June is celebrated as National Homeownership Month, a time to acknowledge the joy and challenges of owning a home. Whether you're a freshly minted homeowner or considering the prospect, understanding your insurance needs is crucial. Owning a home isn't just about having your own place—it's a significant financial commitment that requires astute management of insurance policies to protect your investment. Read on to discover three essential insurance tips that can help safeguard your new home.

Consider Additional Coverage

Many new homeowners may not realize that standard homeowners policies often exclude certain types of damage. For instance, flood insurance is routinely not included in regular policies. It's important to assess your home's risk for natural disasters like floods and consider adding flood insurance as needed. Additionally, reviewing options for liability and umbrella insurance can provide an extra layer of protection, ensuring you're covered in unforeseen circumstances.

Understand Escrow and Insurance Premiums

Many homeowners pay their insurance premiums through an escrow account managed by their lender, which means the lender takes care of paying the premium from the escrow balance. While you might receive a bill from your insurance provider, this doesn't necessarily mean you have to pay it directly. Always double-check with your lender if there's any confusion about who is responsible for payments to keep everything running smoothly.

Review Your Life Insurance Coverage

Purchasing a home often means reassessing life insurance needs. Whether you've upsized or downsized, it's wise to ensure your life insurance policy adequately covers your mortgage. If you've upgraded to a larger home, consider increasing your coverage to fully protect against mortgage liabilities. Conversely, downsizing might allow you to reduce your life insurance and adjust accordingly, aligning with your current financial reality.

Having a strong grasp on your home insurance options not only ensures your property's safety but also secures your financial future. Take the time to review and understand your insurance needs and consult with experts to tailor them to your specific situation. For personalized advice, consider reaching out to a financial expert and schedule a policy review to start your homeownership journey confidently.