Homeownership Month: Key Insurance Tips for New Owners

Welcome to Homeownership Month

June marks National Homeownership Month, a time to celebrate the journey of buying your home—a major life milestone. While it's certainly exciting, the various responsibilities accompanying homeownership, particularly those related to insurance, should not be overlooked. This article will provide you with three essential insurance tips that will help you safeguard one of your biggest investments.

 

Review Your Life Insurance Coverage

As you step into new homeownership, it's crucial to reassess your life insurance needs. If you've upgraded to a larger home, you might need to increase your coverage to ensure your mortgage is adequately protected. Conversely, if you've downsized, you might have an opportunity to decrease your coverage, thus adjusting your policy to better fit your current financial situation. Don't overlook this important step—it can significantly impact your family’s financial security.

 

Understand Escrow and Insurance Premiums

Many homeowners pay their insurance premiums through an escrow account managed by their lender. This setup helps streamline the payment process by combining your mortgage payments with insurance premiums and property taxes. Even if you receive a direct bill from your insurance provider, rest assured, your lender typically handles these payments for you. It's always a good idea to double-check with them if you have any concerns or questions about payment arrangements.

 

Consider Additional Coverage Options

Standard homeowners insurance policies often offer coverage basics but may not include everything necessary to fully protect your home. Take the time to review your policy and consider additional options such as liability coverage, umbrella insurance, and flood insurance. It's important to note that flood insurance is generally not included in standard policies, so assess your risk level and consider adding it if required. Understanding these aspects of home insurance is vital in protecting both your home and financial future. For any uncertainties, consider reaching out for a policy review or consulting with a financial expert who can provide personalized guidance.