Your home is your most valuable asset. It is the place where you and your family live and keep all of your important possessions. If you lost your home and everything in it, your life would be interrupted. A homeowners insurance policy is important because it provides you with a level of financial security by protecting your house, your belongings, and your lifestyle.

Home insurance typically isn't required by law, but depending on your specific situation, you may be required to purchse a homeowners insurance policy. Mortgage companies and lending institutions usually require you to purchase insurance for your home, otherwise they will not approve you for a loan or refinancing.

Even if you do not have a mortgage or a loan for your home, homeowners insurance offers the best way to protect your investment, since you probably couldn't afford to rebuild your entire house if something happened to it.

Furthermore, many insurance companies will deny you coverage if you have a lapse in home insurance coverage of more than 30 days. Maintain consistent coverage to keep your premium low and your home insurable.

An Advocate can help you figure out the appropriate coverage for your situation. Click Here >>

Yes, home insurers can deny you coverage for a number of reasons, including: your location to the ocean or other large body of water, the age of your home and its construction type, the type of recreational equipment you own, and even the breed of dog that you have - just to name a few.

To learn more about being denied, click here for our guide to Problematic Homes.

Determining the amount of coverage you need for your home depends on the replacement cost required to rebuild your home. A replacement cost policy would pay you the amount of money it would take to replace your home using similar quality construction materials, without taking depreciation into consideration.

When determining your home's replacement cost, do not base it on the home's market value, original sale price, or tax assessment - as these values can be significantly lower than the cost of construction materials and labor needed to rebuild your home.

Also, consider personal liability when determining how much coverage you need. Personal liability insurance protects you and other members of your household if you are responsible for injuring someone or damaging someone else's property as a result of your actions or negligence. Injuries as a result of an auto accident are not included under personal liability because they would be covered under your personal auto policy.

To learn more about different coverages, click here for our guide: Understanding Your Policy Options.

Your policy should cover the total cost to rebuild your home, at today's construction and labor costs. If you do not have enough coverage to cover the total, you can be stuck footing the bill yourself. Thats why its important to accurately calculate the replacement cost of your home and purchase the necessary coverage. It will protect you financially if you experience a total loss.

Not sure what the replacement cost of your home is? Our Advocates use calculators provided by the insurance companies that take into account the most up to date materials and labor costs. You should also ask what happens if the cost exceeds the replacement cost. Different carriers have different policies. Click here to ask an Advocate >>

There are many different factors that go into determining your home insurance quote. While getting a quote, insurance agents will typically ask you about the following:

• Description of Your Home
• Geographical Location of Your Home
• Distance from the Nearest Fire Department and Hydrant
• Home Upgrades
• Total Square Footage
• Credit History & Insurance Score
• Security Devices and Alarm Systems
• Claims History & Prior Losses
• Type of Pets and Recreational Equipment

To learn about how rates are calculated, check out our guide: The Home Insurance Quote Process.

One way to make sure you are getting the best rate on homeowners insurance is by requesting quotes and comparing the prices of different insurers. It is best to request quotes from an agent that represents multiple companies, as each company offers different prices for the same amount of coverage.

When comparing homeowners insurance quotes, be sure that you are comparing quotes for the exact same coverages and benefits. Be careful not to confuse a market value policy with a replacement cost policy, as these are two completely different products.

If you can, avoid filing "small" claims for damages less than $3,500. Claims under this amount may actually cost you more in the long run because an insurance company can raise your rate for having multiple claims and could even cancel your policy. Choose higher deductibles to save money and prevent yourself from making smaller claims.

To compare multiple quotes in just a few minutes, click here to Request a Quote.

If something happens to your home, notify your home insurance company or agent immediately. Most insurance companies offer 24/7 claims reporting services - all you have to do is call a 1-800 number. Alerting the company immediately will help them start the necessary process to get your claim handled quickly, so you can go back to normal life.

Be sure to document the damage to your home with as much detail as possible. Take photos or video of the damage to better explain what happened to a claims adjuster. Document any items inside your home that were damaged and locate receipts if possible.

Also document all contact you have with your agent or insurance company's representatives. Make notes of your phone conversations, and make sure you are present when they inspect your home, so they don't overlook any damages.

Finally, understand that you don't have to agree to the insurance company's final settlement amount until you are satisfied with it and believe it to be fair. Feel free to get a second opinion from a trusted local contractor or other people who may be qualified.

There is a specific type of homeowners insurance written just for renters called the HO-4 or Tenants Form. It does not cover the actual building itself because the property owner would be responsible for insuring the structure. Renters insurance covers two primary things: contents and personal liability.

If the contents of your apartment or home are damaged for any of the covered reasons listed in your policy's terms, your renters insurance will cover the losses or damage to the items in your rented property, up to the amount you are insured for.

Personal liability insurance protects you and other members of your household if you are responsible for injuring someone or damaging someone else's property as a result of your actions or negligence.