Splitting assets in a divorce can be difficult but dealing with insurance policies is often next to impossible. Even though about half of all marriages end in divorce these days, insurance companies have been slow to account for this fact in their policies.
In a divorce, it’s more than likely that you’re going to have to make adjustments to your home insurance policy to protect yourself. If you plan ahead and play your cards right during divorce proceedings, you can ensure that your property remains insured and give yourself peace of mind.
While many couples don’t want to think about the worst on their wedding day, it’s important to plan for any eventuality. In the event that you and your spouse end up separating you’ll be happy that you took the time to craft an insurance policy that holds up after divorce proceedings are through.
It’s a good idea to write all homeowners insurance policies in the name of both spouses. This way, either spouse can make changes to the policy during separation, but only so long as both parties agree. This helps to prevent foul play during divorce proceedings and keeps things amicable.
Talk With Your Insurance Agent
When you’re going through a divorce, it’s essential to keep your insurance agent up-to-date with any changes in your living situation. You can stay in contact with them to ensure that your home and its possessions remain protected, whether you keep living in your former home or move to a new residence.
If one spouse is moving out permanently, their name should be taken off of the homeowner’s insurance policy. The spouse that stays may also be able to talk to an agent and modify their policy to increase coverage or reduce monthly payments.
Cover Your Bases
After a divorce, many couples choose to take up separate living arrangements. If you plan on moving out of your marital home after a divorce, either for personal or financial reasons, you’ll probably find yourself without insurance coverage for your new home.
Most homeowners’ policies don’t cover property that’s moved from one house to a separate residence. You should make sure to purchase a renter’s insurance policy to protect your belongings. It’s also important to look into buying separate plans for auto policies, life insurance, and more.
Dealing with homeowners insurance in the wake of a separation can be a pain, but it will save you stress in the long run. It’s important to be prepared and to know what to do after divorce proceedings are over to protect your property. Whether you’re staying at home or moving, it’s always a good idea to keep your insurance policies up-to-date.
Author: The Pittsburg Better Times Team