Putting market value first is a bad idea simply because the value of your home can go up and it can go down, depending on what the economy is doing. For example, the interest rate changes, the demand for housing in your area changes, today it could be a buyers market and tomorrow it's a sellers market.

However, using replacement cost; which is the amount it would take to replace or rebuild your home at the current price offers you the most protection, no matter what the current housing market is doing.

Have your insurance agent sit down with you and determine how much coverage you currently need to replace your home. And do the same with your personal property, to protect your personal possessions should you experience a fire or other natural disaster.

Other items to look for in your guaranteed replacement cost policy. Does it include a "building code endorsement? A building code endorsement guarantees the rebuilding of your home by the current building codes.

Not by previous building codes, an important detail to know. So be careful, especially when you run into a too-good-to-be true low cost policy. Make sure you read the fine print.

The best way make sure you're getting the most for your money is to compare policy cost with several insurance companies at least one a year. Because policies are constantly changing.

Other issues to consider. Should you buy depreciated or full replacement cost personal property insurance? Let's take a few seconds to examine both to see which one might best fit your needs.

Depreciated replacement cost personal property insurance is the replacement cost of an item minus accrued depreciation (or the loss of value since you purchased it).

And of course, full replacement cost personal property insurance is the cost of fully replacing the loss of an item.

The choice you make or fail to make can determine the cost of your policy. So go over these points with a qualified insurance professional.

With insurance, you get what you pay for. To fully protect yourself without over-paying for insurance you don't need , you must make it a point to stay informed.

Here's 12 Ways to Help Protect Your Home From Loss

1. Make a list of valuable items in each room.

2. Write down product serial numbers if they have them.

3. Take photos or video's of valuable possessions in each room.

4. Give your home a "someone may be home" look to potential burglars.

5. Keep garage doors closed and locked when not in use.

6. When away on vacation leave a radio on. It signals that someone is home.

7. Keep shrubs around doors and windows trimmed; don't give burglars a hiding place.

8. Set timers to turn on lights in different rooms at different times of the night.

9. Leave shades and drapes open in the day to make home look occupied.

10. Have someone you trust check your home daily when you're away on vacation.

11. Install outside lighting with motion detector.

12. Join or start a neighborhood watch program on your block. 

These 12 tips will help you avoid loss. But if you have to file a claim it will make filing an insurance claim quicker, smoother and with less stress.