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home owner insurance quoteThe examples and perspective in this article or section may not represent a worldwide view. Please improve the article or discuss the issue on the talk page.Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care. Principles of insuranceFrom the point of view of the insurance company there are four general criteria for deciding whether to insure events or not. Cheap Homeowner Insurance. 1. there must be a larger number of similar objects so the financial outcome of insuring the pool of exposures is predictable. Therefore they can calculate a "fair" premium. 2. the losses have to be accidental and unintentional from the point of view of the insured. Life. 3. the losses must be measurable, identifiable in location, time, and be definate. They also want the losses to cause economic hardship. That is, so the insured has an incentive to protect and preserve the property to minimize the probabilty that the losses occur. 4. Find An Agent. the loss potential to the insurer must be non-catastropic. It cannot put the insurance company in financial jeopardy. Losses must be uncertain. The rate and distribution of losses must be predictable: To set premiums (prices) insurers must be able to estimate them accurately. This is done using the Law of Large Numbers which states that: The larger the number of homogenous exposures considered, the more closely the losses reported will equal the underlying probability of loss. Business and personal insurance coverage glossary and resource. If the coverage is unique, the insured will pay a correspondingly higher premium. Lloyd's of London often accepts unique coverages. (e. g. Home family dental insurance healthcare insurance cheap moped insurance state farm auto insurance home insurance uk auto insurance ratings ca health insurance antique car insurance low cost insurance mercury car insurance car and insurance worldwide travel insurance automobile insurance quotes business travel insurance cheap ski insurance free health insurance quote very cheap car insurance life insurance no medical home owner insurance quote cheap auto insurance quotes young driver car insurance cheep car insurance cheap florida car insurance aarp health insurance nationwide auto insurance auto insurance california insurance policies long term care insurance leads bellevue auto insurance car insurance in uk |