AZ asks: Insurance Coverage in a Divorce

AZ asks:  Insurance Coverage in a DivorceAshleigh McFarlin is Senior Managing Agent with Joe Fowler Agency/Nationwide Insurance. She has been selling insurance for over eight years and is licensed in the state of North Carolina and has both her Property & Casualty License and Life & Health License. Currently she sells Auto, Home, Life and Business insurance. Ashleigh can be contacted directly at

AZ asks:  When do you separate your auto and homeowners insurance with your soon to be ex-spouse?

All insurance companies have different regulations about when policies can be split. Based on my experience with insurance, the auto and home policies cannot be split until a copy of the divorce papers have been received. This is also a good time to make sure the titles and registrations of the vehicles are in the spouse’s individual name.

AZ asks:  What is the best way to evaluate your coverage? Is it just based on price?

The best way to evaluate your coverage is by sitting down with your insurance agent and reviewing all of your policies to make sure you have adequate protection for your family, home and auto needs. By working with an insurance agent, you can determine what coverage is needed to fit your individual needs.

AZ asks:  When is a good time to reevaluate my coverage? Will there be any question of whether I qualify for coverage individually?

Any time you are going through a major life change such as divorce, marriage, birth of a child, a move or a loss of a spouse, it is a good time to reevaluate your coverage.  If you haven’t made any changes within a year of your last review, now is a good time to set up an appointment with your agent to review your coverage.

In answer to your second question, in my experience there has never been an issue insuring someone by himself or herself.


AZ asks:  Can you tell me what an umbrella policy is and do I need one?

A Personal Umbrella Liability policy will provide excess liability coverage over and above that provided by the underlying Standard Auto Policy, Homeowner Policy and covered watercraft insurance. This policy protects assets from large liability suits—assets may be impossible to replace, especially at an older age.

AZ asks:  Any suggestions on how to lower your homeowner or auto insurance?

Having your home and auto insured with the same company usually provides a good discount on both policies. Also, the higher your deductible is the lower the premium will be.  Just remember that you need to make sure that you have the amount of the deductible saved and put aside in case you need it.

AZ asks:  Do I need replacement homeowners insurance?

ALL home policies should have Replacement Cost on the Dwelling and on Personal Property.  Replacement Cost pays to replace or repair your property without depreciation being taken from the value of the property as provided by your policy and state law.

In North Carolina, you should always have Replacement Cost Plus on the dwelling of the home.  Replacement Cost Plus pays an additional 25% of the Dwelling coverage limit if there is a total loss of your home and additional money is needed to reconstruct the home as provided by your policy and state law.

Ashleigh McFarlin is not affiliated with LPL Financial.

About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™). If you have comments on this post contact Ann Zuraw

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