The Benefits of Homeowners Insurance

Unlike so many other insurance plans, homeowners insurance is actually generally considered quite affordable. Let’s compare a typical health insurance plan to a typical homeowners’ insurance plan. On average, a family health insurance plan for a family will cost around $10,000-$12,000, and many say health care is expected to continue to rise about 10 percent a year. Usually, the family doesn’t have to pay the entire $10,000-$12,000 deductible. Often an employer will foot half the bill, cutting the cost to about $5,000 a year, still a hefty amount for a family that’s struggling just to make a house payment and put food on the table. On the other hand, a homeowners’ insurance plan will often cost about $500-$600 on a three-bedroom, two-bathroom house. Renters insurance is even more reasonable, often less than $200.

While some may debate whether a health insurance policy is even affordable, we don’t hear politicians talk about whether to nationalize homeowners insurance policies so the average family can pay for it. In other words, a homeowners insurance policy is generally considered a no-brainer. If the house catches on fire or is destroyed, the insurance company will often have a policy that covers 100 percent of the cost of the house, plus some for your possessions. If you’re trying to save $500 a year by not paying for homeowners insurance and your house burns down, then you’ve lost everything. In addition, a homeowners insurance policy can cover even more than just damage to your home during a catastrophic event.


Shed, Lawn and other Property

By “other property,” we don’t mean your vehicle or all of your jewelry. The policy will generally cover a certain amount of your personal property, including jewelry, but you may want to make sure some specific objects are covered completely. For an additional fee you can also cover some valuable objects, such as an engagement or wedding ring.

Generally, your homeowners insurance policy will cover your lawn and garden. This doesn’t mean you should call your insurance company if one of your flowers wilts, but the policy should cover the combined value of the property and home if it’s destroyed.

Generally, the policy will also cover an outside garage or shed. The policy holder should make sure to review all parts of the policy with the insurance company to make sure it will cover the cost of these, though.

Flood Insurance

Actually, even though a homeowners insurance can cover flood damage, it usually doesn’t. Check with your provider to see if you can have this option.


This is the part that many don’t realize, but it’s a great thing to have in our lawsuit-happy society. This covers damage that you or your family bring to other people’s property or bodies. In other words, you can be covered even if you accidentally injure someone or damage their possessions off your property. By the basic definition of liability, if you or your family cause damage to some of your own property, then you’re not covered. Some of the only exceptions include auto or business related accidents. It can even cover libel or slander. If your job or position requires you to be scrutinized in the public, you may want to make sure you have some protection in case you accidentally say something you didn’t mean to say and you’re slapped with a lawsuit. Sometimes elected officials or business owners can be targeted for lawsuits, so you may want to be careful, even if you consider yourself a polite person who would never say anything bad about anyone.

Every Policy is Different

Ultimately, it’s up to the policy owner to make sure his or her policy covers specifics such as the lawn, flood damage or liability. Just because a policy generally covers something doesn’t mean that it will. If there are any questions about the policy, contact your homeowners insurance company immediately. Most people don’t enjoy reviewing any of their insurance policy, but at least the homeowners insurance isn’t nearly as convoluted as life insurance or health insurance. So take the extra time to review it.


Homeowners Insurance Tips

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