Recent studies found that more couples are going to divorce or separate in San Diego, CA, and across America. While it is sometimes inevitable, a divorce raises many questions, especially with regards to home insurance. In most cases, divorce only results in the creation of two households, which is a good thing if both parties agree on what to do about the previous homeowner’s insurance. At the Insurance Pros of California, we are here to help you understand the effects of divorce on your home insurance policy.
The insured property
When it comes to divorce or mutual separation, the house possessions can be split between both parties. Therefore, you may need to review your home insurance policy to make sure that it covers the contents and structure of the home. Keep in mind that the primary property owner can only insure a property, but if ownership changes due to divorce, then the home insurance policy will need to be adjusted to reflect the new owner.
The name of the policy
Proper home insurance should have both names of the husband and wife. Unfortunately, this is not always the case, which leads to many problems. If the policy only reads one name, then this person is solely responsible for making any policy amendments. If the separation forced the policy owner to vacate the home, there is nothing the insurance company nor the partner can do to the policy. If the person wants to buy insurance for another residence, they are permitted to do so. In simple terms, only the parties listed on the policy are eligible to make any policy changes.
A divorce affects every aspect of the couple’s life from family, work, address, and many other significant lifestyle changes. However, fixing what is most crucial for both parties–home insurance policy– is the best way to have a successful and peaceful separation. If you are still concerned about home insurance after divorce, you can always contact us at the Insurance Pros of California in San Diego, CA, and our insurance experts can answer all your questions.