Small-business owners occasionally make renovations to the buildings in which they operate. They may redesign office space, add warehouse and storage capabilities, etc.

These may be great signs of success and growth. But too often, business owners forget to tell their insurance agents. It's important for agents to know because the original insurance contract may not cover the changes.

Additionally, small-business owners should be aware that their purchase price or the current market value of a building isn't the formula to determine how much coverage to carry. Inflation, local construction costs, building location and more all factor into determining the replacement cost of the building.

Replacement cost, or insurance-to-value (ITV) insurance, helps insureds avoid costly coinsurance penalties and assures proper compensation to rebuild. Business interruption, temporary extra expenses to keep the doors open and contents coverages work the same way.

Insurance agents need to know about equipment and furniture purchases and seasonal fluctuations in inventories or sales in order to give you the best advice about coverages and amounts you should carry.