Homeownership Month: Essential Insurance Tips for New Buyers

Celebrate National Homeownership Month!

June is a special month for many reasons, and one standout is that it's National Homeownership Month. Whether you've recently purchased your first home or are planning to in the near future, congratulations! Homeownership is not just a major milestone in life but also a significant responsibility, particularly when it comes to financial and insurance aspects.

Here, we'll share three vital insurance tips to aid you in protecting your investment and ensuring peace of mind.

Consider Additional Coverage

When you buy a home, it's crucial to understand that standard homeowners insurance policies might not cover everything. You might want to explore options like liability coverage, umbrella insurance, and specifically, flood insurance, which is often not included in typical homeowners policies. Assess your risk level for natural disasters and add coverage if needed to ensure complete protection.

Understand Escrow and Insurance Premiums

Many homeowners pay their insurance premiums through an escrow account managed by their lender. This can simplify your financial management, as your lender typically handles the payment, even if you receive a bill from your insurance provider. Should you ever have questions about payments, it's always a good idea to check in with your lender to clarify any concerns.

Review Your Life Insurance Coverage

Owning a home often prompts a re-evaluation of life insurance needs. If you've moved into a bigger space, you might require additional coverage to ensure your loved ones can manage the mortgage in case of unforeseen circumstances. Conversely, if you've downsized, adjusting your coverage could benefit your financial situation. Revisiting your life insurance policy is a practical step to better align with your new home ownership.

The importance of understanding and choosing the right home insurance can't be overstated. It’s integral to safeguarding both your home and your financial future. Don't hesitate to reach out for a comprehensive policy review or consult with a financial expert for personalized guidance.