Home insurance claims are a fact of life. The whole reason you get coverage is to protect your assets. Getting the coverage is just one step. Do you understand what your policy covers and for how much? This might seem like a silly question but the fact is there are many homeowners who have a very rude awaking as to how much they are insured for. The first thing you should do if you don't understand your policy after reading it is having your insurance provider explain it to you. It's better to now where you stand before a disaster strikes. Ask away!

Some important questions to ask would be:

1. Are your belongings insured for replacement cost (the amount of money it would take for you to replace an item today), or actual cash value (the replacement cost minus depreciation)? This makes a huge difference when you are restocking lost items in your home.

2. Is your home insured for its replacement value? Some people cut corners in order to save some bucks and insure the home for half its replacement value or a fraction on the replacement value. When the time comes will you have enough money to rebuild if a catastrophe strikes?

3. What liability coverage