Effects Of Life Changes On Your Insurance: Separation And Divorce

When dealing with a divorce, home and auto insurance may be the last thing on your mind. However, divorce does have a major impact on your insurance policies, and it can cause serious problems if the effects are ignored. Both Florida automobile insurance and homeowners insurance policies change when a couple gets a divorce, and both partners must be aware of the possible outcomes. An experienced, Florida insurance agency is your crucial partner during this time, as they can advise you in the best ways to protect your assets.

Florida automobile insurance policies may change due to either separation or divorce. Even if the spouses are simply living separately, their policies can be affected, because companies base coverage on where a vehicle is garaged. If your place of residence has changed, an automobile insurance company can challenge a payout in the event of an accident, or even cancel your policy. As soon as separation occurs, call your insurance agent to inform them of the new location of the vehicle.

If the automobiles are joint property, your joint policy will probably be maintained until the final divorce papers are signed. There is one more pitfall to consider, however: if your spouse is the first named insured, they can remove you from the insurance policy without notifying you. When the first named insured calls the insurance agent to take you off, the agent has to comply with their instructions. In addition, if your insurance policy is listed under your spouse’s name, with you listed only as a driver, you will lose your automobile insurance coverage when you move out. If you are concerned that you may have been removed from your joint auto insurance policy, call your insurance agent to find out, since you may need to obtain separate coverage.

Once the divorce is finalized, meet with your insurance agent to change your automobile insurance policy to reflect your new circumstances. Many things can change with your new policy, including losing the married driver discount and multi-car discount. When calculating your rates, only your credit score, not your ex-spouse’s, will affect your insurance premiums. Additionally, if you have gained or lost assets, such as investments, lump sum payments, and other insurance policies, your coverage needs may have changed. You may require more or less coverage on your automobile insurance policy.

South Florida homeowners insurance will also require changes following a divorce. The first step when the divorce is finalized is to change the homeowners insurance policy to your name. You will also want to review your insurance to ensure you have enough liability coverage for your new financial situation. If you change the locks on your house or install a new security system, make sure to alert your homeowners insurance company, to receive a discount on your premiums for the upgrade in security measures.

To make the best choices for your new South Florida homeowners insurance policy, ask your insurance agent to give you a copy of the C.L.U.E. report for your house. This is like a credit report for your homeowners insurance and will let you know how easy or difficult it may be to obtain a new policy. When it comes to insurance and divorce, the best piece of advice is this: maintain contact with your insurance agent to make sure they are looking out for your best interests, and to ensure your coverage is maintained throughout the entire process.