It doesn’t matter if you’re a first-time homeowner trying to figure out what type of insurance coverage to purchase, or a long-time insuree unsure about an upcoming policy renewal—homeowners insurance is complicated, and often leaves you with more questions than answers.
However, just because it’s confusing doesn’t mean you should stick your head in the sand and hope for the best. Refusing to understand the ins and outs of your policy can result in you not getting properly compensated in the event you have to file a claim. To better understand your policy, check out the ten most frequently asked questions Wisconsin homeowners have about property insurance and the claims process.
Most Asked Questions About Homeowners Insurance
1. What types of damage are covered by homeowners’ insurance?
Homeowners insurance typically includes a variety of “covered perils”, which are specific types of events that can cause damage to your property. Most commonly included in homeowners’ policies are damage caused by fire, wind, hail, lightning, theft, and vandalism.
However, you should still take the time to review your specific policy, as coverage can vary. For example, damage caused by flooding or earthquakes is not typically included in standard homeowners policies, and may require the purchase of a separate policy or “endorsements” (modifications to an insurance policy to change its coverage terms and conditions). It’s also important to note that property damage caused by negligence is not covered.
2. How much coverage do I need on my house? Does this include detached structures (garage, workshop, etc.)
To determine the coverage you want for your home, it’s important to consider how much it would cost to rebuild your house if it were completely destroyed in the event of a total loss. (You may also want to consider loss of personal property.)
A home is declared a total loss by your insurance company if the cost of repairing the damaged property exceeds the property’s value. This coverage takes into account factors such as the home’s size, construction type, and location. Depending on your assets and risk level, you may want to consider covering your home for $300,000 to $500,000, although most policies offer a minimum of $100,000.
Separate structures like garages and workshops are usually covered under “Other Structures Coverage,” which is often around 10% of your dwelling coverage. If you have multiple detached structures on your property, it’s crucial to confirm this with your insurance provider to ensure that all structures are properly covered.
3. How do I file an insurance claim?
If you need to file an insurance claim, don’t panic. In order to get the settlement you deserve, it’s important to stay calm and follow these steps:
- Document the damage: Take photos and videos of the damage to your property. Make a list of damaged items, including their approximate value and purchase date.
- Contact your insurance company: Notify your insurance company as soon as possible so they can begin the claim process.
- Complete claim forms: Fill out any required forms provided by your insurer.
- Meet with an adjuster: An adjuster will likely be sent by your insurance company to visit your property to assess the damage.
- Get repair estimates: Obtain estimates from contractors for the cost of repairs.
- Submit documentation: Provide all necessary documentation to your insurer.
- Consider a public adjuster: If you feel as though your insurance company isn’t offering you enough money, consider hiring a public adjuster to contest it.
It’s important to be thorough and timely while completing these steps, because insufficient documentation or late filing will give your insurance company reason to deny your claim. For more information regarding the process of filing an insurance claim, check out our “Residential Property Claim Guide”.
4. How long does the claims process take?
The length of the claims process can vary depending on the type of claim being filed, the complexity of the claim, and the circumstances that caused the damage. It can also depend on how promptly both the homeowner and the insurance company respond. (Wisconsin state law mandates that insurance companies must at least respond to the claim within 10 to 30 days.)
Typically, this means that simple claims may be settled within a few weeks, whereas more complicated claims might take several months.
5. What if my claim is denied?
If your claim is denied, you can always try to appeal the decision. First, review the denial letter to understand the reasons for the denial. Then, gather additional documentation or evidence to support your claim and submit an appeal to your insurance company. In this instance, it might be helpful to hire a public adjuster, as they can offer a different perspective and may uncover details that were overlooked initially.
If you feel the issue needs to be escalated further, you can also file a complaint with your State Insurance Department. When you file a complaint, the department will typically investigate the complaint to determine whether the insurance company has violated any state laws or regulations.
6. Will my insurance rates go up after filing a claim?
Filing a claim can sometimes lead to an increase in your insurance premiums. The impact on your rates depends on several factors, including the type of claim, your claims history, and your insurance company’s policies. That’s why it’s important to weigh the cost of repairs against the potential increase in premiums before deciding to file a claim. If the damages are small and easy to handle on your own, you may want to consider leaving your insurance out of it.
7. What is the difference between actual cash value and replacement cost value?
When it comes to insuring your property and belongings, there are two main types of coverage available: actual cash value (ACV insurance) and replacement cost value (RCV insurance). It’s important to understand which type your policy has and what it means.
- Actual Cash Value (ACV): This is the amount an insurance company would reimburse you for a damaged or lost item if you were to sell it in its current condition. It reflects the item’s market value at the time of loss.
- Replacement Cost Value (RCV): This is the amount it would cost to replace your property or belongings with new items of a similar kind and quality, without factoring in depreciation. Most homeowners prefer policies that offer RCV coverage, as it provides more comprehensive protection.
8. Do I need a public adjuster?
Public adjusters are independent insurance professionals who work on behalf of you, the policyholder, not the insurance company. (This means they always have your best interests in mind.) They can help you prepare and file your claim, negotiate with the insurance company, and ensure you receive a fair settlement.
If you feel like you’re not getting what you deserve from your insurance company, it may be worth getting a public adjuster involved. At Fortitude Public Adjusters, for example, we’ve found that our customers typically get a settlement that is 30% larger than if they try to handle the property insurance claim themselves.
9. What should I do if my home is uninhabitable after a loss?
If your home is uninhabitable due to covered damage, your homeowner’s insurance policy may include additional living expenses (ALE) coverage. ALE covers the cost of temporary housing, meals, and other necessary expenses while your home is being repaired. Just be sure to keep all receipts and documentation of these expenses to submit with your claim.
10. How can I prevent damage and reduce the risk of future claims?
Preventing damage and minimizing the risk of future insurance claims are crucial steps to keep your premiums stable and ensure the safety of your home. Here are some comprehensive tips to help you protect your investment:
Maintain Your Home
- Conduct regular inspections: Conduct regular inspections of your roof, gutters, plumbing, and electrical systems. Look for signs of wear and tear, leaks, or potential hazards that might require immediate attention.
- Make timely repairs: Address any issues promptly to prevent them from escalating into larger problems. For instance, a small roof leak can lead to extensive water damage if not repaired quickly.
Install Safety Features
- Install smoke detectors: Install smoke detectors on every level of your home and inside each bedroom. Test them monthly and replace the batteries at least once a year.
- Consider security systems: Consider investing in a comprehensive security system that includes alarms, cameras, and motion sensors. Modern systems can also provide remote monitoring and alerts.
- Install storm shutters: In areas prone to severe weather, installing storm shutters can protect your windows from damage caused by high winds and flying debris.
Prepare for Severe Weather
- Secure outdoor items: Before a storm, secure or bring indoors any outdoor furniture, decorations, or equipment that could become airborne and cause damage.
- Perform tree maintenance: Regularly trim trees and remove dead branches that could fall during a storm and cause damage to your home or property.
- Create an emergency plan: Develop and practice an emergency plan with your family. Ensure everyone knows the safest places to take shelter and how to evacuate if necessary. Keep an emergency kit with essential supplies like water, non-perishable food, flashlights, and first-aid materials.
By taking these proactive measures, you can significantly reduce the likelihood of damage to your home and maintain lower insurance premiums. Remember, a well-maintained and secure home is not only safer but also more cost-effective in the long run.
Looking For More Help With Your Property Insurance Claim?
If you are struggling with a property insurance claim and need expert assistance, consider hiring Fortitude Public Adjusters. We have the experience and knowledge to ensure you receive the compensation you deserve. Don’t navigate the complex world of insurance claims alone—reach out to Fortitude Public Adjusters today!
