Home Services Center

If there’s only one type of insurance that you sign up for after reading this, make it term life insurance. Sure, a lot of people know life insurance is important, but somehow they still don’t make it a priority. Get this: The Insurance Information Institute says only 54% of Americans have life insurance.¹ And since there is a 100% chance of dying someday—those aren’t very good odds.

Think about it: If you were to die unexpectedly, how would your spouse pay for monthly expenses without your income? The last thing you want your grieving spouse to worry about is how to keep food on the table and make the mortgage payment after you’re gone. But if you had a term life insurance policy for 10–12 times your yearly income, your family wouldn’t have to worry about making ends meet, losing their home, or changing their college plans if you’re not there to provide for them.

Don’t put this one off anymore. Talk to an independent insurance agent about term life insurance today. ASAP. Right now. It doesn’t cost much, but the peace of mind it gives you is priceless. (P.S. When you shop for life insurance, don’t forget to go with term life insurance. Whole life insurance is a gimmick in the long run.

And if you think you don’t need life insurance just because you’re young and single—think again. If you have a ton of debt and no savings to your name, look at a small term life insurance policy. It’s pretty easy for a healthy 30-year-old to find a cheap policy that will at least pay off your debt and cover burial expenses.  Reach out to Zander Insurance, one of our RamseyTrusted providers, to get a term life insurance quote now.

If you don’t have a family, are debt-free and have enough cash to pay for your burial, you can hold off on life insurance. No harm, no foul. But think about this: The younger you are, the more affordable term life insurance is. And you’re never going to be younger than you are today. All that to say, if it’s something you think you could use in the future, it’s cheaper to get it now than in 15 years.

You should never drive around uninsured—not just because it’s against the law but also because getting in a fender bender can be ex-pen-sive. The Insurance Information Institute says the average loss per claim on cars is around $1,057.² Imagine having to pay that kind of money out of pocket! The good news is, you’ve got options when it comes to auto insurance, so there’s no reason to skip it. Here are some different types of auto insurance coverage:

• Liability coverage. If you’re responsible for an accident, your liability coverage will take care of the costs of any injuries or property damage caused in the collision. Most states make you to carry a basic minimum amount of coverage, so check with your insurance agent to figure out how much you need.

• Collision coverage. This covers the cost to repair or replace your car if it’s damaged or totaled in a wreck.

• Comprehensive coverage. This level of insurance covers your losses that aren’t caused by the wreck itself, like theft, vandalism, flood, fire and hail.

Trying to figure out your auto insurance needs can be tricky, so make it simple—talk to an insurance agent to help you get the right protection you need on your car.

Whether you own your home or are renting, it’s a really good idea to have homeowners or renters insurance to cover you. If you already have a homeowners policy, make sure it includes this fancy thing called extended dwelling coverage. This kind of coverage adds an extra layer of protection above and beyond your policy limits.

Here’s the thing with extended dwelling coverage: The insurance company will replace or rebuild your property even if the cost goes over your policy’s coverage. But there’s a limit to how much they’ll pay out—usually 20–25% above the amount you’re insured for unless you opt for more coverage. Remember, the higher your home’s value, the higher the need for extended dwelling coverage.

When it comes to homeowners insurance, it’s always a good idea to check with your agent to know what your policy covers and what it doesn’t. You don’t want any surprises. Here’s some extras you might need to add:

• Flood insurance. Most homeowners don’t know that flood insurance doesn’t come with their regular policies. And flood insurance is also different than water backup protection. Is that all clear as mud? An agent can help you make sense of it all.

• Hurricane insurance. If you don’t live anywhere near a body of water, this insurance isn’t for you. But if you do live near the coast, you might want to look into hurricane insurance. Remember, if you don’t have wind insurance coverage or a separate hurricane deductible, your homeowners insurance policy won’t cover hurricane damage.

• Earthquake coverage. Depending on where you live in the country, earthquake coverage might not be included in your homeowners coverage. If you live in a place where earthquakes are known to shake things up, you might want to tack it on to your policy.

And remember, if you’re a renter, you’re not off the hook for insurance either. Without renters insurance, it’s up to you to replace your belongings if they’re lost in a fire, flood, burglary or some other disaster. Plus, a lot of landlords and apartments will require you to have renters insurance too. A good independent insurance agent can walk you through the steps of covering the basics of both homeowners and renters insurance.

Pro tip: If you have a full emergency fund in place, you can take a higher deductible and lower the premium on your policy to help you save money.

Another super important type of insurance you can’t go without? Health insurance coverage. A study from academic researchers showed that about 67% of people who file bankruptcy do it because they’re drowning in medical debt.³

Here’s the hard truth: If you don’t have health insurance, you’re leaving yourself wide open to a money disaster. Just one out-of-the-blue medical emergency could add up to hundreds of thousands of dollars of medical bills. Don’t put yourself in that position by not having health insurance.

The high cost of medical insurance isn’t an excuse to go without coverage—even if you don’t go to the doctor a lot. To help cut back on the cost of health insurance, you could get a high-deductible health insurance plan. Sure, you’re on the hook to pay more of your up-front health care costs, but you’ll pay a lower monthly premium.

Plus, a high-deductible health plan qualifies you to open a Health Savings Account (HSA)—a tax-advantaged savings account used for paying medical expenses.

We’re big fans of HSAs around here. Here are some more of the benefits an HSA gives you:

• Tax deduction. You can deduct HSA contributions from your gross pay or business income. In 2022, the tax deduction is $1,400 for singles and $2,800 for a family.⁴

• Tax-free growth. You can invest the funds you contribute to your HSA, and they grow tax-free for you to use now or in the future.

• Tax-free withdrawal. You can use the money tax-free on qualified medical expenses like health insurance deductibles, vision and dental.

Some companies now offer high-deductible health plans with HSA accounts as well as traditional health insurance plans. Take a look at your options and see if a high-deductible plan could end up saving you money. An independent insurance agent can help walk you through high-deductible health plan options you can combine with an HSA.

Long-term disability insurance protects you from losing your income if you’re unable to work for a long stretch of time because of an illness or injury. Don’t think a permanent disability could sideline you and your ability to work? Think again. The Social Security Administration says, just over 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67.⁵

Those odds are way too high for you to skimp on long-term disability insurance. If you’re in your prime income-earning years, a permanent disability could derail your dreams of homeownership or even paying for your kid’s college.

Bottom line? Make sure you’re covered. Tons of companies offer long-term disability insurance to their employees these days, so start there.

When you’re looking at your options, you’ll also find short-term disability insurance that fills in income gaps caused by an illness or injury that keeps you out of work for three to six months. That’s the insurance you can skip—because your fully funded emergency fund should cover that. To figure out what other insurance coverage you might actually need, take our quick Coverage Checkup.

Long-term care insurance covers a ton of services like nursing home care and in-home help with basic personal tasks (bathing, grooming and eating). Usually, long-term care means those who have a chronic illness or disability need ongoing help. If it sounds expensive, that’s because it is. And long-term care costs aren’t usually covered by Medicare either.

So, who really needs long-term care? To protect your retirement savings from getting drained by long-term care, get this coverage when you turn 60. Remember that while you probably won’t need long-term care before then, a lot of factors (like your health and family history) go into your decision of when to buy long-term care insurance—and how much you’ll pay for it.

That’s why it’s important to talk to a RamseyTrusted pro like an Endorsed Local Provider about long-term care that fits your situation. And even if you’re not close to this stage of life, your parents might be. So bite the bullet and take time to talk with them about their long-term care options too.

Identity theft isn’t a joke—even if you’re careful about protecting your personal information. In fact, the 2021 Identity Fraud Study released by Javelin Strategy and Research said that identity threat losses added up to $56 billion in 2020.⁶ Data breaches are in the news way too much, and retail stores are under constant attack by hackers who break into their payment systems.

Think about it: With just a few important bits of information about you, criminals have all they need to do a number on your money by taking out a mortgage in your name, opening up lines of credit, or filing a false tax return.

Cleaning up an identity fraud situation could take years to handle on your own, so make sure your insurance includes identity theft services that clean up the mess for you.

An umbrella policy adds an extra layer of protection for you and your assets when you need coverage that goes above and beyond your homeowners or auto insurance. Let’s say you end up at fault for a multiple-vehicle accident (that’s no fun). Your medical bills and property damages could quickly add up to more than your auto insurance will even cover. And if you’re sued for the difference, your savings, your home and even your future wages could be on the chopping block.

Protect yourself from a situation like that with a personal liability umbrella policy. In fact, Dave recommends an umbrella policy for anyone with a net worth of $500,000 or more. For a few hundred dollars a year, an umbrella policy can increase your liability coverage from the standard $500,000 to $1.5 million. Talk with an Endorsed Local Provider to get the type of umbrella insurance coverage that’s right for you and your family.

15 home improvement ideas that are the most popular

15. Driveway or sidewalk improvements

Number of homeowners who reported doing this type of project: 1,929,000

Homeowners spent an average of $3,220 per driveway or sidewalk improvement project in 2017 — for a collective total spending on such projects of about $6.2 billion, according to the Harvard Joint Center for Housing Studies’ 2019 Improving America’s Housing report.

14. Kitchen remodel

Number of homeowners who reported doing this type of project: 2,092,000

The average homeowner spent $12,255 on a kitchen remodeling project in 2017.

According to the JCHS report, 11% of all money spent on home improvement projects that year was spent on kitchen remodels. Minor kitchen remodels were much more common than major kitchen remodeling projects — the latter of which the report defines as “professional home improvements of more than $30,000.”

Incidentally, major kitchen remodels tend to offer a low return on investment. As we detail in “The 10 Worst Home Renovations for Your Money,” midrange and upscale kitchen remodels offer some of the lowest returns of any home renovation.

A midrange minor kitchen remodel on the other hand, offers one of the highest returns of any home improvement project, according to Remodeling magazine’s 2019 Cost vs. Value Report.

13. Security system replacement

Number of homeowners who reported doing this type of project: 2,143,000

On average, homeowners spent $628 replacing home security system equipment.

According to the Harvard Joint Center for Housing Studies, homeowners typically pay for small projects like this with cash, as opposed to using a credit or retail store charge cards or a home equity loan, home equity line of credit (HELOC) or cash from mortgage refinancing.

In fact, of all the homeowners who did a security system project themselves, 90% paid with cash. By comparison, 84% of all DIY home improvement projects were paid for with cash.

12. Heating equipment replacement

Number of homeowners who reported doing this type of project: 2,224,000

The average homeowner spent $3,790 replacing built-in heating equipment in 2017, according to the Harvard Joint Center for Housing Studies’ 2019 Improving America’s Housing report. That made this type of project less expensive yet less common than replacement of central air conditioning in 2017.

11. Fencing or wall improvementsNumber of homeowners who reported doing this type of project: 2,225,000

Of all the types of improvements to a yard or lot, fencing and walls were the second-most common, according to the JCHS report. On average, homeowners spent $2,356 on this type of project.

10. Electrical replacement

Number of homeowners who reported doing this type of project: 2,244,000

For projects involving replacement of electrical wiring, fuse boxes or breaker switches, homeowners spent an average of $1,473 per project — which likely went to a professional.

“Even homeowners skilled at common DIY projects like painting, tile-setting, and deck laying are likely to hire professional contractors for projects such as electrical, plumbing, and roofing upgrades,” states the JCHS report.

9. Central air conditioning

Number of homeowners who reported doing this type of project: 2,741,000

Homeowners spent $5,113, on average, replacing central air conditioning equipment in 2017. This made them more expensive yet more popular than replacement of built-in heating equipment.

8. Landscaping or sprinkler improvements

Number of homeowners who reported doing this type of project: 2,770,000

Of all the types of improvements to a yard or lot included in the JCHS report, landscaping and sprinkler system projects were the most common in 2017. Homeowners who undertook this type of project spent an average of $2,497 on it.

7. Bath remodel

Number of homeowners who reported doing this type of project: 2,869,000

Homeowners spent an average of $6,362 per bathroom remodeling project in 2017, according to the Harvard Joint Center for Housing Studies report.

Minor bathroom remodels were much more common than major remodels — the latter of which the report defines as professional home improvements of more than $15,000.

If you’re looking to renovate a bathroom in hopes that it will boost your home value, steer clear of midrange universal-design bathroom remodels and upscale bathroom remodels. Both are among the 10 worst home renovations for your money, according to Remodeling magazine’s 2019 Cost vs. Value report.

6. Roofing replacement

Number of homeowners who reported doing this type of project: 3,383,000

The second-most common type of exterior replacement project in the JCHS report is a roofing replacement. On average, homeowners spent $7,674 on this project.

Roofing improvements are also among a handful of home improvements that “have the potential to generate large energy savings,” according to the JCHS report. The others include improvements to siding, windows, doors, HVAC systems and insulation.

5. Water heater replacement

Number of homeowners who reported doing this type of project: 3,551,000

The average homeowner spent $976 replacing a water heater. As with security systems, households typically pay for smaller home improvement projects like this with cash rather than credit or retail store charge cards or the proceeds of a home equity loan, home equity line of credit (HELOC) or mortgage refinancing.

4. Window or door replacement

Number of homeowners who reported doing this type of project: 3,722,000

Replacement of doors or windows is the most common type of exterior replacement project in the JCHS report. On average, homeowners spent $3,442 on this type of project.

As with roofing replacements, door and window replacements are among a handful of home improvements that “have the potential to generate large energy savings,” according to the Harvard Joint Center for Housing Studies’ 2019 Improving America’s Housing report.

If you’re considering replacing your front door, you might want to go for one in a shade of black. A 2018 analysis by real estate website Zillow found that having a front door in such a color can boost the selling price of your home by more than $6,000.

3. Dishwasher or garbage disposal replacement

Number of homeowners who reported doing this type of project: 3,734,000

They may not be the most exciting home improvements, but the replacement of built-in dishwashers and garbage disposals are certainly popular ones. They were the third-most common type of home improvement in 2017, according to the Harvard Joint Center for Housing Studies.

With the average replacement of a built-in dishwasher or garbage disposal costing $570, projects involving such appliances are among those that households typically pay for with cash rather than some form of credit or loan.

To get the most out of your investment, check out “17 Unusual Things You Can Clean in a Dishwasher.”

2. Plumbing fixture replacement

Number of homeowners who reported doing this type of project: 4,096,000

Plumbing fixture replacements were the second-most common type of home improvement project in 2017, according to the JCHS report. On average, homeowners spent $1,360 on this type of project, typically paying for it with cash rather than with credit or loan proceeds.

1. Indoor flooring replacement

Number of homeowners who reported doing this type of project: 5,219,000

Replacing indoor carpeting, flooring, paneling or ceiling tiles was the most common type of home improvement project in 2017, according to the Harvard Joint Center for Housing Studies’ 2019 Improving America’s Housing report. On average, homeowners spent $3,283 on this type of project.