CAR INSURANCE: Basic Information

1) What is car insurance?

Car insurance helps to protect against financial loss if you met with an accident. It's an agreement between client and the insurance service provider. Client agrees to pay the premium and the insurance company assures to pay his/her losses as defined in the policy.

Car insurance provides liability, property and medical coverage:

* Liability coverage pays for client’s legal responsibility to others for bodily injury or property damage.
* Property coverage pays for any damage or theft of client’s car.
* Medical coverage pays for the cost of treatment of injuries, rehabilitation, sometimes lost wages and funeral expenses to.

A car insurance policy consists of six different kinds of coverage. Most states require client to buy some of these coverages. Most car policies are for six months to a year. Insurance Company notifies to the clients by mail when it's time to renew the policy and to pay their premium.

2) What is covered by a basic car policy?

a. Bodily Injury Liability: This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else.

b. Medical Payments or Personal Injury Protection: This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car.

c. Property Damage Liability: This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property.

d. Collision: This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over.

e. Comprehensive: This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

f. Uninsured and Underinsured Motorist Coverage: This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

CAR INSURANCE: How to Buy & Save Money

1) How to choose an insurance company?

The main criteria for choosing an insurance company are listed below.

a. Licensing:
Not every company is licensed to operate in each state. As a general rule, you should buy your policy from a licensed company in your state, because then can you rely on your state insurance department in case of any problem.

b. Financial Solidity:
You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.

c. Price:
Many companies sell insurance policies and prices vary from company to company. Get at least three price quotes from agents, companies and through the Internet. You may get a guide from your state insurance department that shows what insurers charge for different policies in various parts of your state.

d. Service:
Your insurance company and its representatives should answer your queries and handle your claims efficiently, fairly and quickly. You should look at the reputation of the insurance company and the agent through a good market survey. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department can give you a good account of the insurance company you are choosing for their consumer complaints about its service relative to the number of policies it sold.

e. Comfort:
Ensure your comfort with your insurance purchase, whether you buy it directly from the company over the phone, or over the Internet, or from a local agent. Make sure that the agent or company will be easy to reach in case you have any question or need to file a claim.

2) How can I save money?

There are many factors on which your price of insurance depends. The price of insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from and what type of car you have. Here we suggest you some ways to save money.

a. Shop around:
Prices of insurance can vary from company to company, so it pays to shop around. Get at least three to four price quotes. You can call insurance companies directly or access information on the Internet. Your state insurance department may also provide comparisons of insurance prices charged by major insurance companies.

Get some good quotes from different types of insurance companies. Some sell policies through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Many companies sell directly to consumers over the phone or through Internet.

But don't shop by price alone. Choose such a company that can answer your questions and handles claims efficiently and fairly. Take recommendations of your friends and relatives. Contact to the state insurance department to find out whether they make available consumer complaint ratios by company.

b. Before you buy a car, compare insurance costs:
Before you buy a new or used car, check into insurance costs. Your premium is based in part on the cost to repair it, car's sticker price, its overall safety record, and the likelihood of theft. Many insurance companies’ offers discount for features that reduce the risk of injuries or theft. These include anti-lock brakes, air bags, anti-theft devices and daytime running lights. Some states require insurers to give discounts for cars equipped with anti-lock brakes or air bags.

Cars that are favorite targets for thieves cost more to insure. Information that can help you decide what car to buy is available from the Insurance Institute for Highway Safety.

c. Buy homeowners and car coverage from the same insurer:
Many insurers will give you a discount if you buy two or more types of insurance from them. Also you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers. But shop around; you may save money buying from different insurance companies despite the multi-policy discount.

d. Reduce coverage on older cars:
Consider to drop collision and/or comprehensive coverages on older cars. It may not be cost-effective to continue insuring cars worth less than ten times the amount you would pay for coverage. Any claim payment you receive would not substantially exceed your premiums minus the deductible. Claims occur on average only once every 11 or 12 years.

e. Low-mileage discounts:
Some insurance companies offer discounts to motorists who drive a lower than average number of miles in a year. Low mileage discounts can also apply to drivers who carpool to work.

f. Maintain good credit:
Your credit rating may affect what you pay for insurance, so keep a close eye on it. Credit makes insurance rates more fair, accurate and objective. While the use of insurance scoring varies from company to company and state to state, it's a fact that drivers with long, stable credit records have fewer accidents than drivers who don't. There are various Internet services that allow you to check your credit rating and provide tips on how to improve your score.

g. Ask about group insurance:
Some insurance companies offer reductions to drivers who get insurance through a group plan from their employers, or through professional, business and alumni groups and other associations. Ask your employer or any groups or clubs to which you belong.

h. Look for safe driver discounts:
Insurance companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also qualify for a cut if you have recently taken a defensive driving course.

3) How much coverage do I need?

Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you are found legally responsible for bills that are more than your insurance coverage, you will be required to pay the difference from your own pocket. These costs could wipe you out!

In addition to liability coverage, consider buying comprehensive and collision coverage. You do not decide how much to buy. Your coverage reflects the market value of your car and the cost of repairing it.

Decide on a deductible-the amount of money you pay on a claim before the insurance company reimburses you. Typically, deductibles are $500 or $1,000; the higher your deductible, the lower your premium.

4) What determines the price of my policy?

The price you pay for car insurance depends on many factors. The average American driver spends about $700 in a year. Your premium may be higher or lower, depending on:

a. The number of miles you drive each year:
The more you drive, more are the chances for accident. If you drive lower than a average number of miles per year i.e. less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.

b. Your driving record:
The better your driving record, the lower your premium. If you have had serious traffic violations or accidents, you will be required to pay more than if you have a clean driving record. You may also pay more if you haven't been insured for a number of years.

c. Your age:
In general, mature drivers have lower number of accidents than less experienced drivers, particularly teenagers. So insurance companies generally charge more if teenagers or young people below age 25 drive your car.

d. Where you live:
Insurers look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of car repair and medical care.

e. The car you drive:
Some cars cost more to insure in comparison of other. Variables include the cost of the car, the cost of repairs, likelihood of theft and the overall safety record of the car.

5) What information do I need to give to my agent or company?

Your Insurance company or agent will ask you what make and model car you own, roughly how many miles you drive each year, and what kind of liability coverage you require. The agent will also want to know how many people will drive the car, how old the drivers are, where you live and driving records of each household member.

The agent will then ask more detailed questions about your car, such as its Vehicle Identification Numbers (VIN), whether it has passive restraint systems or air bags, anti-theft devices or anti-lock brakes. Do you already have another insurance policy with the company for home or life insurance, iff then you might receive a discount on your car policy. You should also mention if you and other drivers in your household have completed safe-driving courses and if student drivers in your home are getting good grades-both of these may qualify you for discounts on your car policy.

Once the agent has gathered all of the information, he or she will quote you a premium. The premium will depend on all the factors above and on the deductibles you choose.

BIKE INSURANCE: Basic Information

Choosing the right insurance policy is much like choosing the right bike. You want it to fit your lifestyle and needs, but at the same time be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. One must be well aware of insurance laws of their state and area.

The key to finding which coverage is best for you involves learning about all the options available.

a. Collision coverage:

Collision insurance covers damage to your motor bike if you met with an accident. Your insurance company pays for damages minus your deductible, caused when you collide with another vehicle or object. Collision insurance usually covers the book value of the bike before the loss occurred.

b. Liability coverage:

Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It does not cover you or your motorcycle. Find out if your coverage includes Guest Passenger Liability, which provides protection in case if a passenger is injured on the motor-bike. Whether it is included or not totally depends on the company issuing the policy and the laws of your state.

c. Uninsured motorist coverage:

Uninsured motorist coverage pays for lost wages, medical treatment and other damages if a non-insured driver hits you. If your uninsured motorist coverage also includes property damage then your motorcycle would also be covered under the same insurance policy. One should verify if property damage is included or needs to be purchased separately from the insurance provider.

d. Comprehensive coverage:

Comprehensive insurance covers the damages caused by an event other than a collision, such as fire, theft or vandalism. However, just like collision coverage, your insurance company will pay for damages minus your deductible and cover only the book value of the motor-bike.

Keep in mind that most collision and comprehensive coverages will only cover the factory standard parts on your bike. If you decide to add on any additional optional accessories such as a custom paint job, chrome parts, trailers or sidecars etc. you need to look into obtaining additional equipment coverage.

e. Underinsured Motorist Coverage:

This coverage is similar to uninsured motorist coverage except it applies when the other party has lower coverage limits than you do and damages exceed the limits of other party.

f. Tips for the cost-conscious rider:

There are many factors which can play a vital role in determining the cost of your insurance such as your driving record, your age, type of motorcycle you own and where you live or being a graduate of a rider-training course.

* Many insurance companies offer discount from 10 to 15 percent on bike insurance for graduates of training courses, such as the Motorcycle Safety Foundation (MSF) rider course. Riders under the age of 25 are usually considered at higher risk, may see some savings by taking this course. It's also a very good idea for motorcyclists who have already had accidents.

* Get a detailed knowledge of all discounts that your insurance representative offers. Organization discounts, multi-bike discounts for those insuring more than one bike if you're a member of a motorcycle association, and mature rider discounts for experienced riders etc. are some to the possible available discounts. Discounts can range anywhere from 10 percent to 20 percent depending on the insurance company and your state. Availability and qualifications for discounts is also variable and vary from state to state and company to company.

* Keep in mind that the style (such as a cruiser vs. a sports bike), type and age of the motorcycle, as well as the number of miles you drive a year and where you store your bike may also affect the amount of payment for your premium.

* Maintaining a good driving record with no violations can also help you to reduce your premiums.

* Choose the agent or insurance company that best fits to you. If you already have car insurance, you can contact the same insurer. Otherwise, enquirer in your surrounding that is from friends, co-workers and relatives where they bought their car or motorcycle insurance. Your local motorcycle agency may also have a insurance company they refer customers to. Also check local motorcycle newspapers or magazines for insurance professionals advertising motorcycle insurance.

HOME INSURANCE: Basic Information

1) What is Home-Insurance?

Home insurance policy provides financial protection against disasters.

Home insurance policy is a package policy. It covers both the damage to your property and your liability or legal responsibility for any type of injuries and property damage to you and your family members. This also includes damage caused by household pets.

Damages occurred due to any disaster are also covered but, there are some exceptions to. The most significant of them are damage caused by earthquakes, floods and week maintenance of property. One should buy two separate policies for earthquake and flood coverage. Problems occurred by week-maintenance are the homeowners responsibility.

2) What all a Standard Home-Insurance Policy consists?

A Standard Home-Insurance Policy includes four types of coverage. They include:

a. The Structure of Your House: This coverage pays for repair or rebuilds your home if it is damaged or destroyed by hurricane, fire, hail, lightning or any other disaster mentioned in your policy. Before to purchase a coverage for the structure of home, one should think on the point that to buy enough to rebuild your home.

b. Your Personal Belongings: Your Personal Belongings like Clothes, furniture, Sports Equipment etc. are also covered if they are damaged or destroyed by fire, hurricane, and insured disaster or if stolen.

c. Liability Protection: Liability Protection covers you against lawsuits for property damage or body injury caused by you or your family members to other people. It even pays for the damage caused by your pets.

The Liability Portion of your policy pays for both the cost of defending you in court and any court awards-up to the limit of your policy. You are fully covered not only in your home, but also anywhere in the world.

This Policy also provides you a no-fault medical coverage. In case a friend or neighbor of your's is injured at your home, he or she can simply submit their medical bills to your Insurance Company.

d. Additional Living Expenses: Additional Living Coverage pays for the additional costs of living away from home if you can't live in your home due to any damage from a storm, fire or other insured disaster. It covers restaurant meals, hotel bills and other living expenses incurred while your home is being rebuilt. Coverage for Additional Living Expenses differs from company to company.

3) Are there different types of policies?

Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.

The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as "standard" or "deluxe".

Your level of coverage: Regardless of whether you are an owner or renter, you have the following three options:

i. Actual cash value: This type of policy pays to replace your home or possessions minus a deduction for depreciation.

ii. Replacement cost: The policy pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation.

iii. Guaranteed or extended replacement cost: This policy offers the highest level of protection. A guaranteed replacement cost policy pays whatever it costs to rebuild your home as it was before the fire or other disaster-even if it exceeds the policy limit. This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected situations. It generally won't cover the cost of upgrading the house to comply with current building codes. You can, however, get an endorsement (or an addition to) your policy called Ordinance or Law to help pay for these additional costs. A guaranteed replacement cost policy may not be available if you own an older home.

Some insurance companies offer an extended, rather than a guaranteed replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild your home. Generally, it is 20 to 25 percent more than the limit of the policy.

4) Is flooding covered in home insurance?

Standard home policies do not cover flooding. You can purchase flood coverage directly through your homeowners insurance agent.

Replacement cost coverage is available for the structure of your home, but only actual cash value coverage is available for your possessions. Replacement cost coverage pays to rebuild your home as it was before the damage. Actual cash value is replacement cost coverage minus depreciation so that the older your possessions are, the less you will get if they are damaged. There may also be limits on coverage for furniture and other belongings stored in your basement.

Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill. Don't wait for a flood season warning on the evening news to buy a policy-there is a 30-day waiting period before the coverage takes effect.

The federal flood insurance program provides only limited coverage. If you need more coverage than the federal program provides, additional coverage known as "excess" flood insurance is available from specialized insurance companies. Depending on the amount of coverage purchased, an excess flood insurance policy will cover damage above the limits of the federal program on the same basis as the federal program-replacement cost for the structure and actual cash value for the contents. Excess flood insurance is available in all parts of the country-in high risk flood zones along the coast and close to major rivers as well as in areas of lower risk-wherever the federal program is available. It can be purchased from specialized companies such as Lexington Insurance Company, part of American International Insurance Company, and Lloyd's through independent insurance agents or from regular homeowners insurance companies that have arrangements with a specialized insurer to provide coverage to their policyholders.

5) Can I own a home without home insurance?

You can legally own a home without home insurance. But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That's because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require earthquake coverage if you live in a region vulnerable to earthquakes. If you buy a co-op or condominium, your board will probably require you to buy homeowners insurance.

After your mortgage is paid off, no one will force you to buy homeowners insurance. But it is not advisable to cancel your policy and risk losing what you've invested in your home.

6) What is renters insurance?

Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renter’s insurance policies you may purchase:

* Actual Cash Value - pays to replace your home or possessions minus a deduction for depreciation up to the limit of your policy

* Replacement Cost - pays the actual cost of replacing your home or possessions (no deduction for depreciation) up to the limit of your policy With either policy, you may want to consider purchasing a floater. A standard renter’s policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

7) How to take a home inventory and why?

Would you be able to remember all the possessions you've accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category -- pants, coats, shoes, for example -- making notes about those that are especially valuable. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.

i. Don't be put off! If you are just setting up a household, starting an inventory list can be relatively simple. If you've been living in the same house for many years, however, the task of creating a list can be daunting. Still, it's better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.

ii. Big ticket items: Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately.

iii. Take a picture: Besides the list, you can take pictures of rooms and important individual items. On the back of the photos, note what is shown and where you bought it or the make. Don't forget things that are in closets or drawers.

iv. Videotape it: Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder.

v. Use a personal computer: Use your PC to make your inventory list. Personal finance software packages often include a homeowner’s room-by-room inventory program.

vi. Storing the list, photos and tapes: Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you'll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.

8) What's the difference between cancellation and non-renewal?

There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
* You fail to pay the premium
* You have committed fraud or made serious misrepresentations on your application.

Non-renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires.

Depending on the state you live in, your insurance company must give you a certain number of days' notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company's consumer affairs division. If you don't get a satisfactory explanation, call your state insurance department.
The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the non-renewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company's risk considerably, like committing fraud, the premium may rise or you may not have your policy renewed.
If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.

HOME INSURANCE: How to Buy & Save Money

1) How do I pick an insurance company?

There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:

a. Licensing: Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there's a problem. To find out which companies are licensed in your state, contact the state insurance department.

b. Price: Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet. Your state insurance department may publish a guide that shows what insurers charge for different policies in various parts of your state.

c. Service: Your insurance company and its representatives should answer your questions and handle your claims fairly, efficiently and quickly. You can get a feel for whether this is the case by talking to other customers who have used a particular company or agent. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.

d. Comfort: You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

2) How much will it cost?

There are many factors an insurance company uses to determine the price of your policy:

* The square footage of the house and any additional structures.
* Building costs in your area.
* Your home's construction, materials and features.
* Amount of crime in your neighborhood.
* The likelihood of damage from natural disasters, such as hurricanes and hail storms.
* The proximity of your home to a fire hydrant (or other source of water) and to a fire station, whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires.
* The condition of the plumbing, heating and electrical system.

If you rent your home or own a condo or co-op, your insurer will not consider the size of the dwelling or building costs. However, the insurance company will take into account factors that make damage to your possessions more likely.

3) How can I save money?

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here are some ways to save money.

a. Shop around:
Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. We provide comparisons of prices charged by major insurers.

b. Raise your deductible:
A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you save on your premium. Consider a deductible of at least $500. If you can afford to raise it to $1,000, you may save as much as 25 percent.

If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters. If you live near the coast in the East, you may have a separate windstorm deductible, if you live in a state vulnerable to hail storms, you may have a separate deductible for hail, and if you live in an earthquake-prone area, your earthquake policy may have a deductible.

c. Buy your home and car policies from the same insurer:
Most companies that sell homeowners insurance also sell car and umbrella liability insurance. (An umbrella liability policy will give you extra liability coverage.) Some insurance companies will reduce your premium by 5 percent to 15 percent if you buy two or more insurance policies from them. But make certain this combined price is lower than buying the coverage’s from different companies.

d. Make your home more disaster-resistant:
Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters and shatter-proof glass, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

e. Seek out other discounts:
Many companies offer discounts, but they don't all offer the same types of discounts or the same level of discount in all states. Ask your agent or company representative about discounts available to you. For example, if you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. If you've completely modernized your plumbing or electrical system recently, some companies may also provide a price break.

f. See if you can get group coverage:
Does your employer administer a group insurance program? Check to see if a home-owners policy is available and is a better deal than you can find elsewhere. In addition, professional, alumni and business groups may offer an insurance package at a reduced price. g. Stay with the same insurer:

If you've been insured with the same company for several years, you may receive a discount for being a long-term policyholder. Some insurers will reduce premiums by 5 percent if you stay with them for three-to-five years and by 10percent if you're a policyholder for six years or more. To ensure you're getting a good deal, periodically compare this price with the prices of policies from other insurers.

h. Look for private insurance if you are in a government plan:
If you live in a high-risk area-one that is especially vulnerable to coastal storms, fires or crime-and you've been buying your homeowners insurance through a government plan, find out from insurance agents, company representatives or your state department of insurance which insurance companies might be interested in your business. You may find there are steps you can take that will allow you to buy insurance at a lower price in the private market.

4)What information do I need to provide to my agent?

Your agent will ask you what kind of home you own or rent, roughly how much your possession are worth, and what kind of liability coverage you will need. The agent will also want to know how many people live in your household, what pets you own, and the general condition of your house. You should also tell him if you own any particularly valuable items that might need special coverage called a floater.