Like driving a car, owning a home comes with certain risks. Though you may not be legally mandatory to purchase insurance, most mortgage lenders require homeowners insurance as a contingency of the loan. Even if you paid your home purchase in full, going without coverage could wipe out the investment you made in your property and potentially even leave you financially insolvent. Whether you are in the process of buying a home or looking to improve your coverage in an existing home, we here at innovante insurance can help you safeguard your property, income, and assets against unexpected loss.
Homeowners insurance covers many types of losses, but not everything. Depending on the type of policy you purchase, your coverage could pay for damages caused only by specifically named perils, or it may offer broader protection with only a few specific exclusions. Generally, a typical policy takes care of losses stemming from events like:
- House fires
- Smoke damage
- Lightning strikes
- High winds
- Hail damage
- Break-ins and theft
- Fallen objects
- And more
Although certain events, such as flooding, earthquakes, and sewer backup may be excluded, coverage may still be available in the form of an endorsement or a stand-alone policy. Talk to an agent about adding these important coverages to your Wisconsin home insurance protection plan.
Types of Wisconsin Home Insurance Coverage
We believe homeowners should understand the components of their insurance, including the various types of coverage included in their policies. A typical Wisconsin homeowners insurance policy includes protection for:
For the purposes of home insurance coverage, there are two types of structures on your property – ‘primary’ and ‘other.’ The primary structure is your home, and the other structures include things like your fence, storage shed, or detached garage. When choosing your structural coverage limits, keep in mind that homeowners insurance is not meant to cover the lot or land your home is on, but it should include enough protection to clean up after a total loss and rebuild your house using similar materials. You can even include automatic coverage increases to account for inflation and the rising costs of construction materials over time.
The personal property section of your insurance helps pay for damages to or loss of your personal belongings. This includes the items inside your home, as well as those stored away from home, such as in your car or luggage while traveling. In many cases, insurers set default personal property coverage limits in correlation to your structural coverage amount. Insurers may also establish additional caps on coverage for certain item categories, such as fine jewelry or furs. We recommend taking inventory of your home to determine if you may need to raise your limits or schedule additional coverage for high-value items.
Note that Wisconsin insurers typically cover personal property in one of two ways. The first – actual cash valuation (ACV) – is considered ‘standard’ coverage and only covers your belongings for their depreciated cash value. That means you may only receive $300 compensation for the $800 sofa you purchased two years ago. The second – replacement valuation – instead compensates you for the full cost of replacing your damaged belongings with brand new ones, minimizing your out-of-pocket costs.
Liability coverage is another important part of your homeowner’s insurance policy. Although it does not cover the loss of your physical items, it can protect you against the loss of your income and savings if you are sued for a third-party injury or loss for which you or a member of your household is accused of being at fault. This includes incidents occurring on your property, as well as many types of accidents occurring away from home, such as on a park playground. When you choose your liability protection limits, we recommend selecting enough protection to cover legal defense costs, court fees, and any potential judgments or settlements you are responsible for.
When guests are injured on your property or in your home, it is essential that they have access to necessary medical care as soon as possible. Medical payments coverage provides compensation for necessary medical expenses up to the limits of the coverage, which is often capped at a few thousand dollars. Although medical payments coverage does not remove any potential liability you may have for the injury, it is no-fault protection that pays benefits even if you are not at-fault for the accident. It may also be enough goodwill to help you deter a potential lawsuit.
When disaster leaves your home uninhabitable, displacement coverage can help pay for the extra living expenses you incur as a result of finding a temporary place to live. This could include the cost of a hotel or rent while your home is being rebuilt, and it may also cover the cost of take-out meals or laundromat fees if you do not have access to a kitchen or washer and dryer.
Wisconsin Home Insurance Quotes
If you are in the market for a new home insurance policy, we want to help you find the affordable, reliable protection you deserve. When you choose innovante insurance, you are choosing an independent insurance agency that looks out for your interests – not the insurer. We can shop and compare rates and coverage from multiple Wisconsin carriers, as well as apply any discounts you may qualify for to lower the cost of your coverage. Additional savings may be available if you:
- Have no recent home insurance claims
- Purchase auto insurance from the same insurer
- Install a home security system
- Have a new roof
- And more
For more information about Wisconsin home insurance options or to request your free quote, contact our office today.