Spring and summer are some of the busiest months for real estate transactions and one of the biggest parts of any home sale is the right insurance.

"Homeowner's insurance is basically a contract that is issued by an insurance company and it protects your home, any out buildings you have on your property, and any personal possessions you have in the home," said Mary Gregory, CPCU/NYCM Insurance Marketing Representative. "It also covers liability in the event that you are held responsible for damage to someone else's property. Your homeowner's insurance is a twelve month policy. They renew every year. "

Having insurance protects you against a range of events.

"Your house catching on fire or you have a severe windstorm come through and you lose your entire roof," Gregory said. "These catastrophic events could have huge impacts on your life and your family's life. Also, it protects you against thefts, break-ins."

There are many factors that will influence how your rate and cost are calculated.

"Your insurance company will look at several things but the main ones are the age of your house, how old you are, the area you live in, how close you are to water, if your home has been updated or not," Gregory said. "Those are the major things."

If you buy a house and secure a mortgage for it, the bank requires you to have insurance. But with such a lengthy process, when does it to start to cover your new home?

"You own that house as soon as the title and the closing papers are signed," Gregory said. "So you may not have even moved into that home and unfortunately something terrible comes through, if it's the next day, your homeowner's insurance will cover it."

Just as you would with everything from your furnace to your furniture, you can also shop around for homeowner's insurance to find the right deal and company for you.

For more information you can visit the NYCM Insurance website.