Homeowners Insurance Issues During Divorce
Tim: Let’s talk about Homeowners Insurance.
Tim: What do you have for us is there. And I was looking for some notes that I found online really just changing policies or Renter Insurance if you’re going to sell the family home, you’re going to be renting and you’re talking about maybe something combining Renters Insurance with your other insurance and you’ll get some discounts.
Jon: Right. So I’ll start by saying this, when we say Homeowners Insurance we’re only talking about people who own homes and people who might own condos or who might actually rent an apartment or home or any house.
So it kind of encompasses all that. The big difference is from an insurance standpoint you’ve been paying most likely for one home or one residence where you live.
Well and all like we said, as you split up you’re going to need to pay for two. So again there’s a cost issue here which brings up the idea of ‘it’s time to take a look.’
You might have been in a home before. And now you’re going to rent a location.
What that impacts insurance as well, is companies almost all companies gives discounts when you have your home, car with or your home and rental with them.
So again it’s another opportunity that if you’re going to go ahead and split things apart to take a look and take advantage really of any discounts that may be available.
Most companies give a little bit bigger discounts if it’s a home or a renter but that doesn’t mean that there isn’t opportunity for you that if you’re going to split apart and you’re now renting an apartment to look for what company gives you the best discounts and overall it’s a package.
Jon: So that’s one thing that we certainly would want to encourage people to do.
Tim: To look at not only add over to get your Renters Insurance and maybe combining packages.
One thing I tell people is, when they get Divorce like were talking about separate households, separate incomes, you now have the same income the two parties were making, now handling two households it’s never going to be the same…
Tim: …scenario financially. It’s not going to be the same scenario to live in some cases.
Jon: And it’s unfortunate because that’s the time when the insurance piece which nobody likes to talk about is actually probably going up as well because you’re now ensuring more things and you have to ensure before.
So it just drives to the point of looking at it and making some good decisions and working with somebody who can walk you through that process.
Tim: And bringing up the things they don’t need and they don’t know to bring up. That’s one of the biggest things in my line of work is they don’t know the questions they should be asking.
Tim: Right? So they probably won’t even be thinking that maybe they thought ‘Hey, Tim told me that I should talk to John about my Auto Insurance.’
And then you’re going to bring up, ‘Okay, so where are you moving? Are you going be renting?’
Tim: Let’s talk about Renters Insurance.
Jon: Well and I think the other piece that goes in there too is as you separate your belongings, most policies have special coverages for special blinds like of the wedding ring for example or your mothers jewelries, all those things.
Well, you might be taking those out of the Homeowners policy and you’re moving you’re taking them with you when you do the Renter Policy. Well those things need special coverage too.
So there are maybe things you hadn’t thought about before and again driving home at the point of reviewing it.
And if you have anything that’s a value maybe you were able to take that out of the relationship, then you want to make sure you have the coverage for it as worth it as to take it out the relationship…