The recent flooding in the Milwaukee area has left many homeowners facing extensive water damage—and serious questions about their insurance coverage. Unfortunately, standard homeowners policies often fall short when it comes to flood-related losses. Below is an overview of what’s typically covered, when legal help may make sense, and immediate resources available.
What’s Typically Covered (and What’s Not)
- Flood/Surface Water: Most standard homeowners insurance policies exclude flood damage. Coverage for flooding is usually only available through separate National Flood Insurance Program (NFIP) policies.
- Sewer & Drain Backup: Some policies include limited coverage through a Backup of Sewers/Drains or Sump Pump Overflow endorsement. These endorsements usually come with strict dollar limits—commonly $5,000 or $10,000—and if that’s what your policy provides, that cap is all you’re entitled to.
Important: If your only coverage is a $5,000 sewer backup endorsement and your insurer already paid it, there is likely no additional recovery available.
When Legal Help May Make Sense
At MGW Law, we focus on claims where the damages are significant and there’s evidence the insurance company mishandled or wrongfully denied coverage.
- Policy & Denial Review: If you’ve received a denial or partial payment on a large loss, send us your policy (declarations + endorsements), denial letter, photos/videos, estimates, and a timeline of events. We’ll determine whether the insurance company properly handled your claim.
- Flood Insurance Disputes: If you had separate flood insurance and your claim was denied or underpaid, we can help evaluate next steps.
- Substantial Coverage Disputes: If your insurer is refusing to pay despite a covered loss and significant damages, we may be able to step in.
If you have minor damage or claims under your policy’s stated limit, hiring an attorney is not usually cost-effective.
Legal Deadlines You Should Know
In Wisconsin, if you want to file a lawsuit against your insurance company for Breach of Contract, the statute of limitations is typically one year from the date of loss. That timeline can move quickly, so review your policy, document everything, and seek legal guidance promptly if you’re considering litigation.
Immediate Resources for Homeowners
If your claim is limited by policy language or your losses are relatively small, your best resources may be outside the courtroom. Here’s where to turn:
- Report Your Damage: Milwaukee County is asking residents to report flood damage by calling 2-1-1 or using their online portal.
- Shelter & Supplies: The American Red Cross and Salvation Army are providing shelter, cleaning kits, and emergency assistance.
- Government Assistance: Wisconsin Emergency Management has requested FEMA support. Preliminary Damage Assessments are underway, and FEMA assistance could become available if a disaster is declared.
- Mortgage Relief: Struggling with payments? Contact your loan servicer to ask about disaster forbearance (often available for federally backed loans).
- Insurance Complaints: If you believe your insurer mishandled your claim, you can also file a complaint with Wisconsin’s Office of the Commissioner of Insurance (OCI).
What to Send Us If You’d Like a Consultation
To determine if we can assist, please provide:
- Your policy declarations page and all endorsements (especially sewer/sump backup coverage),
- The denial letter (if applicable),
- Photos/video of the damage, mitigation invoices, contractor estimates, and
- A brief timeline of events and your insurer communications.
Note: Because of the time and expense involved in litigation, our firm is best positioned to help with substantial claims where the insurance company wrongfully denied coverage or underpaid a covered loss.
Next Steps
If your claim involves significant damages and you believe your insurance company mishandled your claim, contact MGW Law today. We’ll review your policy and determine whether legal action is appropriate.