Wisconsin's insurance regulator is the Office of the Commissioner of Insurance (OCI). Its consumer guide to homeowners insurance was revised in July 2026, and most of this page comes from it.(OCI PI-015) We don't name insurers or quote prices.
What a Homeowners Policy Covers
Wisconsin law doesn't require homeowners insurance, but most mortgage lenders do, for at least the loan balance. You can pick your own insurer, not just the one your lender suggests.(OCI)
A policy is a package. The usual pieces, as OCI describes them:(OCI PI-015)
| Coverage | What it pays for | Usual amount |
|---|---|---|
| Dwelling | The house | The limit on your declarations page |
| Other structures | Detached garage, shed | 10% of the dwelling amount |
| Personal property | Your belongings, at actual cash value unless you bought replacement cost | 50% of the dwelling amount |
| Additional living expenses | Living elsewhere after a covered loss | Up to 20% of the dwelling amount |
| Personal liability | Non-auto accidents you, your family or your pet cause; no deductible | $100,000 per occurrence, more available |
| Medical payments | Guests hurt at your home, regardless of fault | Generally $1,000 per person |
- Policy forms. HO-2 covers a named list of perils, including fire, wind and hail, theft, freezing pipes, the weight of ice and snow, and water from plumbing. HO-3 covers the house against any peril that isn't excluded. HO-4 is for renters and HO-6 for condo owners.(OCI PI-015)
- Insure the rebuild cost, not the market value. Market value includes the land, which a homeowners policy doesn't insure.(OCI) To get full replacement cost, the house usually must be insured for 80% to 90% of its replacement cost. Below that, the insurer doesn't have to pay the full loss, even a small one.(OCI PI-015)
- Replacement cost or actual cash value. Replacement cost pays to rebuild with similar materials. Actual cash value is replacement cost minus depreciation.(OCI PI-015)
- Code upgrades. Most policies don't pay to bring a house up to current code when you rebuild, unless you have a building code (ordinance or law) endorsement.(OCI PI-084) In an older house, that's worth asking about.
- Common exclusions: flood and surface water, sewer and drain backup, earth movement, neglect, war, nuclear hazard and power failure.(OCI PI-015) A roof that's simply worn out, with no covered damage, is the owner's to replace.(OCI)
- Vacancy. An insurer can cancel if the home sits vacant more than 60 days, and some coverages, like vandalism, may be suspended.(OCI)
- Short-term rentals. Coverage for paying guests may not apply, because it can count as commercial use. Ask about an endorsement or a landlord policy.(OCI PI-015)
- Make a home inventory. Go room by room, photograph or video your things, keep receipts, and store copies away from home. OCI has an inventory form at oci.wi.gov/Inventory.(OCI PI-015)
- Don't let it lapse. If your coverage lapses, your lender can buy a policy that protects itself and add the cost to your mortgage. It's usually much more expensive.(OCI PI-015)
Sewer Backup: Ask for the Endorsement
Sewage coming up through a floor drain is one of the most common basement losses, and a standard policy won't pay for it. OCI says sewer and sump pump backups aren't covered by a homeowners policy, and probably not by flood insurance either. Most insurers sell a sewer backup endorsement, but you may not be offered it unless you ask.(OCI PI-015) NFIP flood insurance covers sewer backup or sump overflow only when it's a direct result of flooding.(OCI PI-084)
- Ask about each one separately. The City of Madison lists sump pump insurance and sanitary backup insurance as separate types of coverage. Service line coverage pays to fix your sewer pipe, not the water damage.(City of Madison)
- You own the lateral. In Madison, the homeowner owns and maintains the private sewer lateral from the house to the public main.(City of Madison) Who owns which part of the sewer line, by town.
- If it happens in Madison: stop using water and call the City's 24-hour Engineering Operations line, 608-266-4430. Call your insurer if you have backup coverage. City crews don't clean inside homes; you can file a claim with the City through its Risk Management office.(City of Madison)
- Backwater valves. Madison's Backwater Valve Program reimburses 75% of the installation cost, up to $1,500, for 1- and 2-unit homes built more than five years ago that don't already have one. You need three quotes and a Wisconsin licensed plumber with a City permit. Call City Engineering, 608-266-4751.(City of Madison) The City calls it a pilot, so confirm it's still taking applications. Valves can stick open from lint or debris unless checked at least twice a year.(City of Madison)
- Sump pumps discharge clear groundwater, which must go outside or to the storm sewer, not into a floor drain or the sanitary sewer.(City of Madison)
Flood Insurance
Most homeowners insurance doesn't cover flood damage.(FEMA) You can buy National Flood Insurance Program (NFIP) coverage if your community participates, through the agent who sells your home or auto insurance. Private flood insurance is also sold.(OCI PI-015) The City of Madison notes flood insurance can cover many kinds of flooding even outside a FEMA floodplain.(City of Madison) About one in four NFIP claims come from low- to moderate-risk areas.(OCI PI-084)
- The 30-day wait. An NFIP policy typically takes 30 days to start.(FEMA) There's no wait when you buy it with a new, increased or renewed loan, and a one-day wait within 13 months after a flood map revision. Buying as a flood approaches usually won't help.(OCI)
- Limits. Up to $250,000 for the building and $100,000 for contents on a home.(FloodSmart)
- What "flood" means. A general, temporary inundation of two or more acres or two or more properties, one of them yours.(FloodSmart) Normal rain runoff and isolated basement seepage without general flooding aren't covered.(OCI PI-084)
- Basements. NFIP doesn't cover basement improvements such as finished walls, floors and ceilings, or belongings kept in a basement.(OCI PI-084) Building coverage does include items like foundation walls, staircases, built-in appliances, fuel tanks and well pumps.(FloodSmart)
- Rates. NFIP prices each home on flood frequency, flood types, distance to water, elevation and rebuild cost. By law, most NFIP rates can't rise more than 18% a year.(FEMA)
- Rebuilding to code. Increased Cost of Compliance can pay up to $30,000 toward elevating, moving, demolishing or floodproofing after a flood, when the community declares the building substantially damaged.(FEMA)
- Community discounts. Communities in FEMA's Community Rating System get NFIP discounts of 5% to 45%.(FEMA) FEMA's October 2026 list shows no rating for the City of Madison; in Dane County it lists the Village of Mazomanie at Class 8, a 10% discount.(FEMA)
- Mortgages. Lenders must require flood insurance on federally backed mortgages for buildings in high-risk flood zones.(OCI PI-084) Look up your address on FEMA's flood map or in Dane County's maps. Flooding and lake levels covers local flood history.
- Disaster aid isn't a substitute. Federal disaster assistance is mostly loans, available only after a presidential declaration.(OCI PI-084)
Filing a Claim, Step by Step
- Stop more damage. You have a legal duty to make reasonable temporary repairs, like boarding a broken window. Keep the receipts; temporary repairs are covered. Permanent repairs wait until the adjuster has seen the damage.(OCI PI-015)
- Call your agent or insurer promptly with your policy number, and ask what documents and forms they need. Report a theft to the police right away.(OCI PI-015)
- Document it. List damaged items, take photos, and collect receipts or records showing price, age, brand and model. Don't throw out damaged expensive items until the adjuster sees them.(OCI PI-084)
- Proof of loss and the adjuster. The claim may start with a proof of loss form or an adjuster visit.(OCI PI-084) For an NFIP flood claim, OCI says the proof of loss is due within 60 days.(OCI PI-084)
- Get written, line-by-line bids from licensed contractors, and keep copies of everything you send and receive.(OCI PI-084) How to check a contractor's Wisconsin credential.
- Living elsewhere? Keep receipts for extra living costs. The insurer can advance money for urgent replacements.(OCI PI-084)
- Replacement cost is paid in two steps. The insurer pays actual cash value first, then the rest after you repair or replace and send receipts. Policies set a deadline to replace; ask for an extension in writing. If you don't repair, you get only actual cash value.(OCI PI-084)
The 30-day rule. A Wisconsin claim is overdue if it isn't paid within 30 days after the insurer gets written notice of the covered loss and its amount. Overdue payments earn 7.5% simple interest a year.(Wis. Stat. 628.46) OCI reminded insurers of this in October 2025.(OCI bulletin)
Storm damage. Roofers can't promise to cover your deductible or negotiate your claim for you. The storm chaser rules and roofing and hail guide cover what to do after hail or wind.
If You Disagree with the Insurer
- Appraisal. If you think the offer is unfair, you can ask for an appraisal by appraisers who don't work for your insurer, complain to OCI, or hire a lawyer.(OCI PI-015)
- Unfair claim practices. Wisconsin's rule Ins 6.11 lists practices that are unfair when done as a general business practice, including not acknowledging claim communications promptly (within 10 days), not investigating with reasonable speed, not explaining a denial on request, and not settling in good faith when liability is reasonably clear. Knowingly misrepresenting facts or policy terms is unfair even once.(Ins 6.11)
- Time limit to sue. Wisconsin law gives 12 months after the loss to sue on a fire insurance policy, including endorsements covering property loss from any cause. A policy can't shorten that. You generally can't sue to compel payment until 60 days after proof of loss.(Wis. Stat. 631.83) Read your policy's own suit clause, and talk to a lawyer well before a year passes.
- Public adjusters. A public adjuster works for you, for a fee. Wisconsin regulates them under ch. 629: you can void the contract within 5 business days, and in a declared disaster the fee can't exceed 10% of your recovery. They can't demand payment before you're paid or settle without your written consent.(Wis. Stat. ch. 629) Out-of-state public adjusters must register with OCI; Wisconsin residents may but don't have to.(OCI)
- Claims history. Insurers check C.L.U.E., a database of property claims that includes claims you asked about, paid or not. You can get one free report every 12 months (1-866-312-8076) and dispute errors.(OCI)
Cancellation and Nonrenewal
- New policies. In its first 60 days, a new policy can be cancelled for any reason with at least 10 days' written notice.(Wis. Stat. 631.36)
- After that, a midterm cancellation is allowed only for nonpayment or grounds in the policy, such as material misrepresentation or a substantial change in the risk, with at least 10 days' notice.(Wis. Stat. 631.36)
- Nonrenewal needs notice at least 60 days before the policy expires. Worse terms or a higher premium at renewal need 45 days' notice, unless the only change is a general rate increase under 25%.(Wis. Stat. 631.36)
- Notices must give the reason and explain how to apply to the Wisconsin Insurance Plan, or they aren't effective (except for nonpayment).(Wis. Stat. 631.36)
- No grace period. If the notice says nonpayment cancels the policy, it ends on the due date.(OCI)
Complaining to OCI
- Try the company or agent first, and keep a log of calls: number, name, date and what was said.(OCI)
- File online at oci.wi.gov/complaints, or call 1-800-236-8517 (608-266-0103 from outside Wisconsin), or email ocicomplaints@wisconsin.gov. Send copies, not originals. Use the exact company name from your policy.(OCI)(OCI PI-015) OCI's mailing address is P.O. Box 7873, Madison, WI 53707-7873.(OCI)
- OCI sends the complaint to the company, which has 20 days plus mailing time to respond. Expect to hear back in about 25 days.(OCI)
What OCI can't do: act as your lawyer, decide fault, settle disputed facts, value your claim, or order a company to pay if it followed the law and your policy. For claim disputes of $10,000 or less, small claims court is an option.(OCI) Dane County small claims court covers the filing steps. If OCI finds a violation, it can fine the company or suspend or revoke licenses.(OCI PI-015)
Shopping for a Policy
- Compare like with like: the same deductibles and coverage levels. Weigh claim service, renewability and financial strength, not just price.(OCI PI-015)
- Check the company is licensed in Wisconsin with OCI's lookup. Buying from an unlicensed insurer means no Wisconsin Insurance Security Fund protection if it fails.(OCI)(OCI PI-015)
- Credit. Most insurers use credit information to price homeowners policies.(OCI) If credit leads to a higher price or a denial, the insurer must tell you and name the credit bureau.(OCI)
- A higher deductible will likely lower your premium.(OCI)
- Can't get coverage? The Wisconsin Insurance Plan is the state's FAIR plan, a pool shared by all property insurers for owners who can't get coverage elsewhere. You apply with proof of one rejection; it pays actual cash value, never replacement cost, and can't renew after four years.(OCI PI-015)(WIP)
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Questions
Does homeowners insurance cover a sewer backup?
Not usually. OCI says sewer and sump pump backups aren't covered by a homeowners policy, and probably not by flood insurance either. Most insurers sell a sewer backup endorsement, but you may not be offered it unless you ask.
Does homeowners insurance cover flooding?
No. Flood is excluded from homeowners policies. Flood insurance is a separate policy, from the National Flood Insurance Program or a private insurer, and an NFIP policy usually takes 30 days to start.
How long does an insurer have to pay a claim in Wisconsin?
Under Wis. Stat. 628.46, a claim is overdue if it isn't paid within 30 days after the insurer gets written notice of the covered loss and its amount. Overdue payments earn 7.5% simple interest a year.
Where do I complain about an insurance company in Wisconsin?
First with the company. If that doesn't work, file with the Office of the Commissioner of Insurance (OCI) at oci.wi.gov/complaints, by phone at 1-800-236-8517, or by email at ocicomplaints@wisconsin.gov.
Can my insurer drop me?
In the first 60 days of a new policy, it can cancel for any reason with 10 days' written notice. After that, a midterm cancellation needs a reason allowed by law, such as nonpayment. Not renewing needs at least 60 days' notice before the policy ends.