Three Key Insurance Tips for New Homeowners

June marks National Homeownership Month, a time to celebrate the excitement and achievement of owning a home. For many, buying a home is a major milestone, bringing with it a mix of excitement, challenges, and responsibilities, particularly in the financial and insurance domains. To aid in navigating this important life stage, we've compiled three crucial insurance tips to help you safeguard your new investment.

Understand Escrow and Insurance Premiums

Many new homeowners find themselves puzzled when it comes to paying their insurance premiums. Generally, these payments are made through an escrow account managed by your lender. This account also handles your property taxes, rolling them into your monthly mortgage payment. If you receive a bill directly from your insurance provider, don't panic. It's typically just a formality, since your lender usually handles these payments. However, if any questions arise concerning these payments, it's always wise to verify with your lender to ensure everything is in order.

Review Your Life Insurance Coverage

Owning a home often means it's time to reassess your life insurance needs. If you've upgraded to a larger home, increasing your coverage ensures your mortgage is protected in the event of an unforeseen tragedy. Conversely, if downsizing was part of your move, you may be able to adjust your coverage to better align with your current financial landscape. Regularly reviewing and updating your life insurance policy is an essential step in securing your family's financial stability.

Consider Additional Coverage

Standard homeowners policies provide a foundation of protection, but they may not cover all potential risks. It's wise to carefully evaluate your liability coverage and consider options like umbrella or flood insurance to ensure comprehensive protection. Remember, flood insurance is not typically included in standard policies, so assessing your risk level and adding coverage if necessary can be pivotal in truly safeguarding your home.

As you embark on the journey of homeownership, understanding your insurance needs is crucial to securing your investment and financial future. If you're uncertain about the specifics of your policy, or feel it's time for a thorough review, reaching out to a professional for a policy assessment or to a financial expert for personalized guidance can provide invaluable peace of mind.