How A Divorce Hits Home Insurance
The phrase happily married has almost become a punch line in our divorce ridden society. An astonishing one in two marriages end in divorce and the fall out of these divorces cover all aspects of marriage including owning a home. So what becomes of the home owners insurance? It may seem like an insensitive question to ask in such an emotionally trying time but it is an important question because it is an essential part of any married couple's financial obligations.
Following a divorce, whoever keeps the house must thoroughly re-assess and update the home owners insurance policy. If you think you can find a better policy then go ahead and test the water by comparing home owners insurance quotes online. However, if you decide to keep your existing policy then you will need to make a few changes.
First you will need to sign the policy in your name only and evaluate it to see if your coverage is up to date meaning you are not underinsured or overpaying for unnecessary coverage. You will want to talk with your home owners insurance agent about these matters. You will also need to decide which kind of coverage you want. Your choices are:
* Replacement cost coverage - This type of coverage offers the cost to replace or repair the insured item at its newly purchased value.
* Actual cash value - This form of reimbursement replaces or repairs the insured item at its depreciated value at the time of loss.
It is also important that you re-assess the deductible in your policy. Remember that a higher deductible means lower premiums. Depending on your financial situation following the divorce, you will want to sign on for the highest deductible amount that you can afford.
Evaluate Your Home Owners Insurance And Move On
The last thing any married couple going through a divorce wants to worry about is home owners insurance. However, it is a fact of life that must be dealt with and if handled correctly, it can be dealt with effectively allowing you to move on with your life. Talk to your home owners insurance agent today about how you should handle your home owners insurance policy following a divorce.
If you are in search of a new home insurance agent, or if you want to view competitive quotes from local agents, start searching online. Many more articles are also available for those interested in learning more about insurance and insurance agents.
by: Tom Lustina