How Home Insurance Can Save Your Butt

The beautiful thing about homeowners insurance is that with enough coverage and the correct type of policy you can cover yourself for pretty much everything. When I was in college I benefited from a comprehensive homeowners insurance policy in more ways than one.

It was a beautiful spring day so everyone was outside hanging out, grilling and just enjoying the weather. I was playing baseball in the backyard, bottom of the 9th, 1 out, runners on the corners down 2 runs and I’m up. So I have to swing for the fences right? Ball comes in and I swing out of my shoes and miss, strike 1. Next pitch, same hard swing fouled straight back. Down to my last strike I choked up on the bat a bit, pitch came in low, I swung and popped it foul. Right through the rear-windshield of a Jeep Grand Cherokee parked on the street. And I mean through, there was no windshield left, just thousands of shards of glass.

I lined out weekly to shortstop on the next pitch and we lost. To top it off I had to deal with a rear windshield that had basically exploded into the car and I did not have the money to pay for this. I called my parents to tell them what happened and get some baseball pointers from my dad. When I mentioned I didn’t have any money to pay for the windshield and had to use my emergency credit card my dad said he had to make a call but thought the accident would be covered under his insurance. He called up his agent and it turns out my father had an amazing insurance policy and my accident would be covered.

Now I got lucky and this just one example and one in which I’m sure my father paid higher premiums to get.  But even a policy with less coverage is a smart investment. A couple of years after the baseball incident my mother was throwing a bridal shower for my fiancée. I met her when I had to replace the rear windshield of her jeep so things worked out in the end for everyone. So back to the shower, there was an area in my mother’s kitchen where there had been some sort of leak coming in to the house and warping and then latter rotting out a very small section of the wood floor, maybe 2 square feet. Well the insurance adjuster came out, took a look at it and said it had to be replaced because of the leak. The small area would have been over $2000 but again, was covered under insurance.

If you haven’t done so lately, maybe it’s time to rethink your insurance and make sure that when crazy things happen, you’re covered.

How Home Insurance Can Save Your Butt

Sweating the Big Stuff

18 thoughts on “How Home Insurance Can Save Your Butt

  1. Best make sure what you’re covered for. There have been many instances where policies implied that your covered for certain things (flood damage for instance) however when the time to get paid out arrived there was some small print suggesting otherwise.

  2. I had the same problem with flood damage a few years back when there was torrential rain. I thought I was covered for flood but it was not for storm damage (which what caused the flooding in the first place). Needless to say I changed to another insurer and am always sure to read the fine print is the PDS.

    1. @Richard,

      Theft is unlikely anymore. I just got my home covered from damage etc… however I choose not to cover contents as they are so easily replaced in most cases. I do live in a unit block anyway so unless there’s a fire (highly unlikely) then the money I have saved over the years could easily replace the things that could potentially be stolen/damaged.

  3. Also keep in mind you can often bundle policies. I save a few hundred $$ by combining my home and content insurance with my car insurance.

  4. It’s all about bundling – I saved a few hundred too bundling car and contents insurance with the same provider. No harm calling up and asking.

  5. Make sure you check your cover to see exactly what you are covered for. I had a few bad experiences with my car in the past. I suppose you learn from your mistakes :p

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