Homeownership Month: Essential Insurance Tips for New Owners

Celebrating National Homeownership Month

June marks National Homeownership Month, a time to celebrate the joy and achievement of owning a home. As a new homeowner, you’re embarking on an exciting journey filled with possibilities and, yes, a few challenges too. Homeownership is a major milestone, but it also comes with important financial and insurance responsibilities. To help you safeguard your investment, we’ve put together three key insurance tips every new homeowner should consider.

Understand Escrow and Insurance Premiums

Many new homeowners are pleasantly surprised to learn that their mortgage lender often manages their homeowners insurance payments through an escrow account. This arrangement means you pay your insurance premium as part of your monthly mortgage payment, and the lender takes care of the rest. However, it’s not uncommon to receive a bill from your insurance provider—rest assured, this is standard, and your lender typically handles the payment. If you ever have questions about your escrow account or insurance payments, don’t hesitate to reach out to your lender for clarification.

Consider Additional Coverage

While standard homeowners insurance policies offer a solid foundation of protection, they may not cover everything. As a new homeowner, it's wise to review additional coverage options such as liability insurance, umbrella insurance, and flood insurance. Notably, most standard policies do not include flood insurance, a crucial consideration depending on your location. Assess your potential risk and include additional coverage to ensure comprehensive protection of your home and assets.

Review Your Life Insurance Coverage

Buying a home is a significant life event that can impact your life insurance needs. If you've upsized your living space, you might need to increase your life insurance coverage to cover your larger mortgage. Conversely, if you've downsized, it could be time to adjust your policy to reflect your new financial situation. Re-evaluating your life insurance ensures that in the event of the unexpected, your mortgage and family's financial security remain protected. Understanding homeowners insurance plays a critical role in safeguarding not just your property, but your financial well-being. Whether it’s revisiting your life insurance coverage or exploring additional protections, these steps are vital in securing your investment for the future. For personalized guidance, consider reaching out to an insurance expert for a policy review tailored to your unique needs.