Buying Protection for Your Wisconsin Home

Being a resident in Wisconsin brings with it a special set of challenges that are not to be found in other parts of the country. As an area that is subject to flooding, blizzards, significant heat and humidity, ice, and even seismic activity on occasion, the resident in Wisconsin has to be prepared for just about every eventuality when it comes to insuring their dwelling.

Homeowner's insurance is protection for your dwelling in case you need to repair damage done to it or rebuild it if it is destroyed. Not having enough protection means that your provider will probably only pay for a small part of the cost of replacing items or repairing your house. Plans comes in three basic levels:

• Replacement cost: This pays for replacing damaged property and does not take into account depreciation in value. There is a limit to the maximum dollar amount that you may receive with this, however.
• Guaranteed Replacement Cost: This is similar to replacement cost, but it does not have a limit to it in most cases, meaning that if there is a sudden increase in the price of building materials you won't be left unable to complete repairs or the replacement of your home due to increased expenditures that exceed your insurance maximums. This is the most expensive type of policy and may not be available in your area.
• Actual Cash Value: The most common type of plan, this will take into account the current value of any item that is lost or stolen or destroyed in your house and offer you a payment or settlement that is equal to that current depreciated value regardless of whether or not it is sufficient to repair or repurchase the item at current market levels.

It is also important to keep in mind that standard policies do not provide protection for residents in the eventuality of damage due to natural flooding, either via rainstorm or if you live along the banks of a river or either of the Great Lakes that border the state. Flood damage is covered only if you add another special type of add-on to your policy that specifies that type of coverage. Normal policies do provide coverage if the flood is from an unnatural source such as a burst pipeline or faulty appliance within the dwelling.