As we move further into 2026, the insurance marketplace across Wisconsin and the Upper Midwest continues to adjust following several years of significant storm activity. The storms of 2023, 2024, and 2025 left a lasting impact on carriers operating in our region, prompting important changes to how property coverage is structured.
If you haven’t reviewed your homeowners policy recently, there’s a strong chance your coverage has been affected by these updates. Below is a breakdown of what changed, how it impacts policyholders in Wisconsin, and what we expect heading into the rest of 2026.
Over the past three years, nearly every insurance carrier has modified how wind and hail claims are handled. These adjustments were largely driven by evolving relationships between insurance companies and their reinsurance partners.
Reinsurance is coverage that insurance companies purchase to protect themselves from catastrophic storm losses. As large weather events increased across the Upper Midwest, reinsurance retentions (the amount a carrier must pay before reinsurance responds) increased significantly. In some cases, per-storm retentions rose from approximately $20 million in 2023 to $70–80 million entering 2026.
As a result, carriers needed to redesign coverage structures to remain competitive while managing storm-related exposure.
Most carriers implemented one — and often two — of the following changes:
Instead of a standard $1,000 deductible applying to all claims, many policies now include a higher deductible specifically for wind and hail losses.
These deductibles may be:
In some cases, deductible amounts increase as a roof ages.
For Wisconsin homeowners, this means greater out-of-pocket participation if a wind or hail claim occurs.
Historically, most homeowners policies were written on a replacement cost (RC) basis. If wind or hail damaged your roof or siding, the expectation was full replacement (minus deductible).
Many carriers now use actual cash value (ACV) for roof claims.
ACV accounts for depreciation. As a roof ages, the payout decreases accordingly. For older roofs, this can significantly impact how much the insurance company contributes toward replacement.
Some carriers implemented structured roof schedules.
Under this model, reimbursement decreases as the roof ages. For example:
By now, most carriers operating in Wisconsin have implemented at least one of these changes — and many use a combination.
For many policyholders, these structural changes have helped create more stability in the marketplace. As carriers increased claim participation for wind and hail losses, overall pricing began to level out.
However, homeowners who experience a wind or hail loss may notice:
This makes reviewing your policy more important than ever — particularly if your roof is more than 10 years old.
Results across carriers in 2025 were mixed.
Companies that implemented product adjustments earlier began seeing improved performance. Others that made changes later are still working through the impact of prior storm seasons.
By the end of 2026, most carriers will have enough time and data to evaluate how these product changes are performing. If results continue trending positively — and if storm activity remains manageable — we expect continued stabilization.
We believe 2026 has the potential to be a more stable year for the insurance marketplace in Wisconsin.
One unique feature of this cycle has been stricter underwriting standards — particularly around roof age and roofing materials. In previous hard markets, carriers would often accept difficult risks at higher premiums. Today, many carriers are choosing to avoid certain exposures altogether.
While this has made placement more challenging in some situations, improving overall risk quality may help accelerate recovery across the marketplace.
Weather, of course, remains the wildcard. A milder storm year would certainly help. That said, the structural product changes carriers have made should positively impact results regardless of storm patterns.
Overall, the outlook for 2026 is more positive than the past few years.
If you haven’t reviewed your homeowners policy in the past few years, there is a strong likelihood that your coverage has changed.
Now is a good time to:
At American Advantage Lindow Insurance, we’re here to help you navigate these changes and make sure your coverage aligns with your expectations.
The insurance landscape continues to evolve — but with the right guidance, you can stay informed and confident about your protection moving forward.
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