Divorce can be stressful. The dream of spending the rest of your life with a person you once loved has ended. Now you must negotiate what comes next with your lawyer, your ex, and their lawyer. Here are the top 3 insurance exposures to look for when going through a divorce.
Who’s moving out affects your auto coverage
If you are moving out, you’ll want to adjust your coverage to avoid potential exposures. If you are not a “Named Insured” on your Auto policy, after 90 days (or your renewal, whichever is first) you are not considered a covered driver on your policy. Most people don’t realize this and are left to pay for claims out-of-pocket.
The moment you move out and have a new place of primary residence, the homeowner’s insurance you had with your spouse will not cover you or any of your belongings. Make sure to get Homeowner’s or Renter’s insurance, this will protect you and your belongings in the case something happens.
What’s mine and what’s yours?
As you begin to split assets, you may want to get your own insurance for your Home, Auto, Boat, etc. If the divorce is not final yet, you and your spouse need to list each other as “Additional Insureds” on those policies. If there is a claim, your policy will cover both of you while you are still married and have an insurance interest on those assets. Should any coverage change or a policy is cancelled, both of you will be notified so you can avoid an unexpected loss.
When will the divorce be final?
Whether your divorce proceeds amicably or becomes contested, make sure you are adequately covered. You could keep the same policy for both of you until the divorce is final or have separate policies with your spouse named as an “Additional Insured”. Either way, inform your agent to remove your spouse from your policy and cease providing them coverage when no longer required.