Celebrating National Homeownership Month

June marks National Homeownership Month, a time to celebrate the joy and achievement of owning a home. For new homeowners, this is a period filled with excitement, but it also brings a set of responsibilities that extend beyond just enjoying your new space. Owning a home is a significant milestone, both personally and financially, and it requires a careful approach to various obligations, including home insurance. In this post, we'll explore three essential insurance tips to safeguard your investment.

Review Your Life Insurance Coverage

Purchasing a home often means a change in one's financial situation. If you've recently upsized, your new mortgage may necessitate increased life insurance coverage to ensure the mortgage can be fully paid off in the event of unforeseen circumstances. Conversely, if you've downsized, it might be an opportunity to reduce your coverage and lower your premiums. Take the time to reassess your life insurance needs and ensure your policy caters to your current financial situation.

Consider Additional Coverage

While a standard homeowner's insurance policy provides a baseline of protection, it may not cover all possible scenarios. It's wise to look into additional coverage options like liability insurance, umbrella insurance, and notably, flood insurance. Most standard homeowners policies do not include flood insurance, making it vital to assess your risk and obtain the necessary coverage. Ensuring you have comprehensive protection can ease future worries and protect your financial wellbeing.

Understand Escrow and Insurance Premiums

For many homeowners, insurance premiums are managed through an escrow account set up by their lender. This setup involves the lender collecting payments throughout the year and paying the insurance bill on the homeowner's behalf. If you receive an insurance bill directly, don't worry—it’s often just routine communication. However, always double-check with your lender if you have any concerns about whether payments are being made on time. Understanding home insurance is a crucial step in protecting your assets and securing your financial future as a homeowner. If you haven’t already, consider reaching out for a policy review or consulting a financial expert to tailor your coverage to your needs. By taking these proactive steps, you can enjoy your new home with peace of mind.