Tips for New Homeowners
What? There’s more? Don’t worry. We’ve got just a few more notes to set you up for success as a new homeowner. Remember, your home is likely one of the largest assets you’ll ever own. That means it has the power to make or break your financial future. So, what can you do to make sure your home helps you build wealth instead of draining it over time? Follow these tips.
Beware of Rip-Off Insurance Offers
During the first few months of being a new homeowner, you’ll wonder if your mail carrier thinks your mailbox is a trash can thanks to all the junk mail you’ll receive. As you sort through it, watch out for rip-off insurance offers like mortgage life insurance policies or home warranties. When you get offers like these, toss them into your actual trash can. You don’t need that overpriced garbage. If you’re not sure which types of insurance are a gimmick and which kinds you actually need, take our 5-Minute Coverage Checkup.
Update Your Coverage When You Update Your Home
We get it. Insurance is probably the last thing you want to think about, and it might not even cross your mind when you plan future updates and additions. But projects like these change the value of your home, and that impacts the coverage you need.
Whether it’s a project as complicated as adding a new room or as simple as building a shed in your backyard, the value of your home will increase and your insurance coverage might fall short of truly protecting you and your property. So, update your policy before trouble comes knocking on your door. The key is to make sure the replacement coverage matches the value of the items in and around your home.
On the flip side, upgrades like a new roof, HVAC or a security system could actually save you money on coverage. If you need help figuring this out, connect with an independent insurance agent we trust.
Don’t Be Surprised During Tax Season
Okay, there’s one more thing, so stay with us. Beyond changes to your insurance coverage, purchasing property also impacts your income taxes come April. For example, you can deduct the interest you paid on your mortgage up to a certain limit. If you want to make sure you file your taxes correctly, connect with a RamseyTrusted tax advisor. They’ll help you find out if you need to make any withholding adjustments now so you don’t owe (or get an overly large refund) later.