Wisconsin Home Insurance Rates
Purchasing home insurance in Wisconsin will provide a consumer with a special set of challenges that will typically not be found in any other part of the country. Wisconsin is known to be an area that is subject to flooding, blizzards, significant heat and humidity, ice, and there has even, on occasions, been seismic activity. Therefore, a homeowner in Wisconsin needs to be prepared for just about every eventuality when looking for home insurance.
With that said, consumers may be fairly surprised to learn that the average homeowner insurance rate in Wisconsin is currently $575. This is actually significantly lower than many other areas of the country. However, it is true that in recent months home insurance rates in Wisconsin have increased by a substantial percentage.
It is estimated that there are more than 200 Wisconsin home insurance companies that sell policies within the state, and they generally sell four types of coverage, which can be contained within one insurance policy. The coverage options include property damage, personal liability, medical payments and additional living expenses.
- Property damage – Property damage coverage will help to pay for damage to a person’s home and personal property.
- Personal liability – Personal liability coverage will pay for legal fees and damage from non-auto related accidents that the policyholder or someone from their family has caused.
- Medical payments – This form of coverage will pay for medical expenses for anyone outside the policyholder’s own family who is accidentally injured in the policyholder’s home.
- Additional living expenses – This will cover expenses that a policyholder incurs when their home is damaged and must be repaired. This will also provide temporary accommodation in a motel or apartment while the repair work is ongoing.
It is also important to understand the difference between actual cash value and replacement cost when looking at Wisconsin home insurance rates. The actual cash value will take into consideration depreciation of the property, in terms of age, wear and tear, when calculating an insurable loss. However, replacement cost, which is typically offered at a higher premium, will replace and repair using the same or similar materials without having to consider for depreciation. Homeowners will usually have the option to pick one or the other.
There are a number of ways in which homeowners can save money on their home insurance. The two most popular ways to save money is to ask an insurance company about any discounts that a person might be entitled to and also to comparison shop. The discounts offered on a home insurance policy will include:
- Protective and security devices such as deadbolt locks, fire extinguishers, smoke detectors, sprinklers, burglar/fire alarms, and new plumbing/wiring.
- New homes will typically qualify for discounts, as the newer a home is the lower the risk.
- If the policyholder chooses to purchase a number of insurance policies with the same insurance company they are likely to be offered a discount. This may involve a person purchasing house, auto, and life insurance from the same company.
- Non-smokers will receive a discount, as many home insurance claims can be attributed to fires.
- Senior applicants aged over 55 will typically qualify for a discount.
As mentioned, consumers should also look to comparison shop to find the most competitive home insurance rates in Wisconsin. The easiest way to achieve this is to search through a price comparison website online. This will allow a consumer to input their basic details and then be offered a number of quotes from various insurance companies. Price comparison websites will typically also include the various features and benefits that these insurance companies offer, thus allowing a homeowner to make a choice based on their personal situation.
There are also a number of home insurance policies that a Wisconsin homeowner can apply for. These include:
- Broad form (HO-2) – this policy will offer coverage against specifically listed perils.
- Special form (HO-3) – this policy will offer property and liability coverage for a consumer’s home and other structures on their property. This policy will also cover more risks than an HO-2 policy and will protect against specifically listed risks such as fire, windstorm, hail, lightning and falling objects.
- Comprehensive form (HO-5) this policy will cover a consumer’s home and personal property for everything that is not specifically excluded. This policy will provide the broadest coverage, although it is far more expensive than the other two policies, and therefore not offered very often.
Wisconsin insurance companies also offer tenants form and condominium form insurance policies, as well modified coverage form which will provide coverage for older homes that have a replacement cost that far exceeds market value.