Wednesday, October 3, 2012

Umbrella Insurance and Divorce

People hate the act so much they call it the “D” word. An old country song even spelled it out to avoid having to sing it. Nevertheless, divorce is a part of life, as much as we all hate it. If you have umbrella insurance, and you get divorced, you’ll need to update that policy, as well as other insurance policies.

If you’ve split with a partner, get out copies of all your current common polices and decide which ones you’ll keep. In addition to your umbrella policy - or policies - you’ll need to examine homeowners, auto, life, and any other insurance policies. Next, look into any additional insurance you might need. For instance, if your former spouse provided your life insurance through his or her employer, you may need to replace that insurance with something of your own. There may also be a need for reduction, which might require closing out an insurance policy. Naturally, if the policies are in both names, you’ll need to change that.

Lastly, this might be a good time to update your coverage. Say, for example, your former spouse had a high-risk hobby or occupation. In that case, your umbrella insurance may go down. Therefore, be sure to inquire about new rates based upon your updated status.

If you have any questions at all about how a divorce will affect your insurance policies, please be sure to contact a customer service representative. 


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