Why it’s so Important Not to Forget Your Homeowner’s Insurance Policy When You Get Divorced!

If you follow our blog here on the Kronzek Firm’s midMichigan Family Law site, then you already know we’ve been addressing the issue of insurance quite a bit lately. That’s because it’s so important (even if it isn’t the most exciting subject to talk about), and forgetting to deal with these things can make life really challenging for you down the road.

A picture of cupped hands holding a bubble with a picture of a home inside it.

Having looked at the importance of changing over your life insurance policy after your divorce is finalized, and then also addressing your health insurance policy, we’d like to take a moment to discuss your homeowner’s insurance policy as well. It may not seem like a big deal now, but down the road it can create a lot of complications for you if it doesn’t get handled in a timely manner.

Home ownership changes mean homeowner’s insurance policy changes

When a couple parts ways, usually one of them stays in the family home, or both of them leave and end up living in new places. If you and your spouse decide that one of you will be keeping the family home after the divorce is final, be sure that only the person staying in the house stays on the homeowner’s insurance policy.

It’s important to remember that a home has to be insured by the actual property owner. So if the house goes from being in both of your names to just being owned by one of you during the divorce, your homeowner’s insurance policy needs to reflect that change of ownership. Not making the necessary changes could mean that your insurance company won’t cover damages if there’s a fire, a flood, or some other disaster. And you’ll get stuck paying out of pocket for the repairs!

If you’re moving out, then you need to get off the policy

For people moving out of their Michigan family home before or after a divorce, it’s very important that they remove their name from the insurance policy. Homeowners’ insurance defines children and other residents as individuals who live in your home. If you’re no longer living in the home, then it’s important that the policy no longer lists you as a resident.

If you move out and buy a new home you’ll need to get insurance on that home in your own name. If you choose to rent, then we encourage you to get renter’s Insurance to protect your belongings from possible fire, water damage, and burglary. Especially if you received valuables in the divorce settlement, like art, jewellry, or antiques.

Your divorce attorney will help you protect your interests

If you’ve got an experienced and hard working family law attorney handling your divorce, they’ll help you make sure nothing slips through the cracks. Handling your insurance policies, both during and after a divorce, can be stressful. In addition, you may not be sure of what the right course of action is, or what the law requires of you. 

Talk to your family law attorney at the Kronzek Firm. We’re familiar with all the intricacies of the law, and can advise you on what the right course of action will be in your specific case. We can be reached at 517 886 1000.