Celebrating Homeownership Month
June marks National Homeownership Month, a time to celebrate this significant life milestone. Owning a home brings immense joy and fulfillment, but it also introduces new responsibilities. As you settle into your new abode, safeguarding your investment through insurance is crucial. Here, we'll explore three vital insurance tips every new homeowner should consider. Review Your Life Insurance Coverage
Buying a home is a major life event that often necessitates a reassessment of your life insurance. If you've upsized, it might be time to increase your coverage to ensure your mortgage is fully protected in the event of unforeseen circumstances. Conversely, downsizing could allow you to reduce coverage and adjust your policy to better fit your financial situation. Regularly reviewing your life insurance ensures you maintain the right level of protection for your new home investment. Understand Escrow and Insurance Premiums
Many homeowners manage their insurance payments through an escrow account, which is typically handled by their lender. This system allows for the seamless payment of insurance premiums as part of your monthly mortgage payment, giving you peace of mind. However, it’s not uncommon to receive a direct bill from your insurance provider. If this happens, don’t panic. Your lender generally takes care of these payments. Always feel confident in reaching out to your lender if you have any concerns about the payment process. Consider Additional Coverage
Standard homeowners' insurance policies often fall short of covering all potential risks. It’s wise to review your current policy and consider additions like liability coverage, umbrella insurance, and especially flood insurance. Flood damage is not included in most standard policies, so assessing your area’s risk and opting for flood coverage could be essential for comprehensive protection. Taking these steps ensures that you're better prepared for the unexpected.
Understanding and updating your insurance as a new homeowner protects your home and financial future. For personalized advice, don't hesitate to reach out for a policy review or consult with a financial expert to tailor these strategies to your needs.
