Mark Bigham | Jun 04 2025 15:00
Celebrating Homeownership Month
June is National Homeownership Month, a time when many individuals and families reflect on the exciting journey of owning a home. Becoming a homeowner is a significant milestone, filled with dreams of creating a personal sanctuary and building long-term wealth. However, with this new adventure comes a host of responsibilities, particularly in the realm of financial and insurance planning. This blog post will explore three vital insurance tips to help you safeguard your new investment.
Consider Additional Coverage
One common misconception is that a standard homeowners policy covers all potential risks. In reality, there are many situations where additional insurance could be essential. For instance, if you live in an area prone to flooding, remember that flood insurance is often not included in basic policies. It's crucial to assess your risk level and add flood insurance if necessary. Additionally, reviewing your liability coverage and considering umbrella insurance can provide extra peace of mind, ensuring you're fully protected against unforeseen events.
Understand Escrow and Insurance Premiums
Many new homeowners are unfamiliar with the concept of paying insurance premiums through an escrow account. Typically managed by your lender, escrow accounts can simplify managing insurance payments by including them in your monthly mortgage payment. If you receive a bill from your insurance provider, don't fret—your lender generally handles the payment. However, it's wise to confirm any details with your lender if you have questions about escrow payments.
Review Your Life Insurance Coverage
Buying a home often means reevaluating your life insurance needs. For those who've upsized, ensuring your mortgage is covered in the event of an unforeseen circumstance is critical. You may need to increase your coverage to align with your new financial responsibilities. Conversely, if you've downsized or paid off a significant portion of your mortgage, it could be an opportunity to adjust your policy, reducing your premium and aligning it with your current financial situation.
Homeownership represents not just a physical asset but a significant investment in your financial future. Protecting this investment with comprehensive insurance coverage is crucial. To better understand your policy needs or explore additional coverage options, consider reaching out to a financial expert for personalized guidance.