Celebrating National Homeownership Month
June marks National Homeownership Month—a time to celebrate the joy and responsibility that comes with owning a home. For those embarking on this new journey, becoming a homeowner is undoubtedly a significant milestone. However, it also brings new financial and insurance responsibilities that require attention and understanding. To safeguard your investment, we're sharing three key insurance tips specifically for new homeowners.
Consider Additional Coverage Options
While standard homeowners policies cover a myriad of scenarios, they don’t provide complete coverage for every possible situation. It's crucial for homeowners to evaluate additional coverage options to better secure their financial future. Assessing liability coverage, umbrella insurance, and especially flood insurance can prove invaluable. Most standard policies do not include flood insurance, despite its importance. Therefore, evaluating your area's flood risk and adding necessary coverage can protect you from unforeseen expenses.
Understand Escrow and Insurance Premiums
Many homeowners find themselves paying their insurance premiums through escrow accounts managed by lenders. It's a common practice that simplifies the payment process as your lender typically manages the premium payments. If you receive a bill directly from the insurance provider, rest assured, your lender will likely handle it. It’s always wise, however, to double-check with your lender if any payment questions arise, ensuring that your insurance remains active and updated.
Review Your Life Insurance Coverage
Purchasing a home often transforms your financial landscape. As a new homeowner, reassessing your life insurance coverage is essential. If you've upsized, you might need increased coverage to thoroughly protect your mortgage. Conversely, downsizing may afford the opportunity to reduce coverage and adjust your policy according to your current financial situation. Regular reviews of your coverage ensure that you are neither underinsured nor overpaying for coverage you no longer require.
Embracing the journey of homeownership is exciting, and understanding the nuances of home insurance is pivotal to protecting your home and financial future. We encourage you to reach out for a policy review or consult with a financial expert to receive personalized guidance tailored to your situation.