Celebrate National Homeownership Month
June marks National Homeownership Month, a time to celebrate one of life’s major milestones—buying a home. New homeowners often experience a mix of excitement and the awareness of newfound responsibilities. While homeownership is a significant achievement, it also brings financial and insurance responsibilities that can be daunting. To help you safeguard this precious investment, we’re discussing three vital insurance considerations that every new homeowner should know.
Review Your Life Insurance Coverage
As you embark on homeownership, it's crucial to reassess your life insurance needs. If you’ve upsized, you might require more coverage to ensure your mortgage and family are adequately protected. Conversely, downsizing might allow you to reduce your coverage, helping you align your policy with your current financial realities. Updating your life insurance as part of your financial planning can secure your home for the long term.
Understand Escrow and Insurance Premiums
Many homeowners pay their insurance premiums through an escrow account managed by their lender. This arrangement simplifies your financial obligations, ensuring that your lender handles insurance payments alongside your mortgage. Even if you receive a bill from your insurance provider, rest assured, your lender will typically manage the payment. However, it's always wise to double-check with your lender if you have any doubts regarding the payment status.
Consider Additional Coverage
Standard homeowners' policies might not cover everything, leaving gaps in your protection. It’s advisable to evaluate your need for additional coverage such as liability, umbrella insurance, and especially flood insurance, which isn’t included in most standard policies. Assess your geographical risk for flooding and take steps to add this coverage if necessary, ensuring comprehensive protection for your home.
Understanding home insurance is key to protecting both your home and financial future. Take action today by reviewing your policy details or consulting a financial expert for personalized guidance tailored to your unique circumstances.