Who you live with and your relationship to them can have an impct on your premium. As your relationship and living status changes, make sure to update your policy. Without your policy properly updated, you could have too much or too little coverage on your vehicles.
Single with Roommates
Whether your home is owned or rented, you should have a policy that covers your home and your possessions. Anyone can cause damage to your home whether it be your guests, your roommates, or yourself.
If you are renting, you should be purchasing renters insurance. Each person whose name is on the lease needs their own policy. If one name is not on the lease and they do not have a policy, then their possessions are likely covered under the policyholder’s insurance.
If you’re living with roommates, your insurance company may even want to add your roommates to your auto insurance. This can serve as a preventative measure in case they have access to the vehicle an could potentially get into an accident with it. It would be much worse to have your roommate damage your car and then find out it will not be covered.
Most states (including Connecticut) require insurance companies to recognize domestic partners under the same auto policy. Depending on the company, if you and your significant other are not domestic partners, you may need to purchase separate policies as roommates would do.
Sharing a home does not necessarily mean that you are sharing a car, but if your partner uses your vehicle at all, they should be listed on your auto insurance policy.
Some couples may elect to insure themselves separately due to driving records or easy payments. However, you might be eligible for a discount if you combine your insurance policies into one.
Once you get married, your spouse will be covered under your homeowners, renters, or condo insurance. However, you still need to inform your insurance agent of your status change (maybe even invite them to the wedding!).
Make sure to review your coverages to make sure you are covered for all of your new additional possessions. For example, you may want to schedule your engagement ring and wedding bands as they are often worth more than what your insurance will cover.
If you are married but separated– with your spouse living elsewhere–they are no longer considered an insured on the policy.
Your auto insurance should also be combined. If your spouse gets into an accident while driving your car, you want to make sure you’re covered. Not to mention, you’ll likely receive a discount by combining your policies.
If you and your spouse are divorcing, and one of you is keeping the home, you will need to reissue the deed in the sole owner’s name.
The homeowners policy is tied with the deed and insures whoevers name is listed there. If both names are on the deed, deleting your spouse from the policy is not enough.
You’ll also need to get a new title issued for your car if both spouses are listed as owners. Keep in mind that when an accident occurs, the other driver goes after the car owner, not the driver.
Your umbrella policy increases liability coverage for both your home and auto insurance. As with all of your other policies, your umbrella policy should be reviewed anytime you make big life changes.
Whether it is combining households or divorcing, your coverages need to be adjusted to fit your new life.
Need to reassess your policies? StateChoice can review your coverages and make recommendations, even if you are not currently insured with us. Give us a call 860-232-1234.
For more info see article in The Hartford where this information was found.