Key Takeaways
- Wisconsin homeowners policies follow ISO standard forms with state-specific endorsements and regulations
- The Office of the Commissioner of Insurance (OCI) regulates all property insurance in Wisconsin
- Wisconsin requires insurers to acknowledge claims within 15 days and make payment decisions promptly
- Replacement cost coverage is standard for dwellings, with actual cash value available for personal property
- Flood insurance must be purchased separately through NFIP or private insurers as it is excluded from standard policies
Wisconsin Homeowners Insurance
Wisconsin homeowners insurance is regulated by the Office of the Commissioner of Insurance (OCI) and follows national ISO standards with state-specific modifications.
Standard Homeowners Policy Forms
HO-3 Special Form (Most Common in Wisconsin)
| Coverage | Type | Typical Limit |
|---|---|---|
| A - Dwelling | Open perils (special) | Replacement cost |
| B - Other Structures | Open perils | 10% of Coverage A |
| C - Personal Property | Named perils | 50-75% of Coverage A |
| D - Loss of Use | ALE coverage | 20-30% of Coverage A |
| E - Personal Liability | Occurrence basis | $100,000 - $500,000 |
| F - Medical Payments | No-fault | $1,000 - $5,000 |
Wisconsin-Specific Policy Requirements
Coverage A - Dwelling Coverage
- Must cover the dwelling at replacement cost value
- Covers the main structure, attached structures, and built-in appliances
- Wisconsin law allows guaranteed replacement cost endorsements
- Ordinance or law coverage available for building code upgrades
Coverage B - Other Structures
- Detached garages, sheds, fences, and other outbuildings
- Typically 10% of Coverage A but can be increased
- Subject to same perils as the dwelling
Coverage C - Personal Property
- Named perils coverage is standard
- Special limits apply to jewelry, firearms, cash, and collectibles
- Replacement cost endorsement recommended
- Off-premises coverage included (typically 10% of C)
Covered Perils in Wisconsin
Open Perils (Dwelling - Coverage A & B)
Covers all risks of direct physical loss except those specifically excluded.
Named Perils (Personal Property - Coverage C)
- Fire and lightning
- Windstorm and hail
- Explosion
- Riot and civil commotion
- Aircraft damage
- Vehicle damage
- Smoke
- Vandalism and malicious mischief
- Theft
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge of water or steam
- Sudden electrical damage
- Freezing
- Sudden tearing, cracking, or bulging
Common Exclusions in Wisconsin
| Exclusion | Reason |
|---|---|
| Flood | Requires separate NFIP or private policy |
| Earthquake | Available as endorsement |
| Mold | Limited coverage, endorsement available |
| Sewer Backup | Requires endorsement |
| Ordinance/Law | Requires endorsement for full coverage |
| Business Property | Limited to $2,500 on-premises |
Exam Tip: Wisconsin follows the ISO homeowners program but requires specific disclosures for certain exclusions. Flood damage is NEVER covered under a standard homeowners policy and requires separate insurance.
What is the most common homeowners policy form used in Wisconsin?
Wisconsin Claims Handling Requirements
OCI Claims Regulations
The Wisconsin Office of the Commissioner of Insurance enforces strict claims handling standards:
| Requirement | Timeframe |
|---|---|
| Acknowledge claim receipt | Within 15 days |
| Begin investigation | Within 30 days |
| Communicate claim status | Every 30 days |
| Payment after settlement | Promptly (no unreasonable delay) |
| Interest on delayed payments | Required if unreasonably delayed |
Unfair Claims Practices in Wisconsin
Wisconsin Statutes prohibit these practices:
- Misrepresenting policy provisions
- Failing to acknowledge communications promptly
- Failing to adopt reasonable investigation standards
- Refusing to pay claims without conducting reasonable investigation
- Not attempting fair settlement when liability is clear
- Compelling policyholders to sue to recover amounts due
- Lowball offers to force settlements
Policyholder Rights
Wisconsin policyholders have the right to:
- Receive a complete copy of their policy
- Understand all exclusions and limitations
- File complaints with the OCI
- Request appraisal for disputed claim amounts
- Receive interest on unreasonably delayed payments
Wisconsin Deductibles
Standard Deductibles
- Flat dollar amount ($500, $1,000, $2,500)
- Applied per occurrence, not per coverage
Percentage Deductibles
- Used for windstorm/hail in some areas
- Calculated as percentage of Coverage A
- Must be clearly disclosed to policyholder
Wind/Hail Considerations
- Separate wind/hail deductibles becoming more common
- Wisconsin experiences severe weather events
- Higher deductibles reduce premiums significantly
Exam Tip: Wisconsin insurers must pay interest on claims payments that are unreasonably delayed. Know the OCI's claims handling timeline requirements.
Within how many days must Wisconsin insurers acknowledge receipt of a homeowners insurance claim?
Which of the following is NOT covered under a standard Wisconsin homeowners policy?