Embracing June: National Homeownership Month

June signifies National Homeownership Month, a time to celebrate the joy and accomplishment of owning a home. For many, homeownership represents a significant milestone—a blend of excitement and responsibility. As new homeowners, it's essential not only to focus on the immediate joys but also to embrace the long-term commitment toward maintaining and protecting your investment. An important part of this journey is understanding the insurance landscape to safeguard your financial future. Here are three crucial insurance tips to help you on this path.

Understand Escrow and Insurance Premiums

Many homeowners find themselves navigating the world of escrow accounts, particularly when it comes to paying insurance premiums. Often, your lender will manage this account and pay your insurance premiums and property taxes on your behalf. This can be comforting, especially when you receive an insurance bill and wonder if you need to handle it. Typically, your lender takes care of these payments, but it's always a good idea to check in if you have any payment concerns or uncertainties.

Consider Additional Coverage

Standard homeowners insurance policies might not provide all the coverage you need. It's crucial to evaluate your specific needs, which may include looking into liability coverage, umbrella insurance, or flood insurance. Notably, flood insurance is generally not included in standard policies, yet the risk of flood can be significant depending on your location. Assess your risks and ensure you have the right coverage to protect your property from unexpected events.

Review Your Life Insurance Coverage

Purchasing a home is a perfect time to reassess your life insurance needs. If you've bought a larger or more expensive home, you might need additional coverage to ensure your loved ones could continue to manage the mortgage if something unexpected were to happen. Conversely, if you've downsized, it might be time to adjust your policy to better fit your current financial situation.

Understanding and managing your insurance needs as a homeowner is key to securing your future and protecting your investment. Don't hesitate to reach out for a policy review or consult a financial expert for personalized guidance tailored to your situation.