“When discussing the financial aspects of a divorce or a break-up, insurance considerations should be a key component in ongoing and final decisions,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Dividing up property, changing homes, and altering life insurance policies must be discussed to make sure that both parties, as well as children or other dependents, are financially protected after the separation is completed.”
The I.I.I. suggests couples review the following coverages if they plan to separate or divorce:
2. Homeowners and Renters Insurance
Divorce and separation will generally result in a change of residence as well in moving personal items from one location to another. You will need to determine if one party will be staying in the current home or if both parties are moving into new residences. Regardless of where you will be living after the separation, make sure to get the proper type and amount of homeowners or renters insurance for your new house or apartment.
Personal possessions are also going to be divided between the parties. It is important that each person let their insurance company know the value of their possessions in their new home. If one party retains valuable jewelry, art or other luxury items in the settlement, they should inform the insurer whether to cancel or add any special floaters or endorsements to the policy for these items. Having an up-to-date home inventory, can help with this process; and each person should now take steps to create their own inventory once the belongings have been divided. An inventory can help you purchase the correct amount of insurance and speed up the claims process when there is a loss. To make creating your inventory as easy as possible, you can use the I.I.I.’s free Web-based home inventory software and app, Know Your Stuff® - Home Inventory.