You're right, your homeowners insurance will definitely drop you if you're using a non-listed wood stove (such as a barrel stove). Barrel stoves are great at 1 thing only IMHO, getting a cheap wood burning stove. That's where they "good" ends.
They definitely are not the most efficient, and they definitely aren't the safest, but they are cheap.
Also, you'd probably do better with a fan on the floor blowing the cold air from the house into the garage. It's easier to move the cold air on the floor than the hot air that's on the ceiling.
Either way there is an exchange. The direct warm air into the house is probably more comforting especially for mom and the kids.......