The Markham Group Blog

How Divorce Changes Your Auto and Homeowners Insurance in MA

A divorce is a very stressful time. There are so many changes about to take place in your life. You have so much to do and you may not know where to start.  Concerning your auto and homeowners insurance, we have put together some insurance items you will need to consider when going through a divorce. 

An important item that will change from a divorce is your liability insurance.  Personal liability insurance is insurance that guards the policyholder from legal expenses resulting from a lawsuit.  This includes, but is not limited to; attorney fees, damages, pain and suffering resulting from you or a household member’s negligence.   Personal liability insurance is included in your home, condo or renters insurance policy. Personal liability will also follow you were ever you go. 

 Homeowners Insurance

1. If wife/husband moves out, the insurance will need to be changed to husband/wife’s name with the other as additional insured.  This will give the person moving out, liability insurance where the house is concerned until the deed is changed but it will not give them coverage in their new home
2. Whoever moves out should get their own policy (home, condo, renters) to cover them for liability and coverage for personal belongings.  Even though the home insurance policy might still be in your name, it will not cover any personal belongings that are not left in the house. Nor will it cover you for personal liability that is not related to the house.
3. Umbrella policies can be a separate policy or part of the homeowners policy.  Umbrella policies can be purchased to increase your liability and protect you in excess of your home and auto policy. If you currently have one, this will also need to be changed. Talk to an insurance agent about this coverage.

 Auto Insurance

1. If the car you are taking is not in your name alone, you will have to change the ownership.  More important if the car your spouse is driving is in your name, you will want to change ownership to them because of the liability exposure to you (see personal liability definition).
2. When you change the ownership on the car, you will have to register it in your name alone and get new plates, registration and title.  The title will need to be signed over to you, in order to begin this process.  If the car is financed, you will have to “buy” it out either with cash or another loan.  There is also a form to complete exempting you from sales tax for the registry.
3. Because you are changing ownership on the car, you will have get a state inspection on the vehicle, even if this was just completed.
4. If you move, change your address with your insurance agent.  An auto claim can be declined if the insurance company does not have your proper garage address.
5. You will want to add any new household members as drivers, even if they have their own car and auto insurance.  Auto insurance will cover you from a covered loss resulting from an auto accident.  If you allow someone to drive your car and they get in an accident causing injury, you can be found liable.

These are only some of the insurance items to consider when getting a divorce.  Each individual has their own unique insurance requirements.  Some of the items listed above are related to having your Insurance in Mass and do not apply to other states.  It is recommended that you meet with your insurance agent and review all the insurance changes that are necessary to properly protect you while making this transition in your life.

This article was written by Mindy Lichtman.  Mindy is the Personal Lines Advisor at Markham Group, Inc.  If you have any additional questions, please do not hesitate to call or email our office.