September 9, 2025
Explore how Wisconsin's severe weather and rising costs impact home insurance, and what coverage options homeowners need to stay protected.
Wisconsin homeowners face a unique set of challenges when it comes to protecting their most valuable investment. The Badger State's diverse climate and seasonal weather patterns create multiple risk factors that directly impact insurance premiums and coverage needs. In Wisconsin, homeowners with poor credit face an average cost of $2,777 for coverage, $1,605 more than the overall state average, highlighting the importance of understanding all factors that influence rates.
Wisconsin's annual premium for homeowners insurance with $250K Dwelling / $125K Personal Property / $200K Liability coverage is $1,172. This amount is less than the national average of $2,423, making it one of the more affordable states for home insurance. However, this affordability comes with the caveat that Wisconsin homeowners have seen a sharp rise in their home insurance prices in recent years, jumping 12.3% in 2023 and 15.5% in 2024.
The state's insurance market remains competitive with over 30 carriers offering coverage, though some insurers have become more selective about the risks they accept. Auto-Owners, State Farm, American Family, Farmers, and Allstate are frequently recognized by independent rating services as top options for Wisconsin homeowners based on factors such as claims satisfaction, financial strength, and pricing according to 2024-2025 industry analysis.
Wisconsin's geography places it at the intersection of multiple weather systems, creating a perfect storm of seasonal risks that insurance companies must price into their policies.
The state experiences significant severe weather activity, particularly during spring and summer months. From 1980-2024, there were 63 confirmed weather disasters with losses exceeding $1 billion each to affect Wisconsin. These events included 9 drought events, 5 flooding events, 1 freeze event, 44 severe storm events, and 4 winter storm events. This frequency of billion-dollar disasters has increased dramatically, with the annual average for the most recent 5 years (2020-2024) being 5.0 events compared to the 1980-2024 annual average of 1.4 events.
Hailstorms present particularly costly challenges for Wisconsin homeowners. Insurance companies have been raising their rates as the cost of extreme weather disasters grows, with hail damage often affecting much larger geographical areas than tornado damage. The impact on roofing and siding can be extensive, with many claims reaching into the tens of thousands of dollars.
Wisconsin's harsh winters create unique insurance challenges that many other states don't face. Ice dams form when snow melts and refreezes at roof edges, potentially causing water damage to interior spaces. Additionally, the extreme cold can cause pipes to freeze and burst, leading to significant water damage claims.
Southern and western Wisconsin fall within areas prone to tornado activity. Large tornado outbreaks are becoming more common, though the state doesn't experience the same frequency as traditional "Tornado Alley" states. However, when tornadoes do occur, they can cause catastrophic damage to individual properties.
Flood damage is not covered by most home insurance policies, making this a critical gap for Wisconsin homeowners to address. Heavy rainfall, snowmelt, and river overflow, particularly along the Mississippi and Wisconsin Rivers, create flood risks that require separate National Flood Insurance Program coverage or private flood insurance policies.
Given the state's unique risk profile, certain coverage endorsements become particularly valuable:
Water Backup and Sump Overflow Coverage: With most Wisconsin homes having basements, this endorsement protects against water damage from failed sump pumps or sewer backups, which are common issues during heavy rainfall events.
Ordinance or Law Coverage: Older homes in cities like Milwaukee and Green Bay may need to be rebuilt to current building codes after a covered loss, making this coverage essential for properties built before modern building standards.
Service Line Coverage: Wisconsin's aging utility infrastructure makes coverage for water, sewer, gas, and electrical lines increasingly valuable.
Extended Replacement Cost: With construction costs rising significantly post-pandemic, this coverage ensures adequate funds for rebuilding.
Equipment Breakdown Coverage: Protects HVAC systems, water heaters, and other equipment that may fail due to power surges or mechanical breakdown.
For mortgage servicers and financial institutions supporting Wisconsin homeowners, managing insurance-related customer inquiries efficiently while ensuring proper coverage becomes crucial. Partnering with Covered may help reduce operational complexity and support improved customer interactions, based on partner feedback. Covered provides insurance guidance to help customers explore coverage options and navigate the insurance marketplace. Cost outcomes will vary based on individual policyholder circumstances, and actual results may vary.
Understanding how Wisconsin's rates compare to neighboring states provides valuable context for both consumers and industry professionals:
Premium ranges reflect different coverage amounts and methodologies from various sources
Based on publicly available premium data from multiple industry sources, Wisconsin's average home insurance rates remain lower than many neighboring states, though all states in the region are experiencing significant upward pressure on premiums due to increased severe weather activity and rising construction costs.
Several factors are reshaping Wisconsin's home insurance landscape:
Climate Change Impact: Climate change is causing more extreme weather that damages and destroys property, with Wisconsin experiencing more frequent and severe storms than historical averages suggest.
Construction Cost Inflation: Post-pandemic supply chain issues and labor shortages continue to drive up rebuild costs, forcing insurers to adjust coverage limits and premiums accordingly.
Technology Integration: Insurance companies are increasingly using satellite imagery, weather modeling, and predictive analytics to better assess risks and price policies more accurately.
Regulatory Environment: Wisconsin's regulatory approach remains business-friendly while maintaining consumer protections, helping to keep the market competitive.
Wisconsin's home insurance market offers relative affordability compared to national averages and many neighboring states based on available premium data, but this advantage is eroding as climate-related risks intensify. The state's unique combination of severe weather risks, from hailstorms to winter freeze damage, requires thoughtful coverage planning and regular policy reviews.
Homeowners who understand their risk profile, maintain their properties well, and work with knowledgeable insurance professionals will be best positioned to navigate rising costs while maintaining adequate protection. The key is staying proactive rather than reactive in insurance planning, especially as weather patterns continue evolving throughout the region.
For those in the mortgage and financial services industry, partnering with specialized insurance services like Covered may help ensure customers receive guidance while potentially reducing operational complexity, which is a consideration as the insurance landscape becomes increasingly complex.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
