No, unlike auto insurance, home insurance is not mandatory, but it is generally a good idea to have some level of coverage on your home.
This largely depends on the specifics of the policy you have. Be sure to look through the details on the policy before finalizing it so you understand exactly what is covered and what is not.
Each person has a different risk tolerance level. The more coverage you want, the higher the monthly premiums will be; conversely, the lower the premium, the less coverage you will have. The exact level of coverage each person needs will depend on the value of your home and the amount of risk you want to take on.
There are many ways of achieving this, including but not limited to: smoke detectors, fire alarms, alarm systems, heavy duty locks, video monitoring, fire proofing, using non flammable building materials, etc.
No, home insurance is not tax deductible.