Knowing home insurance basics can help you protect your property

By Marian Johns | | Sep 24, 2018


Your premium depends on things such as the age, condition and location of your home.   File photo

Homeowners insurance might not be the most riveting topic, but learning even just the basics about homeowners coverage and your policy can come in handy if you face a property loss. 

Insurance expert and director of insurance product management at Kin Insurance Kevin Turner says, simply put, homeowners insurance protects your home and your belongings. 

"In exchange for your premium, your insurance provider pays for certain damages, sparing you from a large bill when disaster strikes," Turner said. 

According to Turner, a basic homeowners insurance policy coverage includes Coverage A for your dwelling; Coverage B for other structures; Coverage C for personal property; Coverage D for loss of use/additional living expenses coverage; and Coverage F for personal liability. Coverage E is related to medical payments, he said. 

A term most homeowners are already familiar with is deductible.

"A deductible is a flat dollar amount you pay toward a claim before your insurance benefits kick in to cover the rest," Turner said. "Typically, the higher your deductible, the lower your premium."

Turner explained that while the national average for homeowners insurance is around $1,083, your premium depends on things such as the age, condition and location of your home; the amount of coverage you choose; your insurance-based credit score; and your claims history.

According to Turner, understanding replacement cost value and actual cash value when it comes to your homeowners insurance is also important. 

"Understanding the difference between replacement cost (the cost of rebuilding or replacing your home with the same exact materials at current prices) and actual cash value (the cost to rebuild your home minus depreciation) is one of the best ways to help you decide how much coverage you need," he said. 

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