Homeowners insurance is more than just a policy — it’s a way to balance risk and financial security.  
 
As extreme weather patterns shift, the conversation around deductible options and coverage percentages has become increasingly important. 
 
Todd Glover and Sarah Musial of Todd Glover’s State Farm Agency in Manitowoc and Cedar Grove discuss deductible options and coverage percentages on the latest episode of At Home on the Lakeshore with UnitedOne Credit Union’s Local Home Loan Experts. 

The views and opinions expressed by the homeowners insurance agents quoted in this article are their own and do not constitute an endorsement by UnitedOne Credit Union. You are encouraged to evaluate your own individual needs and seek guidance from insurance professionals before making any decisions.

Historically, deductible amounts were fixed, meaning homeowners paid a set dollar amount when filing a claim. However, as property values rise and catastrophic weather events become more common, insurers have moved toward percent-based deductibles to help manage costs. 

“This is a trend that's been around a long time in catastrophe-prone areas,” Glover said. “Think about your Texas, your Florida areas like that, and the concept is to share the risk between the homeowner and the insurance company.” 

While this approach has long been used in high-risk states, severe storms — including wind and hail — are now affecting areas like Wisconsin. These events result in multi-million-dollar damages annually, making percent-based deductibles a financial necessity for insurance companies to remain viable. 

“Used to be that severe convective storms were an Oklahoma thing, a Kansas thing, a Texas thing. And now that's a Wisconsin thing,” Glover said. 

A percent-based deductible is calculated based on your home’s insured value. For example, if your home is insured for $300,000 and you have a 1% deductible, your out-of-pocket expense for a claim would be $3,000. 

Choosing lower deductible percentages — such as 0.5% or 1% instead of 2% or 3% — can make a substantial difference in affordability when disaster strikes. 

“Having the ability to do a half a percent or 1% deductible versus a mandatory two or three or higher is a big deal,” Glover said. 

Beyond structural damage, homeowners insurance includes liability protection — a critical safeguard against potential lawsuits. 

Musial describes an umbrella policy as “additional liability that extends over everything you have with us or not with us. If you were to cause a bad accident — either at your home, away from your home, in your vehicle — that is meant to protect your assets.” 

This type of coverage ensures financial protection in high-cost claims, such as dog bites, pool accidents, or unexpected lawsuits.

Insurance premiums are influenced by various factors, including weather trends, rising material costs, and claim frequency. Glover emphasized his agency’s insurance rates in Wisconsin are based on Wisconsin claims — not external factors from states like Florida or California. 

One practical way to reduce premiums is through bundling policies, such as combining homeowners, auto, and life insurance under one provider. 

“Protecting everything is going to save you money because it's going to give you more discounts altogether on the whole entire package,” Musial said. 

Additionally, avoiding small claims — where repair costs are close to your deductible — can prevent unnecessary rate increases. 

Some insurance companies offer preventative services, such as Ting, a monitoring system that detects electrical faults before they cause fires. 

“Last year, Ting helped prevent almost 20,000 fires,” Glover said. “We want to be there to help you recover from the unexpected, but we’d much rather your house never burn down in the first place.” 

Navigating homeowners insurance requires understanding deductible structures, liability coverage, and strategies to reduce costs. Choosing appropriate deductibles, bundling policies, and leveraging preventative services can safeguard both your finances and your home. 

As severe storms become more frequent, staying informed empowers homeowners to make smarter decisions about protecting their most valuable asset. 

When it comes to home loans, it’s best to discuss your situation and options prior to putting in an offer on a house. The Local Home Loan Experts at UnitedOne Credit Union will help you navigate the process and are your trusted source in Manitowoc and Sheboygan for all your home loan needs. 

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