Home insurance basics include insuring your home for the full replacement cost and considering additional coverage for floods, earthquakes, or other disasters. Having a mortgage requires purchasing homeowner's insurance. When applying, insurers will check your personal information, credit, and claims history to assess risk. Determining premium costs involves factors like the home's age, materials, location, size, and distance to fire hydrants. Replacement cost coverage pays to fully rebuild, while actual cash value pays current value minus depreciation. It's important to document possessions through photos, videos and receipts. Separate flood and earthquake policies may also be necessary depending on location.