When To Report Changes To Your Homeowner's Insurance Agent

How long has it been since you've updated your homeowner's insurance policy? Many homeowners make the mistake of setting up the policy, paying the monthly premiums and never giving it another thought. If you're one of these folks, you could be cutting yourself short on coverage—you may not get the payout that you need to rebuild and replace all of the belongings in your home. Here, you'll find a few instances in which a call to your home owner's insurance agent is warranted.

Updates to the Home

Have you made any updates to the home that have increased the value? If so, you need to report those upgrades to your insurance company.

If your kitchen was to catch fire and you didn't report that you've upgraded the countertops and cabinets, you won't receive the payout that you need to replace what you've invested. The higher cost of materials require a higher limit insurance policy.

Any changes that have increased the value of your home should be noted to the policy—this will give the insurance agent a clear picture of the home's value and how much insurance you will actually need to replace and rebuild.

Wood Burning Stove Addition

If you install a wood, coal or pellet burning stove, you must contact your homeowner's insurance agent and report the change. If there was to be a fire that was caused by the wood burning stove, the insurance company could deny the claim for damages. This is because you didn't report that the stove has been added so that the insurance policy could reflect the use of the stove. When you add a wood burning stove to the home, you increase the chances of a fire, so you may see a slight increase in your premiums.

Purchase of Valuables

Have you been purchasing things of great value? Jewelry, guns, coins, antiques, and other valuable items must be reported to the insurance company if you want to ensure that they will be insured if something should happen to them.

In most cases, there are limits to how much a homeowner's insurance policy will cover when it comes to this kind of stuff. For example, if you own a gun that's worth $2,500, you may not get a payout for that much unless you add a rider to the policy. Riders can be added to your policy to cover the items that are capped on a basic policy.

Talk with a homeowner's insurance agent to learn more about what changes need to be reported to ensure that you're insured.