June marks National Homeownership Month, a time to celebrate the journey and achievements of owning a home. This milestone brings both excitement and challenges as new homeowners navigate financial and insurance responsibilities. As you settle into your new abode, understanding insurance nuances can help safeguard your investment. This post shares three essential tips for ensuring your home is well-protected.

 

Consider Additional Coverage

 

While standard homeowners insurance covers a lot, it may not cover everything. Liability, umbrella, and flood insurance are often overlooked but crucial for comprehensive coverage. Given that standard policies typically exclude flood insurance, assessing your property's risk level for flooding is vital. Consider adding this protection to avoid substantial costs in case of unforeseen water damage.

 

Understand Escrow and Insurance Premiums

 

Many homeowners pay insurance premiums through an escrow account, managed by their lender. Despite receiving bills from your insurer, it’s usually your lender who handles payments using the escrow account. For peace of mind, double-checking payment details with your lender can prevent any billing issues and ensure your policy remains active.

 

Review Your Life Insurance Coverage

 

Purchasing a home often triggers the need to reassess your life insurance. If you’ve upsized, it might be necessary to increase your coverage to protect the mortgage in unforeseen circumstances. Conversely, if you’ve downsized, consider adjusting your policy to better align with your new financial situation. Regular reviews can ensure your family remains secure.

Understanding your home insurance is essential for safeguarding both your home and financial future. Consider reaching out to a financial expert or insurance professional to review your current policies. Thoughtful planning today can provide peace of mind for tomorrow.