Insuring the home against catastrophic financial losses, such as fire and storm damage, is a common practice for Americans. In fact, mortgage lenders typically require the homes they hold as collateral to be adequately insured as a way for them to protect their financial interests until the loan is paid off. According to recent information provided by the insurance industry, nearly seventy million American homes are covered by some type of home insurance. But even though this number means that most homes have some type of insurance coverage, homeowners who have not worked closely with their agent to update their policy as needed may find themselves unpleasantly surprised when a loss actually occurs. 

When making changes to the home

Homeowners who plan to make some types of improvements, updates, or repairs to their home should always start by discussing their situation with their agent. In some cases, improvements like updating the electrical panel or installing better windows may help lower the cost of the coverage premiums because the improvements reduce the risk of some types of losses, such as electrical fires or storm damage. Before making any changes to your home, take time to discuss your plans with your home insurance agent to see what effect the work may have on your coverage. 

When the time to pay the annual premium rolls around

Rebuilding or repairing a home after a loss is an expensive process and in most areas of the country, these costs can increase significantly over time. Homeowners who find themselves simply paying their annual premium each year without updating their coverage amount can find themselves taking a huge financial hit when a loss actually occurs. To avoid this, homeowners should always discuss their policy with their agent each year at renewal time and make sure that the amount of coverage they have is still sufficient to rebuild or repair their home, should they experience a covered loss. 

When adding a family dog

Before adopting a family dog, homeowners are encouraged to contact their home insurance agent to make sure that doing so will not create issues with their home insurance coverage. In many areas of the country, dog breeds such as American Pit Bull Terriers, Dobermans and many others are considered aggressive and may cause home insurance coverage rates to increase dramatically or cancellations of coverage to occur. To be safe, homeowners should always contact a home insurance agent, such as at Lanham Insurance Agency, before adding a new dog to their family.