have a real estate agent advising, what the appropriate offer price should be.

Let Your Team Go to Work

After you and the seller have come to an agreeable price it is time to start the actual purchasing process, this is where your team comes into play. Your real estate agent should send the proper information to your legal team and lender, these three parties will all work together to make sure your home buying process goes as smoothly and quickly as possible.

Make Sure You’re Good to Go

Before buying a home, you should make sure you have all your affairs in order, you need to make sure you are financially stable and ready to stay in your current location. You want to be sure you can afford the house you’re buying — the last thing you want is to file for bankruptcy later in life as a result of your home.

You will be expected to put a down payment on the house, every lender has different standards, but a good guideline is 20% of the purchase price, and you should be sure you can make this down payment without strapping yourself financially.

Once you have everything in order and are ready to start, it is important to build an awesome team that will ensure your home buying process is a success. Buying a home can be stressful, but by taking these steps — the process will go as smooth as possible.

Why an Exclusive Buyer Agent Matters

A recent study conducted by the National Association of Exclusive Buyer Agents (NAEBA) shows that Exclusive Buyer Agents on average are more experienced than traditional real estate agents. In a survey in which both NAEBA member and nonmember agents responded, nearly 60% of the respondents had over 20 years of real estate experience while less than 1% had less than two years of experience. The median respondent had 21–25 years of experience. In addition, over 80% of the respondents had real estate designations or attended classes above and beyond what is required for continued licensing, and over 70% had earned a college degree with the median respondent holding a bachelor’s degree.

This survey was completed in response to the National Association of REALTORS® Danger Report released in 2015 which stated: “The real estate industry is saddled with a large number of part-time, untrained, unethical and/or incompetent agents.” Results were also compared to the 2015 National Association of REALTORS® Member Profile which lists the average REALTOR® as having 12 years of experience and “some college.”

The NAEBA survey concludes: “While Exclusive Buyer Agency makes up a small percentage of the real estate industry, Exclusive Buyer Agents are more experienced than the industry overall.”

What This Means for You

When you’re the buyer, you want someone in your corner whose only job is representing you — not the seller, not both sides of the deal. An experienced buyer’s agent negotiates harder on your behalf, catches problems during inspection, and protects your interests from the first showing through closing day. 1 Reason Realty puts buyer representation first.

Ready to start house-hunting?
Call 715-318-9969 or email service@1reason.com. We’ll be in touch within 24 hours.

3 Essential Things You Should Know About Mortgage Loans Before Buying a House

What is a mortgage? A mortgage is the loan you get from the bank to purchase your home. Every month you make a mortgage payment because the house is not fully yours yet. The bank hangs on to your house as collateral until the loan is paid in full. In addition to knowing the definition, it’s important to know how a mortgage works before you buy a house.

How to Get Preapproved

Before you look for a house, you will need to get preapproved for a mortgage loan. Preapproval is where the bank has looked at your debts, credit score, and income and know that you’re a good candidate to lend money to because you have a good history of paying back your debts. If you have a low credit score, your chances of getting preapproved are not very high. Banks want clients who will pay them back, regularly and on time, which is why it’s important to make sure you have a good credit score before buying a home.

The Different Types of Loans

Prospective home buyers can often choose different interest rates based on the closing costs. There are two different kinds of loans which are the fixed rate mortgage and the adjustable rate mortgage. The fixed rate mortgage has a fixed interest rate that doesn’t change over the course of the loan. This can be a good thing because you will always know what your interest rate will be. The adjustable rate mortgage changes depending on the market, which means it could decrease from what you start with. This means that you might save money over time, but it’s not guaranteed.

Shop Within Your Budget

After you have been preapproved and have determined what type of loan you wish to get, you can start looking for a house, but it is important to remember to look for a house within your budget. You need to be able to pay 20% of the house’s total payment as a down payment in order to be determined for the loan. If you buy over that, you may have to pay an additional fee known as the private mortgage insurance (PMI).

Buying a house can be exciting, but it’s important to know what a mortgage is, how to get preapproved and what kinds of mortgage loans there are before you start shopping within your budget.

Once you buy a home, you’ll also need homeowners’ insurance. Our sister company, 1 Reason Insurance, can get you a quote within 24 hours.

Questions before your lender calls?
Reach us at 715-318-9969 or service@1reason.com.

How to Sell Your Home in Northwest Wisconsin

Selling the home you actually live in is a different experience than selling a rental. There’s no investment spreadsheet balancing the decision — this is where your kids grew up, where you hosted Thanksgiving, where the dog wore a path in the backyard. The financial stakes are still real, but the emotional weight tends to slow people down exactly when they need to move quickly. Here’s how to sell a primary residence in Northwest Wisconsin without leaving money on the table or losing your mind in the process.

Price it from market data, not from memory

The single biggest mistake sellers make is anchoring to what they paid, what they spent on renovations, or what their neighbor’s house closed at three years ago. Buyers don’t care about any of that. They care about comparable sales within the last 90 days, current listing competition, and days on market in your school district. A good listing agent pulls a comparative market analysis (CMA) that looks at closed sales, pending sales, and active listings within roughly a mile — adjusted for square footage, lot size, waterfront footage, and condition. In Northwest Wisconsin, waterfront properties and in-town homes move on very different pricing curves, so make sure your CMA is apples-to-apples.

Overpricing is expensive even when you eventually reduce. Listings that sit on the market for 60+ days get stigmatized — buyers assume something is wrong with the property and start their offers at 10–15% below asking. A correctly-priced home typically gets its best offers in the first 10–14 days while interest is fresh.

Prepare the home like a buyer is coming tomorrow

Before your first showing, walk through your house like you’re seeing it for the first time. Open every closet. Look at every wall. Smell every room. What a buyer notices in 30 seconds — cluttered countertops, pet odors, dark rooms, deferred maintenance — adds up to a lower offer or no offer at all. Decluttering is free and it makes rooms feel larger. Repainting in neutral colors costs a weekend and can raise the perceived value by thousands. Small plumbing or electrical fixes prevent red-flag items from showing up on the buyer’s inspection report and killing the deal late.

Curb appeal sells homes before a buyer ever steps inside. Trim bushes, mow the yard, power-wash the siding, put fresh mulch around the landscaping. In the winter months, keep the driveway and walkways clear and the front porch lit. The photos your agent posts online are the real first impression — buyers decide in under 10 seconds whether to schedule a showing based on the first photo alone.

Pick an agent who knows your local market

A great Realtor® is the difference between selling your home in three weeks for full asking price and listing with a discount brokerage for four months while your life stays in limbo. Local knowledge matters more than brand name: an agent who works Hayward, Spooner, Rice Lake, and Eau Claire every week knows which buyers are active, which lakes are in demand, and how to position your specific property for the specific market. Ask any agent you interview for their last 10 closed transactions — where, how long they sat on the market, and what percentage of asking price they got.

Negotiate from a position of information

When offers come in, it’s tempting to focus only on the headline price. The terms matter just as much. A cash offer at 95% of asking is often stronger than a financed offer at 100%, because it closes faster and doesn’t risk falling through at the appraisal or underwriting stage. Contingencies (inspection, financing, sale-of-home) introduce risk — fewer contingencies usually means a more reliable close. Your agent should walk you through every line of each offer and help you counter strategically, not just reject or accept.

Plan for what happens after you accept

From accepted offer to closing, expect 30–45 days if the buyer is financed, and 10–20 days if they’re paying cash. During that window, the buyer will order an inspection, an appraisal, and a title search. Expect some negotiation around inspection findings — small repair credits are normal, and handling them calmly keeps the deal alive. On closing day, you’ll sign a stack of paperwork at the title company, hand over the keys, and walk out with a check (or wire) for your net proceeds.

Selling a home you actually lived in is emotional work as much as it is financial work. With the right pricing, the right preparation, and the right agent, you can close the chapter cleanly and move on to whatever’s next.

Selling a Rental Property Fast When You’re Strapped for Cash

Rental properties are great investments for those in real estate. They can generate a nearly passive income for you. Unfortunately, sometimes you might need to liquidate your investment to take care of other expenses. If this happens, you could get stuck in a sticky situation. Selling a home or apartment can be difficult, especially when you need to sell quickly. In order to do so, consider the following three steps.

Determine the Property Value

The first step in selling your rental property should be to find out how much the property is worth and decide what the minimum amount you would take for it. You can find out the worth by having an official appraisal done. If you don’t want to pay for an appraisal, you can estimate the worth on your own. This can be done by taking a look at how much similar properties have sold for in your area recently.

When choosing the minimum amount that you are willing to accept, there are a few things you should consider. First, the amount of money that you need to pay your other expenses. However, you don’t want to sell yourself short by only asking for this amount. You should also take into account the costs of selling your property. You might have repair costs as well as realtor fees as you put your house on the market.

Stage It

Taking the time to stage your property might seem counterproductive if you need to sell quickly. But it can actually help get your property off the market faster and for a better price. When you stage the home, keep in mind that you aren’t trying to make it ready to live in. You don’t need to worry about long term quality. You are trying to make it visually appealing for the sale. So instead of using high quality furniture, you can use low quality furniture that looks nice. By staging your property, you show buyers the potential that it has.

Offer Incentives

If you’re having trouble closing the sale, you may need to sweeten the deal a little bit. There are several ways that you can do this. The easiest is to include some or all the furnishings and appliances with the sale. If your property is an apartment, this can be extremely appealing. Other options include paying for the cost of moving for your buyer. You could even throw in a repair/improvement credit.

Being forced to sell your rental property can be a painful decision. After having resigned yourself to that course of action, you may be tempted to just get it over with as quickly as possible. Take a deep breath and work quickly, yet calmly. You want to get the best return on your investment, so don’t sell yourself short on this.

Ready to talk?
Call us at 715-318-9969 or email service@1reason.com. We’ll follow up on your inquiry within 24 hours.