June marks National Homeownership Month, a time of pride and achievement as countless individuals across the country reach the significant milestone of purchasing a home. For new homeowners, this period is filled with excitement, yet it also heralds a set of responsibilities, especially regarding the financial and insurance aspects needed to protect this major investment. Let's explore three key insurance considerations that every new homeowner should keep in mind.

Consider Additional Coverage

Your standard homeowners insurance policy is a good starting point, but it's crucial to recognize that it might not cover everything. Take time to review what is actually included in your policy and consider if supplementary coverage is needed. For example, standard policies often do not cover flood damage. If you live in a high-risk area, assessing your need for flood insurance is vital. Additionally, expanding your liability coverage and considering umbrella insurance can provide extra protection and peace of mind.

Understand Escrow and Insurance Premiums

Navigating insurance payments is often a new endeavor for homeowners. Many pay their insurance premiums through an escrow account managed by their lender, simplifying the process. If you receive a bill from your insurance provider, don't fret—your lender typically handles the payment. However, it is wise to confirm this arrangement with your lender and double-check if any payment questions arise.

Review Your Life Insurance Coverage

Buying a home is a perfect time to reassess your life insurance needs. If you've purchased a larger home or upsized, you may need additional coverage to ensure that your mortgage is fully protected in the event something happens to you. If you've downsized, consider adjusting your coverage to better fit your new financial situation. Regularly reviewing your life insurance policy ensures it aligns with your current lifestyle and financial goals.

Understanding and managing your home insurance is not just about abiding by lender requirements—it's about safeguarding your home and securing your financial future. For personalized guidance, consider reaching out to a financial expert or setting up a policy review with your insurance provider.