Celebrate National Homeownership Month with These 3 Smart Insurance Tips
June is National Homeownership Month—a time to celebrate the pride, freedom, and security that come with owning a home. Whether you’re settling into your very first house or have been a homeowner for years, this month is a great reminder to not only enjoy your space, but also protect it. One of the best ways to do that? Making sure your insurance coverage is up to date and working for you.
Here are three essential insurance tips every homeowner should keep in mind:
1. Know What Your Policy Covers—and What It Doesn’t
A standard homeowners insurance policy usually covers the basics: your home’s structure, personal belongings, and some liability protection. But there are important gaps that can leave you vulnerable.
For example, many people are surprised to learn that flood damage is not covered under most standard policies. If you live in an area with any flood risk, even low, you may want to consider purchasing separate flood insurance through the National Flood Insurance Program or a private provider.
You might also consider umbrella insurance for extra liability protection, especially if you have a pool, trampoline, or host gatherings. It’s all about understanding your specific risks and filling in the gaps before a problem arises.
2. Revisit Your Life Insurance
Buying a home often comes with big financial changes—like a mortgage. That’s why it’s smart to take a fresh look at your life insurance policy.
If you’ve taken on more debt or are now the primary provider for your household, you’ll want to make sure your coverage is high enough to cover the mortgage and provide for your family if something happens to you. On the other hand, if you’ve downsized or paid off significant debt, you might be able to adjust your policy and reduce your premiums.
Either way, your life insurance should reflect your current financial reality. Keeping it aligned with your homeownership goals ensures long-term peace of mind for you and your loved ones.
3. Understand How Escrow Payments Work
Many homeowners pay their insurance premiums through an escrow account—a setup where your mortgage lender collects the money as part of your monthly payment and pays your insurance provider directly.
It’s a convenient system, but it can sometimes be confusing. You may still receive a bill from your insurance company, which doesn’t necessarily mean payment is due. If you’re ever unsure, it’s worth checking with your lender to confirm everything is being handled. A quick call can prevent lapses in coverage or double payments.
Homeownership is a milestone worth celebrating—and protecting.