Wisconsin State Specific Guide
| Wisconsin Overview |
| Time Zone | Underwriting, Cancellation and Non-Renewal Periods |
| Central Time Zone | The state’s new policy underwriting period is 60 days. Non-Renewal: 60 days Cancellation: 10 days |
| Prorate or Short-Rate Cancellation (Mid-Term) | Premium Increase Notices |
| Per Statue 48.18.300, when the Insured requests the cancellation, the cancellation will be short rated. When the insurer requests the cancelation, it will be prorated. | The insurer should give the customer a 60-day notice of a policy increase. If the notice is given less than 60 days before the renewal date, the new terms or premium increase will not become effective until 60 days have elapsed from the date the notice is given. These conditions do not apply if the only change is a rate increase of less than 25%. |
| Homeowners Line of Business |
| Special State-Specific Considerations | Over and Under Insurance |
| For roof collapse due to weight of snow or ice, a standard home insurance policy would cover damage caused by the weight of ice, snow or sleet; with necessary maintenance. | Per statue 632.07, a lender may not require a borrower, as a condition of receiving or maintaining a loan secured by real property, to insure the property against risks to improvements on the real property in an amount that exceeds the replacement value or market value of the improvements, whichever is greater. |
| Mortgagee-Bill Grace Period | State-Specific Homeowners Documents and Discounts |
| Lenders are required by law to make escrow account disbursements in a timely manner, on or before the due date to avoid a penalty. | None |
| Valued Policy State or Non-Valued Policy State | Unique Home Construction |
| Per statue 632.05, under Wisconsin law, an insurer may agree to replace destroyed property with new material of like size, kind and quality. The value of any insured real property, occupied as a dwelling, which is destroyed, is determined by the value in the insurance policy. | Many homes in Wisconsin have basements, this is something to consider when discussing lowest floor level for Flood policies. |
| Residual Plans | Deductibles |
| Wisconsin FAIR Plan Wisconsin Insurance Plan offers 3 basic policy lines to applicants who have had their coverage cancelled or who have been denied property insurance in the standard insurance market: Homeowners, Dwelling, and Commercial lines. |
Commonly has the normal standard flat-fee deductible. |
| Auto Line of Business |
| Special State-Specific Considerations | Unique State Coverages and Laws |
| In Wisconsin, consumer credit information may be requested by an insurer when writing new or renewal of policies. Some insurance companies believe certain credit information may be an indicator of frequency and severity of future claims. | Fault Accident State Wisconsin follows a traditional fault-based system when it comes to financial responsibility for losses stemming from a crash: that includes car accident injuries, lost income, vehicle damage, etc. The person who was at fault for causing the car accident is also responsible for any resulting harm (from a practical standpoint, the at-fault driver’s insurance carrier will absorb these losses, up to policy limits). Safety Responsibility Law Wisconsin has a Safety Responsibility Law to protect persons who suffer damages in accidents caused by uninsured motorists who do not pay for damages or injuries they cause. The law requires any time a person is hurt or killed, or property damage exceeds $1,000, the accident must be reported as soon as possible. You must file a Driver's Report of Accident within 10 days with the Division of Motor Vehicles (DMV). If a police agency investigates the accident, the police will file this report for you. Comparative Negligence Law Wisconsin has a comparative negligence law, which means responsibility is frequently shared. The comparative negligence law is based on a percentage of negligence. This means you may recover damages from another party only if your negligence is not greater than the other party. Recovery for your damages will be reduced by the percent of negligence attributed to you. You are barred from recovery if your negligence is greater than another party’s negligence. |
| Required State Limits | Special Automobile Insurance Policies |
| 10/25/50 | Wisconsin Automobile Insurance Plan Provides automobile insurance to risks who could not be placed in the voluntary market. |
| Financial Responsibility | State-Specific Auto Documents, Discounts and Fees |
| If required to have a SR22, the Insured is required to maintain state required limits for up to 3 years. | None |
| Stacking of UM Coverages | Suspension Period |
| Stacking is allowed, but insurer may limit coverage to 3 vehicles. | According to Wisconsin Statutes section 344.65, anyone who operates a vehicle that is uninsured may be ordered to pay a fine of up to $500. Other administrative penalties are also possible, including suspension of vehicle registration and/or your driver's license. There is no grace period. |