Understanding What Your Wisconsin Home Insurance Policy Doesn't Cover

About 37% of U.S. homeowners' insurance claims are denied, according to a 2023 report from Weiss Ratings. Many of these denials happen because the damage falls under an exclusion.

Homeowners often expect full coverage but don't realize the limits. Today, we're taking a closer look at the types of property damage claims that aren't covered under most Wisconsin home insurance policies, and why that matters.

The Basics of Wisconsin Home Insurance Coverage

Most homeowners in Wisconsin have a general idea of what their insurance covers. They expect it to help them after a fire, break-in, or storm. But coverage doesn't protect every situation.

There are three common parts of Wisconsin home insurance coverage:

• Protection for your home and belongings
• Liability coverage for injuries or damage to others
• Loss of use coverage if your home becomes unlivable

Protection for Your Home and Belongings

This part helps pay to repair or replace your house and the things inside it. If a fire damages your kitchen or a tree falls during a windstorm, the policy usually covers it.

It might include theft or vandalism too. But damage has to come from a covered event. If it's slow damage or regular wear, they might deny the claim.

Liability Coverage for Injuries or Damage to Others

If someone gets hurt on your property, this section helps with medical bills or legal costs. It may also help if you damage someone else's property.

Not every type of damage is covered, though. It may exclude certain dog breeds or trampoline injuries.

Loss of Use Coverage If Your Home Becomes Unlivable

If your house is so damaged that you can't stay there, this coverage can help pay for temporary housing. It only applies if the damage came from a peril covered in your policy.

Common Insurance Coverage Gaps in Wisconsin Policies

Many homeowners in Wisconsin don't find out about insurance coverage gaps until they try to file a claim. These gaps are parts of your policy where no protection exists.

Some risks are excluded from standard plans and require extra coverage. Others may be uninsurable altogether. Knowing about them ahead of time can help you avoid big repair bills.

There are five common areas where coverage gaps often show up:

• Flood damage is not covered by a standard home policy
• Earthquake damage is usually excluded
• Sewer backup may need added protection
• Wear and tear is not covered
• Most Policies leave out pest infestation
• Water damage that is groundwater related

Flood Damage Is Not Covered by a Standard Home Policy

Home insurance does not include flood damage. Even a small flood can cause major repairs. If your home is near a lake or low area, you might need a separate flood policy.

Earthquake Damage Is Usually Excluded

Wisconsin doesn't have many earthquakes, but they're not impossible. Home insurance plans usually leave out damage from earth movement. You can ask your agent about separate earthquake protection if you're concerned.

Sewer Backup May Need Added Protection

If your sewer backs up and causes damage, most base policies won't help. This type of damage often needs a special rider or endorsement. It's one of the most common types of uninsured property damage in older homes.

Wear and Tear Is Not Covered

Home insurance helps with sudden accidents, not problems that build over time. If your roof leaks after years of neglect or your pipes wear out, you'll likely be responsible for the cost. These issues are treated as maintenance problems, not emergencies.

Most Policies Leave Out Pest Infestations

Damage from rodents, insects, or termites is rarely included. These problems are considered preventable. Even large repairs from long-term infestations may not be covered.

Types of Property Damage Claims That Are Often Denied

Many people are surprised when their home insurance denies a claim. The reason often comes down to the type of damage and how it happened.

Just because something is broken doesn't mean it qualifies for coverage. Some issues fall into a gray area, while others are clearly excluded.

Several types of property damage claims are often denied:

• Mold and mildew from slow leaks
• Damage caused by negligence
• Foundation cracks from natural settling

Mold and Mildew From Slow Leaks

Mold is a common problem, but insurance doesn't always cover it. If the mold comes from a sudden pipe burst, the claim may be accepted.

If it builds up over time from a slow leak, it's usually denied. That's because you could have fixed the issue could earlier.

Damage Caused by Negligence

If you forget to fix a loose window and rain ruins your floor, your policy maybe not cover the damage. Insurance expects homeowners to take basic steps to protect their homes. If you ignore a problem and it causes damage, they might reject your the claim.

Foundation Cracks From Natural Settling

Homes shift and can lead to small cracks in walls or foundations. Insurance does not cover damage from normal wear or settling.

If the cracks aren't caused by a covered event like a storm or fire, the claim is usually denied.

Home Insurance Exclusions in Wisconsin

Home insurance doesn't cover all damage, and many policies have limits that catch people off guard. By learning which types of property damage claims are often excluded, you can avoid unexpected costs. A careful look at your policy now can help you stay protected when problems show up later.

At Miller Public Adjusters, our team is here to ensuring you receive every dollar owed through your homeowners or commercial insurance policy. We provide expert support from licensed public adjusters, estimators, and property specialists to handle your claim from start to finish. Trust us to advocate for you and secure a fair payout for property damage in Wisconsin.

Get in touch today to find out how we can help with your claim!

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