June marks National Homeownership Month, a time to celebrate the journey of owning a home. It's a significant milestone that symbolizes stability and achievement. Yet, with this exciting chapter comes a host of responsibilities, especially concerning financial and insurance matters. To help new homeowners safeguard their most prized investment, here are three essential insurance tips to consider.

Consider Additional Coverage

Your standard homeowners insurance policy provides a basic level of protection, but it may not cover everything. It's crucial to evaluate your specific needs, especially regarding liability, umbrella insurance, and flood insurance. Remember, most standard policies don't include flood insurance, so assess your risk and add this coverage if necessary. This proactive approach ensures comprehensive protection against unforeseen hazards.

Understand Escrow and Insurance Premiums

Many new homeowners find their insurance premiums are paid through an escrow account, managed by their lender. This setup simplifies things since the lender typically handles payment directly, even if you receive a bill from your insurer. To avoid confusion, it's a good idea to periodically check with your lender to confirm payment status or clarify any billing questions. This practice ensures that your insurance remains active, protecting you against unexpected events.

Review Your Life Insurance Coverage

Purchasing a new home often prompts an evaluation of your life insurance needs. Whether you've upsized or downsized, it's essential to reassess your policy. A larger home might necessitate increased coverage to ensure your mortgage is fully protected. Conversely, if you've downsized, you might have the option to reduce coverage, thereby aligning your policy with your current financial situation. Regular reviews with a financial advisor can help tailor your coverage to your evolving needs.

Being informed about your insurance options is crucial to protecting your home and financial future. As you settle into homeownership, consider reaching out to an insurance agent or financial expert for a policy review, ensuring your coverage adequately meets your needs.