June is National Homeownership Month, a time to celebrate the dream and reality of owning a home. For new homeowners, this month is extra special as it marks a significant milestone in their lives. However, with great excitement comes the responsibility of safeguarding your investment, especially when it comes to insurance. Here are three critical insurance tips to help you as you step into this new chapter of homeownership.

1. Review Your Life Insurance Coverage

Buying a home often prompts a reconsideration of your life insurance needs. If your new home is bigger or more expensive, it might be time to increase your coverage to make sure your mortgage is protected should anything happen to you. Conversely, if you've downsized, you may be able to adjust and potentially lower your coverage to suit your current situation. Assessing your life insurance ensures that your financial responsibilities align with your new homeowner status, providing peace of mind for your loved ones.

2. Understand Escrow and Insurance Premiums

Many homeowners pay their insurance premiums through an escrow account managed by their lender. This means you might not directly handle the payment of your insurance premiums. Even if you receive a bill from your insurance provider, your lender is generally responsible for the payment. When in doubt, it’s beneficial to confirm payment details with your lender to avoid unexpected surprises. This understanding helps maintain seamless coverage while you focus on enjoying your new home.

3. Consider Additional Coverage

Standard homeowners policies don’t cover everything. It’s important to evaluate whether additional coverage options, such as liability, umbrella insurance, or flood insurance, might be necessary. Flood insurance is particularly important as it’s excluded from most standard policies, yet essential if your home is in an area prone to flooding. An assessment of these risks ensures your home is comprehensively protected from unforeseen events.

Understanding and managing your insurance needs is crucial to protecting both your home and your financial future. As a new homeowner, these insights can help safeguard your investment. For personalized advice, consider scheduling a policy review or consulting a financial expert. Here's to a joyful and secure homeownership journey!