June is National Homeownership Month—a time to celebrate the significant achievement of owning a home. While becoming a homeowner is an exciting milestone, it also brings new financial and insurance responsibilities. Making sure you have the right insurance coverage is crucial to safeguarding your investment. In this blog post, we’ll explore three vital insurance tips that every new homeowner should consider to protect their home and financial future.

Understand Escrow and Insurance Premiums

Many homeowners pay their insurance premiums through an escrow account managed by their mortgage lender. If you receive a bill from your insurance provider, it’s typically for your records—your lender usually takes care of the payment directly. Nevertheless, if you're ever in doubt or have questions about your payments, don't hesitate to double-check with your lender to ensure everything is on track. Understanding how escrow and premiums work can prevent any surprises on your monthly statement.

Consider Additional Coverage

Standard homeowners policies cover a lot, but not everything. It’s important to consider additional coverage options, such as liability coverage, umbrella insurance, and flood insurance for comprehensive protection. Remember, flood insurance is not typically included in standard policies. Assess your risk factors—such as living in a flood-prone area—and add necessary coverage to avoid potential financial pitfalls from unforeseen events.

Review Your Life Insurance Coverage

Purchasing a new home is an excellent time to reassess your life insurance needs. If you’ve recently upsized, you may need increased coverage to fully protect your mortgage and ensure financial security for your loved ones. Conversely, if you’ve downsized, you might have the opportunity to reduce your coverage and adjust your policy to better fit your current financial situation. Regularly reviewing your life insurance ensures it aligns with your changing financial circumstances and commitments.

Homeownership is not just about making mortgage payments—it’s about protecting your investment and financial future. By understanding key aspects of home insurance and considering additional coverage, you equip yourself with the knowledge needed to safeguard your home. Consider reaching out to your insurance agent for a policy review to ensure comprehensive coverage tailored to your needs or consult a financial expert for personalized advice.