Before you purchase home owners insurance it is important to call around to find who can offer you the best coverage at a price that you are willing to pay. You would not buy the first car that you come across at a dealership without first checking elsewhere , why shouldn’t selecting an insurance company be dealt with the same way?

Home insurance is important whether you lease, rent, or currently own a home. Finding a good insurance company on the other hand, might be a little tougher than you would imagine. There are so many different companies around the country that offer insurance that it is no surprise that they all offer basically the same insurance policy, but at much different prices. This is why most companies have offered to give you a free quote right over the phone. With one simple phone call they can analyze your current situation and have a rough estimate prepared for you. Even if you get a quote that is a little higher from company to company it is important to keep this information handy, because if they feel that you are not interested in their services, they may try to work with you to get those numbers low. If an insurer knows that you are not interested in the prices that they are offering, they may even start lowering the price or giving you discounts to gain your business.

The free home insurance quote is a great feature that many insurance companies are offering to everyone that is willing to become a customer. Even if you do not become a customer, they will still offer it free. It gives you a chance to shop around and make a very informed decision as to where you should consider purchasing your home insurance from. A free quote can be just what you need to insure you that you are saving every possible cent. This free tool should not be overlooked.

View our Recommended Home Insurance Company, a simple site that has an easy to fill out application. It also has a lot of great info about Car Insurance Quotes and Affordable Health Insurance

These days, simply being careful while out and about with your bike and using safety gear is not the only protection you need! Motorcycles have a far higher rate of accidents per unit distance than cars. This is due to the exposed rider and the fact that many automobile drivers fail to see these smaller vehicles in the traffic stream.

Also, as the law and lawsuit trials become more and more complicated, you might even end up paying for the guy who was talking on his sell phone while driving, failed to see you and pushed you in the ditch. Of course, he had a good lawyer. And you, … well, your brand new bike is bits and pieces, not to even mention being hurt from the fall.

So, you either cough up few thousand dollars for the medical bills and fixing your bike, or contact your insurance to take care of the bill. Your motorcycle is a major investment, one that is certainly worth protecting. Making a smart insurance decision is crucial for your protection and protection of your motorcycle.

However, choosing the right insurance policy for you is much more like choosing the right bike. You want it to fit your lifestyle, but at the same time you want it to fit your budget.

And, better coverage does not necessarily mean paying more for your insurance. Based on your motorcycle, driving history, and location, instead of getting the best rate from one company, you’ll need to contact more insurance companies and get their best rates for your coverage. And the key to finding which coverage is best for you involves learning about all of the available options.

Although most US states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. Always ask your insurance representative about which laws apply in your state or city.

Let’s look at the different options.

Liability coverage

In many countries, liability insurance is a mandatory form of insurance since you’re at risk of being sued by the injured party being involved in the accident. Most US states require motorcyclists to carry a minimum amount of liability in case of third party injuries, however insurance experts recommend purchasing as much as three times the minimum in these times of expensive litigation. Liability coverage protects you if you (or another person driving your car with your permission) injure or kill someone or damage property. Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident, up to the limit of liability you select. It doesn’t cover you or your motorcycle. But it gives you a protection from a lawsuit. Also, find out if your coverage includes Guest Passenger Liability, which provides protection in the event that a passenger is injured on the motorcycle. It depends on the laws of your state and the company issuing the policy.

Collision coverage

While the liability coverage is required by law, in many cases collision coverage is optional. Why, you might ask? Collision coverage is the one that pays for the damage to your motorcycle, not the other guy’s, and it’s optional? We’ll let the lawmakers protect the other guy while you need a collision coverage to pay for the damage to your motorcycle when you collide with another vehicle or object. It covers the cost to repair or replace your motorcycle, regardless of who is at fault. You select a deductible, and once the deductible is met, the insurance company pays for the remaining damage. Collision insurance usually covers the book value of the motorcycle before the loss occurred – factory parts. If you get fancy and add anything extra?like nifty chrome accessories, a custom paint job – additional coverage will be required for compensation.

Comprehensive coverage

Comprehensive coverage pays (less the deductible) for damages caused by circumstances other than accident, such as vandalism, fire or theft. And again, it covers only the book value of the motorcycle.

Uninsured motorist coverage

If the knucklehead who hit your bike is uninsured, this insurance will cover damages you incur that the at-fault party is legally liable for, such as medical treatment and lost wages. Despite laws requiring insurance in practically every state, a lot of people are still driving without even basic liability coverage. The uninsured motorist section of your policy protects you if you or your passenger is hurt by one of those people. If your uninsured motorist coverage includes property damage, then your motorcycle would also be covered under the same circumstances ? covering for damage to your motorcycle caused by someone who does not have insurance. Check with your insurance to see if property damage is included or needs to be purchased separately.

Underinsured motorist coverage

Underinsured motorist coverage is similar to the uninsured motorist coverage. This coverage reimburses you if the person who hit you doesn’t have enough insurance to cover for all of your damages. If your injury expenses exceed the at-fault person’s liability limits, you can use Underinsured Motorists Coverage to pay for the amount not covered by the person’s insurance. Underinsured Motorists coverage is designed to cover the gap between the other person’s liability limits and the amount of your injury expenses. The trick is that in order for this coverage to kick in, the other driver has to be declared at fault. In most states, when blame is in doubt or the amount payable is contested, you and your insurer have to submit your differences to arbitration.

Medical payments coverage

Medical Payments coverage pays the cost of necessary medical care you receive as a result of a motorcycle accident and can be used regardless of who is at fault. This coverage often is limited. Check with your insurance company for the specific dollar amount and the number of years that they will cover after the accident. In some states, medical payments coverage only applies after other medical insurance is exhausted.

Custom parts and equipment

This coverage is an addition to your Comprehensive or Collision coverage. When you have custom parts and equipment on your motorcycle, you can purchase this Additional coverage to cover equipment, up to a dollar amount defined by the insurance company. Ask your insurance for the specific custom parts and details that they are willing to cover. Recommendation: retain photos of the motorcycle and all the receipts for your custom parts and equipment.

Roadside assistance

Roadside Assistance coverage provides towing to the nearest qualified repair facility and necessary labor at the place of disablement when your motorcycle is disabled due to reasons defined by the insurance company. Roadside Assistance is sometimes included with your Comprehensive coverage at no charge. Ask your insurance agent. If not, in most cases the Roadside Assistance coverage can be purchased at a nominal fee.

Many factors can play a role in determining what your insurance costs will be, such as your age, your driving record, where you live and the type of motorcycle you own. Unless you’re high risk, there are ways to keep your costs down so you won’t have to pay very high rates. Many companies offer discounts from 10 to 15 percent on motorcycle insurance for graduates of training courses.

In many northern states, riders may save money by buying a lay-up policy. With a lay-up policy, all coverage except comprehensive is suspended during winter months.

For most detailed information and extensive resources on motorcycles, please visit http://motorcycle.bestinfo4you.com.

As the water began to drain from New Orleans in 2005, we learned that most of the homeowners in New Orleans did not have flood insurance, since they were supposedly in ?low risk? areas. The over 60% of homeowners will need to depend upon their own savings, and limited federal assistance, to rebuild New Orleans ? at an uncalculated cost for homeowners and taxpayers.

Could that level of disaster, especially that level of uninsured disaster, happen in California? Less than 15% of California homeowners currently carry earthquake insurance, due to its high cost, the ?can?t happen to me or my house? factor, and mortgage providers not requiring coverage. The next big quake will result in billions of uninsured damage ? but is earthquake insurance really worth the high cost?

How Did We Get Here?

The state of California requires that all homeowner?s insurance providers to at least offer earthquake insurance (albeit, at a high cost). Until 1994, it was widely available ? but the high damage costs of the Northridge earthquake resulted in 97% of homeowner?s insurance providers pulling out of the state the California. In response, the California Earthquake Authority was formed by the California legislator to provide earthquake insurance.

What Is the California Earthquake Authority, and How Does It Work?

The California Earthquake Authority provides two-thirds of the earthquake policies in California, sold through their member providers, like Allstate and State Farm. A homeowner purchases the policy through their regular insurance agent, but the policy is actually a CEA policy.

The CEA currently has about $7.2 billion to pay claims, which it states is enough to pay foreseeable damages (Loma Prieta in 1989 had $6 billion in total damages). If the damage claims are more than $7.2 billion, then each claim would be paid a prorated portion of their losses ? unlike a regular insurance company, which promises to pay the actual damages under the insurance policy. The state of California cannot help pay the claims out of general funds.

The policies also have a high deductible ? usually 15% of the value of the dwelling. In other words, your home must be damaged more than 15% of its value before the insurance starts paying. So, this insurance is not for cracks in the driveway ? it is for significant structural damage to your home. The policy also pays for limited contents (starting at $5K) and loss of use (starting at $1500).

Why Is Earthquake Insurance So Expensive?

Insurance policy premiums are calculated based on probabilities ? the probability that a house like yours in a neighborhood like yours will catch fire, or a driver like you will have an accident. With data from millions of homes, these probabilities can be calculated with reasonable accuracy. But, no one can reliably predict the probability that there will be an earthquake strong enough to damage your home.

And, as you can imagine, damages from an earthquake, flood, or hurricane, are widespread, over potentially thousands of square miles ? instead of one or a few dozen homes, as in a fire. As such, the insurer would have to pay either zero claims, or billions of dollars of claims ? too much variance to reasonably plan for or price accurately.

Are We Really At Risk Here in San Jose?

According to the USGS, there is a 62% probability that there will be an earthquake of 6.7 or greater (like the Northridge quake) in the Bay Area in the next 30 years. In my zip code (San Jose 95126), USGS calculates a 80% chance of a 6.0 earthquake and a 20% chance of a 7.0, in the next 30 years. Whether you consider that to be a high risk depends on your risk tolerance for earthquakes ? I consider that a high risk of a moderate earthquake and a somewhat low risk of a terrible earthquake, over the next 30 years.

But like any issue involving real estate ? it is all local. Where your home is actually located significantly affects your risk ? bedrock, reclaimed land from the bay, soil type, nearby streams, actual distance from the epicenter ? all can affect potential damage.

But of course, many earthquakes occur where the USGS was not even aware of a fault line ? and we never know when or where it will happen, until it happens.

Should I Obtain Earthquake Insurance?

Factors to Consider:

• Could you afford to pay for the rebuilding your home from your own savings & investments?
• Can you afford to pay the high cost of insurance, indefinitely?
• Could make payments on your current mortgage and on a new loan to rebuild?
• Can you mitigate your potential losses by bolting your roof to the walls and the walls to the foundation, for example?
• What is your tolerance for the risk of an earthquake?
• What is the risks of your current home construction (type, age, foundation)?
• What are the risks of your specific location (soil type, distance to known faults)?

Are the Costs Worth It?

Let?s assume that you have a home that would cost $250K to rebuild, you will own the home for the next 30 years, and your earthquake premiums are $1200 per year. Over the next 30 years, that would be a total of $36,000 in premiums (assuming your premiums do not increase, to simplify calculations).

Instead of purchasing insurance, you invest the premiums in a diversified mutual fund. With an 8% annual return, you would have $135,000 (pre-tax) in year 30.* But of course, you only have that total in year 30, not in year one ? meaning that if the earthquake happens tomorrow, you don?t have the money.

The deductible is another big turn off for many homeowners. The insurance pays only for large structural damage, not broken dishes or cracked driveways ? meaning that it is less likely you will use it. However, be aware that you will not need to come up with the cash for the deductible ? you may either opt to not undertake those repair or rebuilding costs, or you can apply for an SBA loan to pay for the deductible (assuming a federal disaster area is declared).

Why Not Just Get Federal Aid, or ?Walk Away? and Let the Bank Have the Property?

The federal government would probably provide access to SBA loans, if the area is declared a federal disaster area (no small business required). However, the $200K maximum SBA loan may not be enough to rebuild your home ? and, it is a loan that you need to pay back (in addition to your current mortgage).

If you have refinanced your mortgage, you have a recourse mortgage ? which means that not only can the bank foreclose on the property in case of non-payment, the bank can also come after your personal assets and future income in case of non-payment. So you cannot just walk away, especially if you have a good income and some personal assets. The bank may help out by deferring payments for a few months, but you still must pay back the loan.

Last Thoughts

We have earthquake insurance on our home. Our home was not yet built in the 1906 earthquake (so who knows if it would stand), it is 75 years old and is not bolted to the foundation, and we have a refinanced mortgage. For my family, the insurance premiums are worth peace of mind in case of a major earthquake disaster. That?s exactly what insurance is for ? the ?you never know.?

*calculations ignore inflation

Elizabeth Potts Weinstein, JD, a licensed attorney and Registered Investment Advisor, is the founder of Potts Weinstein Financial Consulting, a financial and estate planning firm, headquartered in San Jose, California. The firm specializes in providing fee-only, hourly financial planning, estate planning, and investment advice for people from all walks of life and income brackets. For more information about Potts Weinstein Financial Consulting, or to subscribe to our monthly eZine ‘Prosper!’, please visit http://www.pottsweinstein.com