Embracing Homeownership Month
June is here, marking National Homeownership Month, a time to celebrate the exciting journey of owning a home. As new homeowners, you stand at the start of this thrilling adventure filled with unique challenges and responsibilities. While owning a home is a remarkable milestone, it also brings with it significant financial and insurance obligations that require attention to safeguard your investment.
Understand Escrow and Insurance Premiums
If you're like many homeowners, your insurance premiums are likely included in your mortgage payments, handled through an escrow account managed by your lender. This setup ensures consistency in payments to your insurance provider. However, even if you receive a bill directly from your insurance company, there’s no need to panic—your lender generally takes care of it. Nonetheless, it's beneficial to periodically verify your payment schedules with your lender to clear any doubts and ensure smooth transactions.
Review Your Life Insurance Coverage
The purchase of a new home is a perfect time to reevaluate your life insurance needs. Larger spaces might require you to increase your coverage to ensure complete mortgage protection, while a downsized property can offer the opportunity to decrease your coverage and better align your premiums with your current financial situation. Regular assessments of your life insurance can safeguard your finances and provide peace of mind.
Consider Additional Coverage
Standard homeowner policies provide critical coverage but might not encompass every potential issue. Take time to review additional coverage options such as liability insurance, umbrella policies, and, notably, flood insurance. Most standard policies exclude floods, meaning you must assess your home’s risk and consider this crucial addition. Taking proactive steps to secure comprehensive coverage helps protect your investment from unforeseen incidents. Understanding your insurance needs is not just about protecting your home—it's an integral part of securing your financial future. For personalized advice, consider scheduling a policy review or consulting with a financial advisor. A tailored approach will ensure you are adequately covered and confident in your homeownership journey.
