June is not only a perfect time for barbecues and beach trips, but it's also National Homeownership Month—a moment to celebrate the excitement and milestones of becoming a homeowner. While homeownership is indeed thrilling, it also comes with significant financial and insurance responsibilities. To help you safeguard this major investment, let's explore three essential insurance tips every new homeowner should consider.
Consider Additional Coverage
Standard homeowner policies may not cover everything you're exposed to. It's wise to review your policy's liability coverage, consider umbrella insurance for broader protection, and evaluate the need for flood insurance. Keep in mind, flood insurance is usually not included in standard policies. Assess your risk level, especially if you live in a flood-prone area, and add coverage accordingly to ensure your home is well-protected.
Understand Escrow and Insurance Premiums
Many homeowners manage their insurance premiums through an escrow account handled by their lender. It's essential to understand how this works. Even if an insurance bill lands in your mailbox, rest assured your lender typically makes the payment on your behalf. However, if you ever have questions regarding the status of your payments, it's prudent to double-check with your lender.
Review Your Life Insurance Coverage
Acquiring a new home is a prime opportunity to reassess your life insurance needs. Should you upsize, you may need increased coverage to fully protect your mortgage. Conversely, if you've downsized, this might be the perfect chance to reduce your coverage and adjust your policy according to your current financial situation, ensuring it fits seamlessly with your new lifestyle and obligations.
Understanding home insurance is crucial for safeguarding your home and financial future. It's always a good idea to conduct regular policy reviews or consult with a financial expert for personalized guidance. Don't leave your peace of mind to chance—take these steps to protect your new home now, and sleep easier knowing you’re covered.