separation - Spencer Insurance Agency, Inc

How does divorce and separation affect my insurance?

 

Here is an important article from our website on how separation and divorce affects your insurance coverage.

You are thinking or have decided that separation or divorce is your only solution.  What do you do now?  We at Spencer Insurance Agency are not attorneys and do not provide legal advice.  However, we understand that separation and divorce have a huge impact on your insurance coverage.

Our goal for this article is to educate you on how divorce or separation can impact your insurance coverage.  We also intend to provide some useful links on topics that are related to your insurance.

What is the first thing I should do? Call us at 215-885-2200 or contact us from our website!!!  Discuss with us your situation so we can make sure you are properly protected while going through this process.

What you need to understand:

  • Privacy laws may prohibit or limit our staff from discussing with you information concerning your spouse.
  • We do not take sides. Since both you and your spouse are our clients, we want to make sure both of you have the proper coverage during this process.
  • We will need written authorization from you to speak to one of your advisors (lawyer, financial planner, insurance agent) concerning any of your insurance coverage.

How will separation or divorce affect my insurance coverage?  Depending on the type of insurance coverage, actions taken by you could have a huge impact on your insurance coverage.  We suggest you call us and discuss your situation. Here are some examples on the impact that divorce and separation have on your insurance protection:

  • Auto Insurance
    • Who is the named insured on your policy?  In your auto policy the words “You” and “Your” are used often to refer to the Named Insured on the Declaration page and the spouse if a resident of the same household.
      • If you are not the named insured and move out of the household, you may not have coverage under your auto policy
      • If you are not the named insured and your spouse moves out of the house, you may not  have coverage under your auto insurance
      • If your spouse is the only named insured, your spouse may be able to delete your vehicle from the auto insurance policy without your knowledge. (Note: If we don’t know you are separating, how can we protect you?)
      • Whose policy will carry your teen drivers?

What is the solution?  That depends on many factors, however it may be best for our agency to split your cars onto separate auto insurance policies

  • Homeowner’s Insurance
    • Who is the named insured on your policy?  The named insured could be one or both spouses and still cause you problems.
      • If both spouses are named insureds and one of you moves into an apartment, you have limited personal property coverage.  Your policy says that personal property at other residences is limited to 10% of your Coverage C limit on your Homeowner’s policy or $1,000, whichever is greater. In regards to liability coverage, the new residence may not be covered if coverage is not extended to that location from the original homeowner’s insurance policy.
      • If you are not a named insured on the Homeowner’s policy and you move into another residence, then you may have no personal property or liability coverage
      • If your spouse is the only named insured, your spouse may delete coverage or endorsements from the homeowner’s policy such as jewelry, musical instrument or other valuable items coverage.
      • Both Named Insureds move out leaving the property vacant.  If a home is left vacant then some of the provisions of the policy may be voided.  You may need to get a Vacant Dwelling policy for the home.

What is the solution?  You may want to purchase a renter’s policy to give you the proper coverage for your new residence.

  • Life Insurance– It is critical that you review your life insurance policies and wills when considering a separation or divorce. Don’t forget the group life insurance policies you purchased through your job.  Check out our Free Report: What you need to know about Life Insurance. . . How to Make sure the People You Intended to get your Life Insurance Benefits Actually Get the Benefits!  You need to consider the following:
    • Is the life insurance on my spouse for the benefit of our children?  What happens when that spouse dies and you no longer receive child support?  To make matters worse, what if your ex-spouse’s life insurance lapsed because of failure to pay the premium?  Discuss with us options available so this does not happen.
    • Whoever owns the life insurance can change the beneficiary at any time.  You may never know the beneficiary change was made. Consider making sure you are an irrevocable beneficiary.  However, this may not matter if the policy lapses for non-payment.
    • Do you need more or less coverage now?
    • What happens if you or your ex-spouse has children with a new spouse?  Who will benefit from the life insurance?
    • Health Insurance– Our agency does not handle Health Insurance but can recommend someone for your needs.  It is very important that you check to make sure your health insurance benefits for you and your children are not impacted by the divorce.  Know the answers before you finalize the divorce.  Check out this link from the US Department of Labor: http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

Other Important topics you need to consider:

  • Wills– make sure you have updated your wills throughout this process.  Talk to an attorney.
  • Retirement plans and investments. Know your rights.  Talk to your financial planner or get one if you do not have one. Check out this link from the US Department of Labor: http://www.dol.gov/ebsa/publications/qdros.html
  • Social Security Benefits– Make sure you know how your benefits will be impacted by your divorce.  Check out this website from the Social Security Administration: http://www.ssa.gov/retire2/divspouse.htm

Many times the separation and divorce process can be very amicable, especially when children are involved. Even so, our agency usually learns about separation and divorce too late in the process to protect you properly.  Don’t wait until it is too late.  Call us at 215-885-2200.

This information was meant to provide you some guidance when you are considering separation or divorce.  It is not meant to be considered legal or financial advice.  Spencer Insurance Agency suggests you seek the advice of an attorney and financial planner among other professionals.  Your insurance policies will dictate what coverage is provided to you.  Nothing in this article is meant to replace your policy provisions.  Consult your policy and agent for details on coverage provisions.

Separating or recently divorced? Check in with us!

 

If you or someone you know is recently separated or divorced you should check in with us. The sooner the better.

We recently had a client in Glenside that had car insurance on a policy with her husband.  They were recently separated and the wife moved into an apartment. What she did not understand is this would have huge impact on her car insurance and homeowner’s insurance.

Privacy laws sometimes make it difficult for us to talk to her about her husband.  However, we could quote and issue a car insurance policy on just her car.  We also suggested a renter’s insurance policy for her since she moved out of the home.  The husband would continue with the current policy so his car would also have coverage.

You also need to think about your life insurance policy.  Who should be the beneficiary?  If you have children then it is important to make sure there is a change to the beneficiary to reflect the separation or divorce. You should also discuss with the divorce lawyer your life insurance policies as you want to make sure they continue for the benefit of the children.

It is important to make sure the divorce attorney helps you in these areas but you may need to see a lawyer specializing in estate law.  You will need to update your will, power of attorney and living will.  If you need a referral to an estate attorney contact us.

There are many things related to insurance that you need to consider when getting a separation or divorce.  For more details check out our website article “Getting a divorce or separation.”

As always we are available to review your auto, home and life insurance policies.  We are professionals and our goal is to make sure both spouses have the proper protection in the event of a divorce or separation.  We do not take sides, we just assist both of you.

Important Insurance tips if you are getting separated or divorced.

lawsuit

When you are dealing with the very emotional and stressful time of a separation or divorce you may not realize how much these situation affect your insurance.

Call us at 215-885-2200 to discuss your separation or divorce.  Let us help educate you on the ways divorce and separation affect your insurance coverage:

  • If you move into an apartment are your contents and liability covered?
  • Whose auto policy will cover the kids?
  • Can I just drop my auto insurance?
  • Will my spouse still be responsible for my life insurance for the benefit of our children?
  • Should I change beneficiaries on my life insurance?
  • What about your wills, Retirement plans, social security?

You can see there are many important issues you need to consider when separating or divorcing.  You need to discuss these issues with your attorney and your insurance professionals. Check out our tips on “Getting a divorce or Separation.”  As always let others you care about know about this valuable information.

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