Celebrate Homeownership Month with Savvy Insurance Choices

June is National Homeownership Month, a time to recognize and celebrate the joys and responsibilities of owning a home. For new homeowners, this milestone brings a mix of excitement and challenges. It's not just about creating a space that reflects your personality but also managing the financial and insurance aspects to protect your investment. In this blog post, we'll explore three key insurance tips that every new homeowner should consider.

Consider Additional Coverage

Many new homeowners assume that their standard homeowners insurance policy covers everything, but this is often not the case. It's crucial to assess whether additional coverage is necessary. For example, standard policies usually do not include flood insurance. If you live in an area prone to flooding, evaluating your risk and adding flood insurance can be a wise decision. Additionally, reviewing your liability coverage and considering umbrella insurance could offer you an extra layer of protection. These steps can help ensure that you're fully protected against unforeseen circumstances.

Understand Escrow and Insurance Premiums

If your home was purchased through a mortgage, it’s likely that your insurance premiums are paid via an escrow account managed by your lender. This means while you'll receive an insurance bill, the lender usually takes care of the payment. Should you ever question how this process works or suspect a discrepancy, it’s a good practice to consult your lender for clarification. Keeping open communication ensures there are no surprises and that your premium payments are always up-to-date.

Review Your Life Insurance Coverage

Buying a home is often a significant financial change, which might mean reevaluating your life insurance needs. If you've upsized, your mortgage is likely larger, and you should consider increasing your life insurance coverage to fully protect this new debt. Conversely, downsizing might allow you to reduce your coverage, thus tailoring your policy to fit your current financial situation. Regular reviews of your life insurance policy with these considerations in mind can help secure your family's financial future. Homeownership is a rewarding journey, and understanding your insurance needs plays a crucial role in safeguarding your home and financial future. For personalized guidance, consider reaching out to an insurance professional who can help tailor a policy review to your specific requirements.