Florida Divorce: What You Need to Know About Your Insurance Policies

concept%20of%20divorce.jpgThe Insurance Information Institute has provided guidance on what to do with your insurance policies if you are headed for a separation or divorce:

Auto insurance – if there is a change in ownership of a vehicle, it will also be necessary to change who holds the insurance policy. You can protect yourself against liability by removing a former spouse from your policy in case he or she gets into an accident. If you have a multi-car discount, this will probably result in an increase in your auto insurance rate.

Homeowners insurance – the homeowner’s policy should be in the name of whoever stays in the home. You should also review the policy to ensure it covers the cost of rebuilding your home in case it is destroyed. If you are now living on a smaller income, you may want to raise your deductible amount so you have smaller payments. If you are moving out of the house and renting an apartment, you will need to get renters insurance to cover yourself for loss or damage.

Life insurance – if you already have a life insurance policy that names your spouse as primary beneficiary, you need to revisit it in light of your new circumstances. If you have to pay alimony, a life insurance policy is usually part of a divorce settlement, so that payments can continue even if you are no longer around to make them.

Disability insurance – if a person is supplying alimony or child support, consideration should be given to having a disability insurance policy to cover them in the event they can no longer work.