Affordable Health Insurance

By some figures, two thirds of American homes do not carry enough homeowner’s insurance, and the average gap is 23%. That could add up to a lot of money coming out of your pocket if you have to make a claim. For a look at how much various kinds of damage can cost, we can see what insurance companies on average pay in claims for them.

Fire damage is certainly the most expensive sort of claim most of the time. Insurance companies pay an average of $24,000 per claim. 23% of $24,000 is $5,520 a substantial chunk if you’re trying to cope with all the other costs that insurance doesn’t pay. Wind and hail damage claims cost over $7000 a piece and water damage more than $5,500. After burglaries, insurance companies pay an average of $2,500. These numbers are assuming that these payouts paid the full cost of the damage, but actual damages may have run higher if the homeowners were under insured.

Liability claims are also significant. You may think it incredible that someone could get hurt on your property and actually sue you for it, but it happens all the time. Claims for bodily injury can average over $5,000 in medical payments and other damages. Liability claims also carry the most potential for running extremely high, into the hundreds of thousands of dollars sometimes, and you may not have enough insurance to protect you, especially if you have significant personal assets which a court could seize. Ironically, most underinsured homeowners would pay only an extra $10 each month to be properly insured.

Insurance claims make up about 58% of where the money you pay to your insurance company goes. Only 9% of it is profit for the company. You shouldn’t worry too much that if you pay the higher premiums for more coverage you are merely making the homeowner’s insurance company rich; rather, you should think of the fact that you are trying to prevent yourself from being made poor, whether by natural disasters or by unkind lawsuits. Few things are worse than losing the home you love to tornadoes or fires, but being financially ruined as well is.

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