Welcome to Homeownership

June marks the celebration of National Homeownership Month, a time that recognizes the pride and joy of owning a home. For many, stepping into homeownership is a key life milestone filled with excitement and, naturally, a few challenges. Beyond decorating and settling in, this new chapter brings along its own set of responsibilities, particularly around financial matters and home insurance. In this blog, we’ll walk you through three essential insurance tips designed to help you protect your home and, by extension, your investment.

Understand Escrow and Insurance Premiums

Most new homeowners find themselves dealing with escrow accounts when paying their home insurance premiums. Managed by your mortgage lender, these accounts ensure that your insurance is paid on time each year. Even if you happen to receive a bill from your insurance provider directly, rest assured that your lender is taking care of the payment on your behalf. If you have any uncertainties or questions regarding your payment status, a quick check-in with your lender will provide clarity and peace of mind.

Consider Additional Coverage

While a standard homeowners policy covers a wide range of potential issues, it doesn’t encompass everything. It is crucial for new homeowners to evaluate additional coverage options such as liability coverage, umbrella insurance, and specifically, flood insurance. Given that standard policies often exclude flood damage, assess your area’s risk level and apply for coverage if your situation warrants it. This step will ensure that you’re not just partially covered but fully protected from unforeseen occurrences.

Review Your Life Insurance Coverage

Buying a home is a pivotal moment to reassess your life insurance needs. If your new home represents an upsized investment, you may need to adjust your life insurance to cover the entirety of your mortgage should anything unforeseen happen to you. Conversely, if you’ve downsized, it might be feasible to reduce your existing coverage, thus freeing up funds or adjusting premiums to better suit your current financial landscape. Understanding and maintaining the right home insurance coverage is not just about meeting legal requirements; it is about safeguarding your dream home and the life you plan to build within it. To ensure you are adequately protected, consider reaching out for a personalized policy review or consult with a financial expert. This proactive approach can offer you security and stability for the years to come.