PI-015 (R 03/2023)
Consumer’s Guide to Homeowners Insurance
This guide explains the basic coverages included in homeowners policies, the types of policies,
what you should do if you have a loss, and the Wisconsin Insurance Plan.
Wisconsin Office of the Commissioner of Insurance
125 South Webster Street, P.O. Box 7873, Madison, WI 53707-7873
p: 608-266-3585 | p: 1-800-236-8517 | f: 608-266-9935
ociinformation@wisconsin.gov | oci.wi.gov
Disclaimer
This guide is intended as a general overview of current law in this area but is not intended as a substitute for legal advice
in any particular situation. You may want to consult your attorney about your specific rights. Publications are updated
annually unless otherwise stated and, as such, the information in this publication may not be accurate or timely in all
instances. Publications are available on OCI’s website at oci.wi.gov/Publications
. If you need a printed copy of a
publication, use the online order form (oci.wi.gov/Pages/Consumers/Order-a-Publication.aspx) or call 1-800-236-8517.
One copy of this publication is available free of charge to the general public. All materials may be printed or copied
without permission.
File a Complaint
If you have a specific complaint about your insurance, refer it first to the insurance company or agent involved. If you do
not receive satisfactory answers, contact the Office of the Commissioner of Insurance (OCI).
) to speak with our staff. If sending an email, please
indicate your name and phone number.
• File a complaint with OCI. You can file a complaint online at oci.wi.gov/complaints. If you would like to file your
complaint by mail, visit oci.wi.gov/complaints, email ocicomplaints@wisconsin.gov, or call 1-800-236-8517 for a form.
PI-015 (R 07/2024) 2
Contents
Why You Need Homeowners Insurance ...................................................................................................................................................................... 3
Basic Coverages Included in Homeowners Policies ................................................................................................................................................ 4
Dwelling and Personal Property Coverage ............................................................................................................................................................ 4
Personal Property Floater ............................................................................................................................................................................................. 4
Personal Liability Coverage .......................................................................................................................................................................................... 4
Medical Payments Coverage ....................................................................................................................................................................................... 4
Additional Living Expenses ........................................................................................................................................................................................... 5
Additional Coverages .......................................................................................................................................................................................................... 5
Debris Removal ................................................................................................................................................................................................................. 5
Trees, Plants, and Shrubs .............................................................................................................................................................................................. 5
Credit Card Coverage ..................................................................................................................................................................................................... 5
Common Exclusions ........................................................................................................................................................................................................ 5
Insurance Policy Forms ....................................................................................................................................................................................................... 6
Types of Policies ............................................................................................................................................................................................................... 6
Renters Insurance............................................................................................................................................................................................................. 7
Condominium Insurance ............................................................................................................................................................................................... 7
Other Types of Policies ....................................................................................................................................................................................................... 7
Mobile Homeowners Policy ......................................................................................................................................................................................... 7
Home Business .................................................................................................................................................................................................................. 8
Home-Sharing ................................................................................................................................................................................................................... 8
Farm or Ranch Policies ................................................................................................................................................................................................... 9
Flood Insurance ................................................................................................................................................................................................................ 9
Sewer Backup .................................................................................................................................................................................................................. 10
Umbrella Liability Insurance ....................................................................................................................................................................................... 10
Cost of Insurance ................................................................................................................................................................................................................ 10
Buying the Correct Amount of Coverage .................................................................................................................................................................. 11
Typical Coverages .......................................................................................................................................................................................................... 11
Buying Enough Coverage ........................................................................................................................................................................................... 11
Optional Coverages you May Wish to Consider ............................................................................................................................................... 12
Reducing the Cost of Your Homeowners Coverage ............................................................................................................................................. 13
Deductibles ....................................................................................................................................................................................................................... 13
Discounts ........................................................................................................................................................................................................................... 13
Inventory List......................................................................................................................................................................................................................... 14
If You Have a Loss ............................................................................................................................................................................................................... 14
Loss Chart ............................................................................................................................................................................................................................... 16
Some Tips on Loss Prevention ....................................................................................................................................................................................... 17
PI-015 (R 07/2024) 3
Underwriting Guidelines ................................................................................................................................................................................................... 17
Lender Requirements ........................................................................................................................................................................................................ 18
Price Quotations .................................................................................................................................................................................................................. 18
Insurance Marketing .......................................................................................................................................................................................................... 19
Terminations, Denials, and Cancellations .................................................................................................................................................................. 19
New Policies ..................................................................................................................................................................................................................... 19
Renewal on Altered Terms ......................................................................................................................................................................................... 20
Midterm Cancellation ................................................................................................................................................................................................... 20
Nonrenewals .................................................................................................................................................................................................................... 20
Anniversary Cancellations ........................................................................................................................................................................................... 20
General Anti-Discrimination Laws ........................................................................................................................................................................... 20
For Your Protection ............................................................................................................................................................................................................ 21
Financial Strength .......................................................................................................................................................................................................... 21
Guaranty Fund ................................................................................................................................................................................................................. 21
Wisconsin Insurance Plan ................................................................................................................................................................................................ 22
How to Apply to WIP .................................................................................................................................................................................................... 22
Homeowner Program ................................................................................................................................................................................................... 22
Condition Charges ......................................................................................................................................................................................................... 23
Vacant Property .............................................................................................................................................................................................................. 23
How To Appeal WIP’s Decisions .............................................................................................................................................................................. 23
Problems with Insurance .................................................................................................................................................................................................. 24
Why You Need Homeowners Insurance
The largest single investment most people make is in their home. You can protect your home, possessions, and
liability with a homeowners insurance policy
.
In addition to its availability to homeowners, similar coverage is available for those who rent homes or
apartments. These policies are referred to as tenants or renters homeowners policies. If you are a renter, you do
not need protection against damage to the building itself, but you do need protection against damage to or theft
of your personal property and liability in the event someone falls or gets hurt on the part of the premises you
rent.
A condominium owner may purchase a condominium homeowners policy to insure personal property. Some
policies may also include any additions or alterations not insured by the condominium association. It is important
to check with your condominium association and your agent before buying a policy to make sure you are
adequately covered.
PI-015 (R 07/2024) 4
Basic Coverages Included in Homeowners Policies
The homeowners insurance policy is a package policy combining more than one type of insurance coverage into
a single policy. There are four types of coverages contained in the homeowners policy: dwelling and personal
property, personal liability, medical payments, and additional living expenses.
Dwelling and Personal Property Coverage
Dwelling and personal property coverage
help pay for damage to your home and personal property. Other
structures such as a detached garage, a tool shed, or any other building on your property are usually covered for
10% of the amount of coverage on your house.
Personal property coverage will pay for personal belongings including household furniture, clothing, and other
personal items. The amount of insurance coverage is usually 50% of the policy limit on your dwelling. The
coverage is also limited by the types of loss listed in the policy. The coverage only pays the current cash value of
the item destroyed, unless you purchased replacement cost coverage
.
Your homeowners policy also provides off-premises coverage. This means the policy covers your belongings
against theft even when they are not inside your home. Your insurer will reimburse you for the cost of replacing
your suitcase and its contents if it were lost or stolen while you were on vacation, but only for replacing them with
items of like kind and quality.
Your homeowners insurance policy does not cover your pets. Although your policy does not cover your pet or the
damage it does to your possessions, it will cover injury or damage your pet does to others or their possessions.
Generally, your homeowners insurance policy does not cover your automobile.
Personal Property Floater
Your homeowners insurance policy may provide limited coverage for furs, jewelry, silver, and other valuables. It
may be necessary to insure these valuables with a special addition to your homeowners policy, such as a personal
property floater. A personal property floater itemizes each article, gives a description of the article insured, and
lists excluded perils. It often provides coverage broader than the coverage granted in the home insurance policy.
You should discuss this with your insurance company or agent to determine the availability and cost as well as
your need for this additional coverage.
Personal Liability Coverage
Homeowners policies provide personal liability coverage to non-auto accidents on and off your property if the
injury or damage is caused by you, a member of your family, or your pet. The liability coverage in your policy pays
both for the cost of defending you and paying for any damages the court rules you must pay. Unlike the other
coverages in your policy, liability insurance does not have a deductible
you must meet before the insurer begins
to pay losses. The basic limit for liability coverage is usually $100,000 for each occurrence. You may request
higher limits for an additional cost.
Medical Payments Coverage
Medical payments coverage pays if someone outside your family is injured at your home regardless of fault. The
coverage does not apply to you and members of your household. The medical payments portion of your
homeowners policy may also pay if you are involved in the injury of another person away from your home in
some limited circumstances. Medical payments coverage limits are generally $1,000 for each person. Higher limits
of medical payments coverage are available at additional cost.
PI-015 (R 07/2024) 5
Additional Living Expenses
If it is necessary for you to move into a motel or apartment temporarily because of damage caused by a peril
covered by your policy, your insurance company will pay reasonable and necessary additional living expenses. The
typical policy will pay an amount up to 20% of the policy limit on your dwelling for these expenses. If you move in
temporarily with a friend or relative and without any extra expenses, you will not be paid any additional living
expenses by your insurance company.
Additional Coverages
Your homeowners policy generally provides the following additional coverages for costs beyond the repair of the
house:
Debris Removal
The policy covers the expense of having the debris left as a result of the loss removed from the premises.
Trees, Plants, and Shrubs
Trees, plants, and shrubs around the house are usually covered for 5% of the insurance on the house, up to $500
per item. A homeowners policy provides coverage against theft, fire, lightning, explosion, vandalism, riot, and
even falling aircraft. However, it does not cover windstorm damage. Because wind causes so much damage to
gardens and landscaping, including coverage for windstorm damage would make the insurance unaffordable for
most people.
Credit Card Coverage
Personal property coverage may extend to credit cards as well. Some policies will pay up to $500 to cover
unauthorized use of your credit cards.
Common Exclusions
One major exclusion in most policies relates to water damage. Water damage caused by flood, surface water,
overflow of a body of water, or spray from any of these whether or not driven by wind is usually excluded.
Water damage due to sewers or drains backing up is also excluded.
Most homeowners policies do not provide coverage for the loss of animals, birds, or fish, or damage to
automobiles. Damage resulting from war, nuclear hazard, neglect, earth movement, or power failure is not
covered. If you own a boat, you should ask your agent whether it is covered under your policy. Some policies
cover small motorboats and sailboats, but not larger ones.
What is covered by your insurance policy as well as what is excluded from your policy varies from insurer to
insurer.
Ask questions before you purchase a policy. Here are examples of commonly asked questions:
In case of serious damage:
• What kind of proof of loss will I need?
• How do the deductibles work?
• What happens when a tree falls on my roof?
• How does the insurer figure depreciation
?
PI-015 (R 07/2024) 6
• Is ice damage covered?
• What about debris removal? - from my buildings? - from my neighbors' buildings?
• Does my homeowners policy provide coverage for my personal computer?
• Am I covered for food spoilage during a power failure?
• How do the additional living expenses benefit work?
Insurance Policy Forms
An insurance policy form is another name for an insurance policy. It specifies what perils your home and
belongings are insured against. The following are descriptions of the various insurance forms available for
homeowners, renters, and condominium owners. You should note that not all insurers use these exact terms to
describe their home insurance forms.
Types of Policies
In Wisconsin, there are several types of homeowners policies available. They vary according to the coverage in the
policy and the type of dwelling being insured.
Broad Form (HO-2) covers fire or lightning, windstorm or hail, theft, explosion, smoke, damage from vehicles
and aircraft, glass breakage, removal of property endangered by peril, vandalism and malicious mischief, and riot
or civil commotion. HO-2 also covers building collapse; freezing of or accidental discharge of water or steam from
within plumbing, heating, or air conditioning systems and domestic appliances; falling objects; weight of ice,
snow, or sleet; and rupture or bursting of steam or hot water heating systems.
Special Form (HO-3) insures your dwelling and detached structures against loss or damage from any peril except
for the ones specifically listed in the policy as being excluded. HO-3 also provides coverage for damage to
personal property caused by any of the perils covered by HO-2. For an additional premium, a special personal
property coverage endorsement (HO-15) can be added to extend HO-3 to provide “comprehensive” coverage on
unscheduled personal property.
Comprehensive Form (HO-5) is not often sold today, but you could have one from earlier years. It has an even
shorter list of exclusions
. Not all insurers offer HO-5, but many offer similar policies.
Modified Coverage Form (HO-8) is designed to provide package coverage to the owner-occupants of homes
that do not meet all the requirements applicable to other homeowner policies. HO-8 provides building and
personal property coverage slightly more restrictive than other homeowner policies for owner-occupants
including a replacement cost clause. HO-8 is particularly well suited for residences that have suffered extensive
depreciation.
Your home may not qualify for one of the homeowners package policies. Therefore, a company may offer you
limited coverage on your house. This coverage may be Fire and Extended Coverage. Your home and only your
home would be covered for damage due to very specific perils or losses.
Dwelling Policy
You will see the term “dwelling” appear in a homeowners policy. In the context of a homeowners policy, dwelling
means the structure in which the homeowner lives.
A dwelling policy provides more limited property coverage than a homeowners policy. The dwelling policy only
provides property coverage (protection for individuals and families against loss of a dwelling or personal
PI-015 (R 07/2024) 7
belongings). It does not provide liability coverage. The homeowners policy covers more. It offers a combination of
property and liability coverages.
Dwelling policies may be used to insure homes not qualifying for homeowners insurance. For example, they are
commonly used to insure seasonal homes unoccupied for portions of the year. To qualify for dwelling insurance, a
building does not have to be occupied by the owner, and it may even be under construction. Some types of
stationary mobile homes qualify, as well as homes with up to five boarders, and four-unit apartment complexes
(although some mobile homes may qualify for the broader coverage of a homeowners policy).
Renters Insurance
If you rent an apartment or a house, you are responsible for insuring your personal possessions and obtaining
personal liability coverage. Personal liability coverage protects renters the same as it would if you were a
homeowner. The owner of the property is responsible for insuring the building and for obtaining their own
liability coverage.
Tenants Form (HO-4) or renters policy insures your household contents and personal belongings against the
perils included in the homeowners HO-2 policy. Like homeowners insurance, it provides coverage for additional
living expenses, medical payments, and includes personal liability protection.
Condominium Insurance
Your condominium association should purchase a policy covering the building, including any common walls and
grounds. The policy should also include personal liability protection associated with common properties. You
have a right to examine your association's policy.
To protect your contents and interior walls, you may purchase a Unit-Owners Form. An individual unit-owner
policy is similar to the homeowners and renters insurance policy.
Condominium Unit-Owners Form (HO-6) provides coverage for a unit owner who wishes to insure their
property or to cover any items not insured by the association’s policy. HO-6 also pays for property damage to
personal belongings, walls, floors, ceiling coverings, and any accessories not originally installed in the unit. It also
provides personal liability protection.
Check with your agent to see if loss assessment coverage is included in the policy. Loss assessment coverage may
provide additional coverage of $1,000 when the condominium association levies an assessment to cover expenses
for direct losses to the common property. Additional coverage may be available for an increased premium.
Other Types of Policies
Mobile Homeowners Policy
The mobile homeowners policy is a package of insurance written specifically for mobile homes including coverage
on the mobile home as well as theft and liability protection.
A mobile homeowners policy can be either a named peril or a comprehensive policy. The named peril policy
usually provides coverage for fire, lightning, explosion, transportation, theft, windstorm, riot or civil commotion,
and personal effects. The comprehensive policy protects against all risks of physical loss, with stated exceptions.
Be aware you are liable for any damages resulting from an unnamed risk
or for exceptions in your comprehensive
policy. A mobile homeowners policy also provides personal property coverage, personal liability coverage, and
medical payments coverage. Talk with your agent about other coverages.
PI-015 (R 07/2024) 8
Mobile Home Tie-Down Requirements
An insurer may require your mobile home to be secured to the ground by approved tie-downs and ground
anchors unless the mobile home is secured to the ground on a permanent foundation. It is up to the homeowner
to provide for such tie-downs or insurance coverage may not be provided because of the requirements imposed
by the company.
Tie-down requirements vary among insurers. Contact your insurance agent or insurance company to see exactly
what your insurance company’s requirements are for tie-downs.
Items to Remember for Mobile Home Policies
Mobile home policies are written on an actual cash value basis, which means the depreciation of the mobile
home is taken into consideration at the time of a loss. There are a few companies currently writing
replacement
cost coverage on mobile homes. You need to check with your agent to see if this coverage is available.
Before you buy mobile home insurance, make sure your agent explains the coverage provided by the policy and
the cost of the coverage. Not all mobile home policies are alike or standard. Different companies charge different
premiums
for the coverage provided by the policy. Make sure you understand all coverages and costs.
Mobile home policies may require either a wind deductible and/or hail deductible. Some companies offer higher
deductibles that will reduce your total premium charge. Be sure you understand what specific deductibles are
involved with your mobile home policy.
Make sure any additions to the mobile home are added to your insurance policy. Check with your agent to be
sure adjacent sheds, tipout rooms, skirting, and built-on rooms are covered by your policy.
If your mobile home is to be moved by a common carrier, you should be sure the carrier provides adequate
protection in the event of a loss. The common carrier’s insurance coverage may not be enough, and you may
need to buy more. Contact your insurance agent before you move your mobile home to another location.
Home Business
Discuss your home business insurance needs with your agent to buy the policy that best fits your needs.
If you operate a home business full- or part-time, you might be uninsured and not realize it. Many home business
owners believe their homeowners insurance policy covers all their home business needs. You should not assume
your homeowners insurance policy will cover your home business.
Your homeowners policy usually does not cover business-related liability, for example, if a customer or supplier is
injured on your property. A homeowners policy does not insure your inability to collect your accounts receivable
if your business records are damaged, and your policy will not replace lost income if you cannot operate your
business due to damage to your home.
Home-Sharing
Most homeowners policies provide coverage if a home visitor falls and is injured. However, that is likely not the
case if a paying guest falls in your home, because the coverage may not apply to commercial use of the property.
Without liability insurance protection from the company facilitating the host agreement, your homeowners or
renters insurance policy might leave you with no coverage.
Homeowners policies vary but usually exclude or provide very limited coverage for homeowners who are running
a business in their home. Once you begin earning income from renting out your home or a room in your home,
you are probably considered a home-based business. If you lease out a room or your entire home for profit, your
insurer could claim you are essentially running a hotel or bed and breakfast and deny coverage. However, if you
PI-015 (R 07/2024) 9
seldom rent out your home, your insurer might provide coverage. A renters insurance policy is subject to the
same limitations as a homeowners insurance policy.
Talk to your agent about your situation to be certain of what coverage you may or may not have related to
participation in this activity. If you only occasionally rent a room or your home, your current homeowners insurer
might be willing to provide an endorsement to protect you. However, if you plan to rent out your home long term
or if you plan to frequently rent out a room or the whole home, landlord property insurance or rental coverage
for landlords might be your best option. A landlord insurance policy will cover your home, structures on the
property, property contents you own (such as appliances and furniture), lost rental income due to building
damage, legal defense costs, and liability protection.
For guests, hosts may only rent their property to guests who have homeowners, renters, or personal liability
insurance and can show proof they are insured. If they have this coverage and they are liable for damages to your
property, you could file a claim
under their applicable policy.
Your homeowners, renters, or personal liability insurance policy will generally protect you even as a guest if you
happen to cause damage to a host's property. However, a home-sharing company (e.g., Airbnb, VRBO) may still
reserve the right to make a claim under your homeowners or renters policy for any damage or loss you cause to
an accommodation.
It is important to talk to your agent to get further clarification on what coverages you may or may not have as
relates to any home-sharing arrangements you participate in. Get more information from OCI about home
sharing at oci.wi.gov/HomeSharing
.
Farm or Ranch Policies
A farmowners policy resembles a homeowners policy in many ways. The usual farmowners policy does not
provide replacement cost coverage on your dwelling no matter what policy limits you may purchase. You can buy
replacement cost coverage for your farm, but you must ask for it. Crops, livestock, and farm equipment usually
must be insured under separate policies. Check with your agent to make sure your entire farm operation is
adequately insured.
Flood Insurance
A homeowners insurance policy does not include water damage as a result of flooding. You may, however, be able
to purchase flood insurance through the National Flood Insurance Program (NFIP). To qualify for the NFIP
program, you must live in a designated community that complies with the federal government’s guidelines for
flood prevention. The best person to help you buy flood insurance is the agent or the insurer from whom you
obtain your homeowners or automobile insurance. Flood insurance may be bought through any licensed property
or casualty insurance agent in Wisconsin.
Some insurers issue flood insurance policies, in partnership with the federal government, as a service and
convenience for their policyholders. In those instances, the insurer handles the premium billing and collection,
policy issuance, and loss adjustment on behalf of the federal government. These insurers are called Write Your
Own (WYO) insurers. If your agent or insurer is not in the WYO Program, you may be referred to another agent or
insurer involved in the program. Your agent may also order the policy for you directly from the federal
government.
For general information on the flood insurance program, contact:
National Flood Insurance Program
FloodSmart@fema.dhs.gov
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1-877-336-2627
floodsmart.gov
Sewer Backup
Losses from the backing up of a sewer or sump pump are not covered under your homeowners insurance policy
and are probably not covered by your flood insurance policy. Sewer backup coverage is an endorsement available
through most insurance companies, but may not be offered to you when purchasing homeowners insurance
coverage if you do not ask for it. Ask your agent for more information on sewer backup coverage.
Umbrella Liability Insurance
Umbrella policies
supplement the liability coverage you already have through your home and auto insurance and
provide an extra layer of protection. Umbrella policies kick in after the liability insurance limits in your
homeowners and auto policy are exhausted.
For example, if you are responsible for someone’s injury that requires $150,000 of medical treatment and the
liability limit of your homeowners policy is $100,000, your umbrella policy will pay the additional $50,000. There
are some situations, such as libel and slander, that a standard policy does not cover. An umbrella liability policy
enables people to protect themselves against catastrophic lawsuits in such situations.
Umbrella policies are sold with a variety of limits, commonly $1 million or $5 million. Many companies won’t sell
you an umbrella policy unless your primary insurance coverage is with them. In addition, your insurer may
stipulate your auto or homeowners liability limits be at least a certain amount, such as $200,000 to $300,000.
Umbrella policies are usually sold with a deductible ranging from $250 to $1,000.
Umbrella liability policy coverage usually protects policyholders wherever they travel. Many such policies will
cover legal defense costs even if the charges are proven baseless. Umbrella liability coverage is often in high
demand among individuals who have substantial assets and who may be especially vulnerable to lawsuits and
costly judgments.
Cost of Insurance
Be a wise consumer and shop around for the best price. Make sure you compare similar policies between
companies, with the same deductibles and levels of coverage.
Comparison shopping for homeowners insurance is worth it. Insurance companies vary substantially both in the
price of their policies and the level of service to consumers. The cost of homeowners insurance depends on the
type of construction, location of the home, and amount of insurance. A brick structure, for example, is more fire-
resistant than a wood-framed structure and therefore sometimes costs less to insure. Many insurers also charge
less to insure a newer home than an older one because newer homes are less likely to sustain damage in storms
and fires. Some areas have greater crime and vandalism problems than others. In addition, the structure's location
affects the cost of coverage because some communities have better fire protection than others.
Most insurance companies divide the state into rating
territories. Each city and locality in Wisconsin is given a fire
protection classification ranging from one to 10, depending on the amount of fire protection in the area. These
rating classes depend on such factors as water pressure, access to a fire department, and the training and skills of
firefighters. Most of the larger cities in Wisconsin are in classes one through four, the lowest rating classes. Small
towns and rural areas have higher fire protection classes and generally higher prices.
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While the price you pay is important, buying the least expensive policy is not necessarily a good idea. Insurance
sounding too good to be true probably is. Then again, looking only at benefits could result in paying a higher
than necessary premium. You should consider all of the following when choosing a company and a policy:
• Premium
• Benefits, including any coverage exclusions or limits
• Service (what’s involved in making a claim?)
• Renewability (how easily can you be canceled?)
• Financial strength and reliability of the company
• Company management philosophy
Buying the Correct Amount of Coverage
Typical Coverages
In a homeowners policy, the amount of personal property and other coverage automatically provided is a fixed
percentage of the amount of coverage on the home.
For example, under a Homeowners Form 2, this is how it would work:
Type of Property
Insured for
Percent of Dwelling
Insurance
If Dwelling is Insured for
$60,000
Detached Garages, Storage Sheds, etc.
6,000
10%
Unscheduled Personal Property on Premises
(Possessions)
30,000
50%
Unscheduled Personal Property off Premises
3,000
10% of personal property
Additional Living Expenses
12,000
20%
Personal Liability
100,000
per occurrence
Medical Payments
1,000
Buying Enough Coverage
Before buying homeowners insurance, you need to understand the difference between “replacement cost” and
“actual cash value.” Most homeowner policies contain replacement cost coverage on the home and actual cash
value coverage on personal property.
Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials
of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in home or property
value since the time it was built or purchased because of age or wear and tear. To qualify for replacement cost
coverage, the dwelling is required to be insured to at least 80% of the replacement cost.
The amount of replacement cost coverage available is limited to the amount of insurance you choose to buy. The
coverage amount is stated on the declarations page of your policy. If you purchase an amount less than 80% of
the replacement cost of your home, your insurance company will not be obligated to pay the total cost of loss to
your home even if there is a small loss. The “loss settlement” section of your policy explains how the settlement is
calculated.
PI-015 (R 07/2024) 12
Do not confuse replacement cost with market value. Market value is a real estate term describing the current value
of your home if you were to sell it, including the price of the land.
Actual cash value is the value of your property when it is damaged or destroyed. This is usually figured out by
taking the replacement cost and subtracting depreciation. Contents coverage (for such items as furniture,
electronics, and appliances) is usually on an actual cash value basis. For example, a chair costing $500 to replace
may have a reasonable “life” of 20 years. If it is destroyed after 10 years, its actual cash value will be much less
than $500, probably about $250. Most policies pay for losses to your contents on an actual cash value basis.
You should discuss with your insurer or insurance agent which coverage is right for you.
Guaranteed replacement cost coverage (also called extended replacement cost). Guaranteed replacement cost
coverage is more complete coverage for your home. It will pay the full amount needed to replace your home if it
is destroyed by a covered peril, even if the amount is more than the policy’s coverage limits stated on the
declarations page of your policy. To obtain this type of coverage, you typically must meet specific underwriting
rules and conditions of the company. This may include selecting a dwelling limit equal to 100% of replacement
cost and increasing the amount of your insurance on a monthly, quarterly, or yearly basis to keep up with the
inflation rate. Many companies will not offer this additional protection on older homes. Check with your insurance
agent to determine if an additional premium is required and if there are exclusions or conditions.
Most homeowners policies include an inflation guard. This automatically increases the value of your policy as the
value of your home increases. Even if you have this, you should check periodically to see if your home is insured to
its full value.
Whether your home is insured for replacement value or actual cash value, it is important to keep track of its value.
For instance, the addition of a room, new insulation, and yearly inflation all increase the replacement cost of your
home, while the actual cash value of the home may decrease over time.
Check with your agent or insurance company at least once a year to make sure your policy provides adequate
coverage.
Optional Coverages You May Wish to Consider
Secondary Residence Premises Endorsement
Homeowners coverage under this endorsement applies to a secondary residence (example: summer home).
Remember these secondary residences are not automatically covered by the home insurance policy on your
primary or principal residence.
Watercraft Endorsement
Applicable to small sailboats and outboard motorboats, this endorsement broadens personal liability and medical
payments coverage on them.
Theft Coverage Protection Endorsement
As a result of this endorsement, your theft protection is broadened. The contents of your motor vehicle, trailer, or
watercraft are covered without proof of forcible entry. This endorsement applies only to insurance forms HO-2,
HO-3, and HO-4.
Credit Card Forgery and Depositors Forgery Coverage Endorsement
Loss, theft, or unauthorized use of credit cards (with certain exceptions) is covered by this endorsement. Also
covered is the forgery of any check, draft, promissory note, etc., again with certain exceptions.
PI-015 (R 07/2024) 13
Reducing the Cost of Your Homeowners Coverage
Deductibles
Deductibles reduce costs because you pay the first $250, $500, or $1,000 of every loss. The deductible applies to
only coverage on your house and personal property. Since you are actually “self-insuring” for the deductible
amount, you should ask if the savings are worth it.
There are many kinds of deductibles. Some insurers have “flat” $50 or $100 deductibles applying to all covered
losses. Others apply the deductible only to certain losses. Some provide a “disappearing” deductible. The
deductible decreases as the amount of the loss increases. When your loss exceeds a certain amount, the
deductible “disappears”, and the insurer pays the full amount.
The higher the deductible, the lower the premium on your policy will be. For example, homeowners policies
provide for $100,000 to $250,000 coverage, the standard deductible is $250. If you take a deductible of $500, the
premium may be about 5% to 10% lower.
Discounts
Every insurance agent or company selling homeowners insurance has a package of “special” discounts to attract
particular types of customers. Below is a sample of discounts to ask your agent about.
Multiple-Policy Discounts
Many insurers sell homeowners, auto, and liability coverage. The company may take 5% to 15% off your premium
if you keep two or more policies with them. If you already have an auto policy with one insurer, find out if they
would give you a discount on homeowners coverage.
Credits for Protection Devices
You can usually get discounts of 2% to 5% for a smoke detector or a burglar alarm. Some insurers offer to cut
your premium by as much as 15% to 20% if you install a sophisticated sprinkler system and a burglar alarm
notifying the police. But these systems are costly and not every system on the market may qualify for the
discount. Before taking any action, find out what devices would cost versus how much premium you would save.
Nonsmoker Discounts
A few insurers offer to reduce premiums for homeowners who do not smoke. (You will not qualify for this
discount if any family member who lives with you is a smoker.)
Fire-Resistant Building Materials
A few insurers offer discounts for homes made of fire-resistant materials.
Long-time policyholders. If you have maintained coverage with an insurer for several years, you may qualify for
special considerations. Several insurers will reduce their premiums by 5% if you stay with them for three to five
years and by 10% if you remain a policyholder for six or more years.
A good agent will be able to inquire about your particular circumstances to acquaint you with all applicable
discount packages offered by the insurer they represent.
PI-015 (R 07/2024) 14
Inventory List
It is very helpful to prepare some type of reasonable inventory of your possessions before something happens to
them. A simple way to do this is to go from room to room, make a written list of your possessions, and record
their values. You may want to stick with items worth $100 or more since adjusters generally don’t question claims
for the common possessions most people would be expected to own. Do make special note of property that is
unusual, or unusually valuable. Do not forget the garage, basement, attic, and outdoor storage areas. Taking
pictures of your belongings is even easier. A video camera does an especially quick and thorough job of
documentation.
Preparing an inventory accomplishes two important things. First, it will make the process of filing a claim more
orderly and less stressful should you have a loss. Second, it can help you determine whether some of your more
valuable possessions require more coverage than your present policy limits provide. OCI publishes a
recommended Personal Property Home Inventory, which can be downloaded or printed from
oci.wi.gov/Inventory
.
A written list, which is helpful, may not be acceptable proof to an insurance company of an item's existence or
that you owned it. Check with your agent or insurance company to know their requirements.
Receipts for purchases are the best documentation. You should keep all receipts and photos with your inventory
list. Arrange to store your documentation at a site other than your home—for instance, a safety deposit box or
the home of a responsible friend—then you will not have to worry a fire or other calamity will destroy your
records just when you need them most.
If You Have a Loss
Call the police. Report theft losses to your local law enforcement agency immediately. If you have lost your
checkbook or credit cards, notify the bank or credit card companies.
Call your agent or insurance company. Phone your agent or insurance company promptly. Have your policy
number and any relevant information ready.
Ask your agent or insurer. Find out what documents, forms, and data you will need. If you have any questions,
your agent or insurer will be able to assist you in filling out the forms.
Make necessary repairs. If your property has been damaged, it is important to make any necessary temporary
repairs to protect it from further loss or damage. For example, if windows are broken, have them boarded up to
protect against vandalism or weather damage. A claimant has a legal obligation to mitigate their damages to a
reasonable degree.
Save receipts. Expenses for making necessary temporary repairs are covered under your policy so be sure to save
any receipts or bills. Permanent repairs must wait until the insurance adjuster has had a chance to review the
damage.
Determine the damage to your property. Begin by making a written list of what was damaged. Make a separate
list of personal property items damaged beyond repair. If you have maintained a household inventory, this
process will be much easier. Contractors, catalogs, and local retailers also are good sources for current cost
information.
PI-015 (R 07/2024) 15
Submit a copy of your list to your insurer. The list should include information used to support the actual cash
value or, if your policy covers the replacement cost of personal property, the replacement cost of the damaged
items. The necessary information includes purchase dates, purchase price, and cost to replace with a similar item.
Make your report of the damage and your list as complete as possible. Use any purchase receipts, photos, or
other information still available to help prove the value of your claim.
If you cannot live in your damaged home, keep all receipts for additional living expenses, list them, and submit a
copy to your insurer. Your insurer will make an offer to repay you for the additional expenses covered by your
policy.
It is important to keep the lines of communication open between you and the insurance company
representatives. If you feel the amount of money offered by the insurer is not fair, there are several alternative
courses of action you may consider:
• You can request the loss be valued by appraisers who do not work for your insurer.
• You can file a complaint with OCI.
• You can hire an attorney to represent your best interests.
If there has been a major storm or other disaster in your area, check local news sources to see if a disaster
assistance center has been set up in your area.
PI-015 (R 07/2024) 16
Loss Chart
Below is the loss chart providing a quick summary of what losses will generally be covered in a specific policy
type. Since coverage varies, it is important to read your policy. If you have questions, contact your agent or
insurer.
Kind of Policy Losses Covered
HO-2
Broad
HO-3
Special
HO-
3/
HO-
15
Comp.
HO-4
Renters
HO-6
Condo
HO-8
Dwelling Contents
Fire or lightning
Loss of property removed from premises endangered by fire or other perils
Windstorm or hail
Explosion
Riot or civil commotion
Damage from aircraft
Damage from a vehicle
Smoke
Vandalism and malicious mischief
Theft
Breakage of glass constituting a part of the building
Falling objects
Weight of ice, snow, sleet
Collapse of building(s) or any part thereof
Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water
heating system or of appliances for heating water
Accidental discharge, leakage, or overflow of water or steam from within a plumbing,
heating, or air-conditioning system or domestic appliance
Freezing of plumbing, heating, and air-conditioning systems and domestic appliances
Sudden and accidental damage from artificially generated currents to electrical appliances,
devices, fixtures, and wiring (TV and radio tubes not included)
All perils except flood, earthquake, war, nuclear accident, and others specified in your policy—
check your policy for a complete listing of perils not covered
PI-015 (R 07/2024) 17
Some Tips on Loss Prevention
Taking steps to prevent losses is just as important as buying insurance to cover them.
• Install smoke and heat detectors near sleeping areas.
• Keep your house or apartment clear of accumulated trash, oily rags, and combustible materials.
• Check lamps, lamp cords, and light switches to make sure there is no faulty wiring.
• Practice home fire drills. Make sure everyone (especially children) knows what to do in case of a fire.
• Keep matches and lighters away from children.
• Make sure smokers do not smoke in bed.
• Install adequate locks on your home and take other precautions such as not letting newspapers accumulate
in your absence.
• Many insurers, fire departments, and civic associations provide window decals to identify rooms occupied
by the elderly and children so they may be evacuated first in the event of an emergency.
Underwriting Guidelines
Applications for property insurance often ask for personal information, such as the type of job you have, where
you work, your leisure activities, and whether or not you have had recent claims.
Job and work information. Information about your job and where you work alerts your agent and insurance
company to gaps in your coverage and possible hazards. If you work at home you may need special advice on
insurance items used for your business or more liability insurance.
Leisure activities. Certain leisure activities may also increase your chances of having a loss. Hobbies involving the
use of flammable chemicals, paints, or varnishes present a higher than normal fire hazard. If you are an antique or
art collector you may need to insure these objects separately.
Claims history. A history of claims can also affect your application for insurance. Your agent and insurer will need
to know what caused past claims in order to determine whether or not the same type of claim is likely to occur
again. Have you taken all reasonable actions to prevent repeated losses? Is your home subject to repeated losses
simply because of its construction or design?
Frequent claims caused by factors beyond your control, such as wind and hail, can still pose a problem. In this
case, the insurer may ask you to carry a higher deductible, the portion of a claim you would pay out of your own
pocket.
Credit information. Consumer credit reports may be requested by an insurer when writing new or renewal
policies for both commercial and personal risks. Some insurance companies use credit information as an indicator
of the frequency and severity of future claims.
Insurance companies using credit information must do so in a way that is not unfairly discriminatory. If an insurer
rejects your insurance application based on information contained in your credit report, you have the right to review
the report information for accuracy, at no charge. You must request a copy of the report directly from the credit
agency. Your insurance company will provide you with the credit agency's name, address, and telephone number.
PI-015 (R 07/2024) 18
Insurers may use credit information as one of the criteria they consider when underwriting personal lines
insurance. However, it is the position of OCI that insurers should not use credit information as the sole reason to
refuse an application, cancel a new insurance policy in its first 60 days of coverage, or nonrenew an existing
policy.
For more information on the Fair Credit Reporting Act see the Consumer Financial Protection Bureau (CFPB)
website at consumerfinance.gov/blog/category/fair-credit-reporting-act
.
OCI publishes a fact sheet with information about how insurance companies use credit history. Understanding
How Insurance Companies Use Credit Information is available at oci.wi.gov/CreditInsCo
.
Lender Requirements
Your lender will require you to cover your home for at least the amount of the mortgage. This may be either too
little or too much coverage for your individual circumstances. Generally, the lender will require you to have
homeowners insurance at the time of your closing. The lender will usually request a copy of the policy and the
cover page showing coverage amounts.
Your lender will also require you to name the lending institution as a loss payee (this protects the lending
institution in case of loss). You are not required to purchase insurance from the insurer recommended by your
lender. However, if you fail to keep your coverage in force, the lending institution will purchase coverage
protecting its interest and you will most likely have to pay for this coverage. This type of coverage, known as
lender-placed insurance, is much more expensive than shopping for an insurance policy.
Price Quotations
When shopping for homeowners insurance, premium quotations are a useful tool for comparing different
companies' products. When asking for price quotations, you must provide the same information to each
insurance agent or company.
To give you an accurate quote, the agent or company will usually request the following information: (This
information is available on the real estate listing for the home.)
• Description of your home:
o complete address
o what is your home made of (all wood, all brick, 2/3rds brick, stucco)?
o is your home one story, two stories, split level, or other?
o how many rooms?
• How old is your home?
• What is the distance from the nearest fire department and fire hydrant?
• What is the square footage of your home?
• Does your home have any security devices?
• What are the coverages, limits, and deductibles you are interested in insuring your home?
PI-015 (R 07/2024) 19
Insurance Marketing
When you begin to contact insurers, there are a few things you should know about how insurance companies
work. Insurance is sold directly through a company or indirectly through an agent or broker. An independent
agent may represent more than one, and sometimes several, insurance companies. An exclusive agent (or
captive agent) sells solely for one company or group of related companies if the company or group writes that
type of insurance. Independent agents, as well as exclusive agents, may place business with another company if
the company(s) he or she represents does not write the type of insurance needed. A broker represents you in
your dealings with an insurance company.
When you first talk to an insurance agent or broker, be sure they are willing and able to explain various policies
and other insurance-related matters. An agent or broker should look for ways to get you the most protection at
an affordable cost. Make certain your agent or broker agrees to review your coverage from time to time, advises
you about other financial services, and assists you when problems develop.
Many people are interested in selling package products or services to as many people as possible. While there is
nothing wrong with low cost, standardized products, they should fit your needs. If you are not convinced a
particular agent or broker understands your needs and will give you the service you want, continue to shop around.
Agents, brokers, and companies differ. Friends may have some recommendations. You may also want to try the
internet to find a suitable agent or insurance company.
Before signing an application for any insurance coverage, check OCI's website to verify the company, agent, or
broker you are dealing with is licensed in Wisconsin. It is illegal for unlicensed insurers to sell insurance. Business
cards are not proof of a licensed insurance agent, broker, or company. If you do business with an unlicensed
agent, broker, or company, you have no guarantee the coverage you pay for will ever be honored. If you purchase
insurance from companies not legally doing business in the state, you will not be protected by the Wisconsin
Insurance Security Fund should the company fail.
If you are contacted by an unlicensed agent, broker, or company, call OCI immediately so regulatory action can
be taken. By doing so, you may protect someone less knowledgeable than you from being victimized.
All states require insurance agents and companies to be licensed to sell insurance. All insurance companies,
agents, and brokers doing business in Wisconsin are licensed by OCI. Licensing information about agents and
companies can be found on the OCI website at oci.wi.gov/Lookup
or by calling 1-800-236-8517.
You should be aware that a homeowners insurance policy is a legal contract. It is written so your rights and
responsibilities as well as those of the insurance company are clearly stated. When you purchase homeowners
insurance, you will receive a policy. You should read the policy and make certain you understand its contents. If
you have questions about an insurance policy, contact your insurance agent or company for clarification. Keep
your policy in a safe place and know the name of your insurer. If you still have questions, contact OCI.
Terminations, Denials, and Cancellations
New Policies
When your policy first becomes effective, the insurer may cancel your policy at any time within the first 59 days
without providing you with a reason for the cancellation. The cancellation is not effective until at least 10 days
after the insurance company mails or delivers to you a written notice of cancellation.
PI-015 (R 07/2024) 20
Renewal on Altered Terms
Sometimes an insurer will renew a homeowners policy but will raise the rates or make the terms less favorable to
the insured. An insurer may not alter the terms of coverage until 45* days after a notice is mailed to you. To be
effective, the notice must be mailed or delivered prior to the renewal date. If the notice is given less than 45* days
before the renewal date, the new terms or premium increase will not become effective until 45* days have
elapsed from the date the notice is given. By state law, these conditions do not apply if the only change is a rate
increase of less than 25%.
*60 days for commercial policies
Midterm Cancellation
A midterm cancellation occurs during the policy term and prior to the policy’s expiration or renewal date. An
insurance company may cancel coverage during this period only if the premium is not paid or if the policy states
other reasons for canceling. The insurer must either mail or deliver to you a written cancellation notice. By state
law, no cancellation is effective until at least 10 days after the mailing or delivery of the notice.
Nonrenewals
Nonrenewal of a policy refers to the termination of a policy at the expiration date. If an insurer decides it does not
want to renew your policy, it must mail or deliver to you a nonrenewal notice at least 60 days before the policy’s
expiration date. The nonrenewal notice must provide the reason for the nonrenewal. For a homeowner policy, the
insurer must also provide information in the notice on how to apply to the Wisconsin Insurance Plan for coverage.
In most cases, these plans offer property insurance to people who are unable to obtain it in the voluntary market.
If an insurer fails to provide notice prior to the expiration date, it must continue your coverage under the terms
and premium of your prior policy for the term of the policy or one year, whichever is less.
If you are nonrenewed solely because of the termination of your agent’s contract with your insurer, the insurer
must continue your coverage if you request the insurer to do so in writing prior to the expiration date and you
meet the insurer’s eligibility requirements.
There is no grace period required for property insurance.
Anniversary Cancellations
This refers to a policy written for an indefinite term or for more than one year. These policies may be canceled on
any anniversary date if the policies contain cancellation provisions. If your insurer decides to cancel your policy on
an anniversary date, it must mail or deliver to you a written notice at least 60 days before the anniversary date.
If you have any questions regarding renewal, cancellation, or nonrenewal issues involving your insurance
company, you can contact OCI for clarification.
General Anti-Discrimination Laws
There are statutes and rules protecting consumers from unfair discrimination in insurance policies.
• Insurers may not refuse to insure you or refuse to renew your policy on the basis of sex.
• For auto or homeowners policies, insurers may not refuse coverage to a class of risks solely on the basis of
past criminal record, physical disability, past mental disability, age, marital status, sexual preference, “moral”
character, or the location or age of the risk. Insurers may not use these classifications to charge different
rates without credible supporting information. No insurer may cancel or refuse to issue or renew an
automobile insurance policy wholly or partially because of one or more of the following characteristics of
PI-015 (R 07/2024) 21
any person: age, sex, residence, race, color, creed, religion, national origin, ancestry, marital status, or
occupation.
Some of these classifications may be used by an insurance company if its experience supports differences in
losses from these classifications.
For Your Protection
Information is available to consumers from a number of sources. These sources include public libraries, state
insurance departments, consumer groups, and consumer publications. Financial strength and being able to meet
financial obligations to policyholders are very important.
Financial Strength
Independent organizations such as A.M. Best, Standard & Poors, Moody’s Investors Service, and others publish
financial ratings. These rating organizations do not rate the quality of the company’s policies, practices, agents, or
services. You should consider checking with at least two organizations to evaluate a company’s strength. The
ratings for insurers can be found in most public libraries, by asking your agent, or links to rating organizations can
be found on OCI's website at oci.wi.gov/Pages/AboutOCI/LinksOfInterest.aspx
. OCI does not offer independent
evaluations of companies but will provide the A.M. Best ratings, the date a company was licensed in Wisconsin,
and the premium volume of a company in Wisconsin and nationwide.
Important: These agencies rate companies on their present financial ability to pay claims, not by the quality of
products offered or by the past or future ability to pay claims. Check with your insurance agent to discuss which
products best fit your needs.
Guaranty Fund
Every state has a safety net to protect insurance consumers from financial loss in the rare instance a company
becomes insolvent. This safety net is called a “guaranty fund.” The guaranty funds are established by state law and
are composed of licensed companies in the state. They pay the claims of policyholders and other claimants of an
insolvent company. The money to pay the claims against the insurance company comes from assessments made
against all of the insurance companies that are members of the guaranty fund.
In Wisconsin, this fund is called the Insurance Security Fund (Fund). The Fund is created by state law and is funded
by assessments of insurers licensed to do business in Wisconsin. In general, the Fund protects residents for most
claims of licensed insurers in liquidation. The Fund should not be relied upon to eliminate all risks of loss to
insureds due to insurer insolvency. Some types of policies may not be fully covered, and significant delays could
occur in settling obligations in cases of liquidation.
Questions about the coverage and limitations of the Wisconsin Insurance Security Fund may be addressed to
Wisconsin Insurance Security Fund
2820 Walton Commons West, Suite 135
Madison, WI 53718-6797
(608) 242-9473
Email: Wisconsin@wisf-madison.org
Website: wilifega.org
PI-015 (R 07/2024) 22
Wisconsin Insurance Plan
If you try several insurance companies and cannot find coverage, you most likely can be insured through the
Wisconsin Insurance Plan (WIP). WIP operates like a small insurance company. WIP underwrites applications,
surveys properties, and adjusts claims. Independent service providers are used for claim handling and surveys
outside of the Milwaukee area. WIP maintains its own accounting system and issues its own return premium,
commission, and claim checks.
WIP is administered by a Governing Committee subject to the supervision of the Commissioner of Insurance. The
Governing Committee consists of eight insurer representatives, two insurance agents, and five public members.
Any property owner in the state of Wisconsin may apply for insurance under WIP if he or she has had difficulty
obtaining property insurance through conventional sources. WIP provides basic property insurance for homes,
rental dwellings, and certain types of business properties. It does not insure farms, commercial properties
classified as manufacturing, or motor vehicles.
How to Apply to WIP
A licensed property insurance agent must help you in applying to WIP or you can apply without using an
insurance agent. Because buying insurance is complicated, WIP recommends you use an insurance agent. WIP does
not have sales agents.
If your property is rejected by a licensed insurance company, you are notified of the existence of WIP. WIP has
both eligibility and acceptability standards. WIP is not required to insure all properties.
To apply, you and your agent must submit:
• A properly completed application.
• A deposit premium.
• Documentation your property has been rejected for coverage by one other insurance company.
The application is reviewed to decide if all the necessary information is included. If not, WIP will write to you or
your agent.
You may apply for a binder (temporary insurance coverage). WIP will decide if a binder will be issued. Sometimes
a binder will not be issued. If a binder is issued, WIP will decide the type and amount of coverage provided.
Next, a WIP representative visits your property, makes notes on its condition, and takes pictures. Finally, a
decision is made on whether or not to offer you a policy. If a policy is offered, you will receive a premium notice. If
the decision is made not to offer you a policy, you will receive a cancellation notice listing changes or repairs you
must make to be insured by WIP. Usually, WIP provides coverage for a brief time while you make the changes or
repairs. Sometimes you may be offered coverage under a different insurance program WIP has available, such as
its dwelling coverage program.
Premium notices are mailed to you, your insurance agent, and any mortgage holder or additional insureds listed
in the policy. It is your responsibility to make sure WIP receives the proper payment before the due date.
Homeowner Program
The homeowner policy provides property coverage for damage caused by (subject to the provisions of the policy)
fire and lightning, extended coverage perils, vandalism or malicious mischief, and theft on-premises ($1,000 basic
limit).
PI-015 (R 07/2024) 23
Personal property losses are settled on an actual cash value basis (subject to the provisions of the policy). Partial
dwelling losses are settled on the cost of repairs using common construction methods (subject to the provisions
of the policy). WIP does not offer replacement cost settlements for personal property or dwelling coverages.
The only liability coverage offered by WIP is in the Homeowner Program. There is no liability coverage in either
the Dwelling or Commercial Programs.
Condition Charges
Condition charges are additional premiums added to the basic policy premium due to conditions needing minor
repairs present at the property. For example, the property may need paint or have a few shingles missing from
the roof. These are conditions WIP finds concerning but decides to insure the property.
Condition charges are usually not added to the first-year premium. During the initial policy period, WIP sends a
notice and the property survey to you advising of the conditions needing repair. You are advised the premium
charged will increase on the next (renewal) policy period if the conditions are not repaired. You must complete
the repairs and notify WIP in writing 90 days before the renewal date. The amount of the condition charge is
specifically listed on the first renewal premium notice.
If you repair the conditions after the policy renews, you will receive either a return premium or a reduction in
future installment payments due. You must notify WIP immediately after the repairs have been made.
Not all WIP customers have condition charges added to their premium.
Vacant Property
WIP can insure vacant property while it is undergoing active renovation. The policy should meet the requirements
of your lender and allow you to get a repair loan.
Be sure to request an amount of insurance for the purchase price of the property plus the cost of the repairs.
You should consider a WIP policy as temporary coverage. Always continue to shop for other insurance coverage.
Different insurance companies have different rules for insuring properties. If you comparison shop, you may be
able to find better coverage or similar coverage at a lower premium. You can keep your coverage with WIP while
you shop.
After WIP has insured you for four years, WIP cannot renew your policy. You and your agent must shop for
coverage from another insurance company. If you cannot find coverage, you may reapply to WIP.
How To Appeal WIP’s Decisions
If WIP declines to insure your property, reduces coverage on your policy, cancels, or nonrenews your policy, you
have the right to request a hearing before an administrative law judge. Your request for a hearing must be made
within 30 days of the date of the notice you received from WIP to OCI, P.O. Box 7873, Madison, Wisconsin 53707-
7873, 1-800-236-8517. Include your name, address, location of the property involved, the policy number, and
your reasons for the request.
In most cases, a WIP policy is a temporary solution for property insurance problems. WIP is property insurance of
last resort. Consider WIP only if you cannot obtain insurance from any other insurance company. For more
information contact:
Wisconsin Insurance Plan
2115 10
th
Avenue, Suite 201
South Milwaukee, WI 53172
(414) 291-5353
Email: manager@wisinsplan.com
Website: wisinsplan.com
PI-015 (R 03/2023)
Problems with Insurance
If you are having a problem with your insurance or a particular insurance company, it is always best to contact the
insurance company first and attempt to settle the matter. Most insurance companies have consumer service
offices set up to handle such questions.
If you are still dissatisfied, you can file a complaint on the OCI website oci.wi.gov/complaints
, call OCI’s Insurance
Complaint Hotline at 1-800-236-8517, or write to OCI at P.O. Box 7873, Madison, Wisconsin, 53707-7873.
Make sure you include detailed information about your insurance problem. The more complete and accurate this
information is, the more likely it is your problem can be resolved. Be sure you include the correct name of the
insurance company from which you bought the policy. Many companies have very similar names. Listing the
wrong name may delay the investigation of your complaint.
OCI investigates complaints to determine if any insurance laws have been violated. If so, OCI may take action
against the agent or company involved. These actions can include imposing forfeitures or suspending or revoking
licenses. You can search Administrative Actions on OCI's website oci.wi.gov/AdminActions
.
These industry associations may be helpful if you are dissatisfied with the service you receive from your
insurance company or agent:
Independent Insurance Agents of Wisconsin
725 John Nolen Drive
Madison, WI 53713
(608) 256-4429
iiaw.com
Professional Insurance Agents of Wisconsin
725 Heartland Trail, Ste 108
Madison, WI 53717
(608) 274-8188 / (800) 261-7429
piaw.org
Community Insurance Information Center
5205 North Ironwood Road Suite #105
Glendale WI 53217
(414) 291-5360
https://www.insuranceinfo-ciic.org/
