June marks National Homeownership Month, a wonderful time to celebrate the joys and responsibilities of owning a home. Whether you're stepping into your first house or have experienced a change in your residence, homeownership is a significant milestone. Along with the excitement, it brings financial and insurance responsibilities that are crucial for protecting your new investment. Here are three essential insurance tips to guide new homeowners in safeguarding their asset:

Review Your Life Insurance Coverage

Purchasing a home often warrants a review of your life insurance policy. If you've upgraded to a more expensive property, it might be necessary to increase your coverage to ensure your mortgage is adequately protected. Conversely, if you've downsized, there's an opportunity to decrease your coverage and adjust your policy to better align with your current financial situation. Reassessing life insurance at this juncture can provide peace of mind, knowing your family and home are secure.

Understand Escrow and Insurance Premiums

Many homeowners may not realize that their insurance premiums can be paid through an escrow account managed by their lender. This arrangement simplifies financial management by consolidating tax and insurance payments. It's important to remember that even if you receive a bill from your insurance company, your lender typically manages these payments. If any questions arise regarding your payments, don't hesitate to contact your lender for clarification.

Consider Additional Coverage

Standard homeowners insurance policies aren't all-inclusive and might not cover every potential risk. It is wise to evaluate your need for supplementary insurance policies such as umbrella insurance for expanded liability coverage and flood insurance, especially given that flooding is not covered under most standard policies. Assessing your risk levels and adding essential coverages can uniquely tailor your policy to provide comprehensive protection for your home.

Understanding your home insurance is essential not just for protecting your home, but also for securing your financial future. As you enjoy the benefits of your new home, consider reaching out for a policy review or consulting with a financial expert to ensure you have the right coverage in place.