A method and computer system executes a home loss prevention simulation to provide a user with information on home loss prevention. The method and system may allow the user to select and place one or more home sensors on items and/or in locations within a simulated home environment. Once the user has finished selecting and placing the home sensors in the simulated home, the method and system may begin the home loss prevention simulation by applying different loss-related simulation scenarios to the simulated home. Based the different loss-related scenarios, the method and system may evaluate the placement of the home sensors in the simulated home to determine one or more losses (e.g., fire, water or burglary) and any associated financial costs. At the end of the simulation, the method and system may provide instructional information regarding the simulation results in order to educate the user on how to improve or optimize home loss prevention.