June marks National Homeownership Month, a time to celebrate the joy and pride that comes with owning a home. However, as exciting as this milestone can be, it also brings new responsibilities, especially when it comes to insurance and financial management. To help new homeowners protect their investment, here are three crucial insurance tips.

Understand Escrow and Insurance Premiums

For many homeowners, insurance premiums are paid through an escrow account managed by the lender. This arrangement means that your insurance is effectively on autopilot—your lender will receive the bill from your insurance provider and handle the payment from your escrow account. However, if you ever receive a bill directly from your insurance company, it's important to double-check with your lender to ensure everything is being handled correctly. This proactive approach can avert confusion and ensure your coverage remains uninterrupted.

Consider Additional Coverage

While a standard homeowners insurance policy offers many protections, there are crucial areas it might not cover. For example, flood insurance is typically not included in standard policies. Depending on your location and personal circumstances, you may need to assess your risk and consider additional policies, such as flood or umbrella insurance, to ensure complete protection. Reviewing your liability coverage is also wise, ensuring you are fully protected against potential legal or health claims.

Review Your Life Insurance Coverage

Your new home warrants a reassessment of your life insurance needs. If you've upsized, you might need more coverage to secure your mortgage fully. Conversely, if you've downsized, adjusting your policy could provide financial relief. Reassessing your life insurance coverage is vital to align your policy with your new financial responsibilities and opportunities.

Homeownership is a significant achievement, but it comes with important responsibilities. Understanding and managing your insurance effectively is crucial for securing both your new home and financial future. Consider reaching out for a policy review or consulting a financial expert to ensure your coverage is comprehensive and suits your unique needs.