dog or not? I know dogs are considered a liability but if my dog prevented an intruder from entered my home would he be considered an asset? Bottom line, when they ask if I have a dog, should I say yes or no.

I can not understand why the insurance company would even want to know about dog ownership.
Things must be a whole lot different in the US.

You must absolutely say yes. If you say no & have a claim & the company finds out about the dog & that you lied (especially if the breed is on their unacceptable list) about having it, the company can declare the policy null & void (meaning that if they knew about the dog, they would have never written the policy) & give you back all your premiums paid & be done with you. There would be no coverage for your claim.
It is way to risky to lie to an insurance company, it is known as misrepresentation & you will have to tell future insurers about the misrepresentation & you will have a difficult time finding another company.
So, be honest up front. Tell the agent the truth. Call around too, different companies have different rules about dogs, what they will take, what they won't, etc.

I would tell them that you have a dog, and tell them that you would be willing to sign a "canine exclusion form." Its just stating that they are excluding any type of claim that may occur if your dog were to cause damages.