- A: The price you pay for your Domestic Package Insurance can vary depending on the size of your house and the insurance coverage you buy. Do not make your decision on price alone. You want an agent and agency that represents numerous markets and will shop for you based on your needs and budget. You want someone that answers your questions and handles claims fairly and efficiently. Select an agent that takes the time to answer your questions and returns your calls.Here are some ways or save money:
a) Buy your home and auto policies from the same insurer
Most companies that sell Domestic Package Insurance also sell auto insurance. Some insurance companies will reduce your premium if you buy tow insurance policies from them. But make certain this combined price is lower than buying the coverage from separate companies.
b) Do not confuse what you paid for your house with rebuilding costs
The land under your house is not at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don’t include its value in deciding how much to Domestic Package Insurance to buy.
- A: You need enough insurance to cover the following:
- The structure of your home but not less than your mortgage.
- Your personal possessions
- Your liability to others
Buildings - The structure
You need enough insurance to cover the cost of rebuilding your home at current construction costs. Do not include the cost of the land and do not base your rebuilding costs on the price you paid for your home. The cost of rebuilding could be more than the price you paid or you could sell it today.
Most lenders require you to by Domestic Package Insurance to cover the amount of your mortgage. If the limit of your insurance policy is based on your mortgage make sure it is enough to cover the cost of rebuilding. (If you pay off your mortgage do not, cancel your policy. The Domestic Package Insurance protects your investment in your home.)
The responsibility for determining the correct coverage to carry on your home ultimately falls on the homeowner.
Contents - Your Personal Possessions
To determine if this enough coverage, you need to do a home inventory. This is a detailed list of everything you own and information related to the cost to replace these items if they were destroyed by an insured event.
Liability Protection
The liability portion of your policy pays for both the cost of defending you and any court awards—up to the limit of your policy with world wide coverage.