June is celebrated as National Homeownership Month, a time to acknowledge the pride and excitement that comes with unlocking the door to your very own home. As thrilling as it is to step into homeownership, it's also a gateway into a world of new financial and insurance considerations. Your home is not just a haven, but a significant investment that requires careful planning to protect. This post dives into three essential insurance tips that every new homeowner should consider.

Understand Escrow and Insurance Premiums

Many homeowners opt to pay their insurance premiums through an escrow account managed by their lender. This can simplify monthly payments and ensure everything runs smoothly. If you receive a bill from your insurance provider, rest assured that your lender typically handles the payment. However, it's always wise to confirm with your lender if you ever have questions about payments to avoid any lapses in coverage.

Consider Additional Coverage

Your standard homeowner's policy might not cover certain scenarios. It's crucial to assess your coverage for potential gaps. For example, flood insurance isn't typically included in standard policies, so if you're living in an area prone to flooding, adding this to your insurance could be vital. Additionally, exploring options like umbrella insurance and reviewing your liability coverage can provide an extra layer of protection for your home and assets.

Review Your Life Insurance Coverage

Owning a home is often a time to reassess your life insurance needs. If you've upsized, additional coverage may be necessary to ensure your mortgage is fully protected should anything happen to you. Conversely, if you've downsized, you might find opportunities to reduce coverage, allowing you to adjust your policy to better fit your current financial situation. Evaluating your life insurance in the context of your new home ownership can help secure your financial future.

Ensuring you have the right insurance coverage is a foundational step in protecting your home and financial future. Don't hesitate to reach out to a professional for a policy review or consult with a financial expert for personalized guidance tailored to your new role as a homeowner.