Insurance, Divorce and Your Home
Key Points
  • When you own a home or if you rent, often you have to have some type of insurance (homeowners or renters). It is important to understand your coverage and what your insurance does not cover. During a divorce it is a good idea to review your insurance policies.

To properly protect your home and your car, you need two basic insurance policies:

Homeowner's or renter's insurance, which covers the value of your belongings against physical damage and theft.

Things you should know about Homeowner's Insurance:

What is home insurance?

A home insurance policy is a contract between you and an insurance company. In exchange for your premium payment, the insurance company promises to pay for financial losses caused by a broad range of calamities that could damage your home or your property, if they occur during the period of the contract and subject to the terms and conditions of your policy. The insurance company also promises to pay damages resulting from injuries or damage to other people, for which you are held legally responsible.

What affects your home insurance rates?

The location of your home - A house near a fault line in California costs more to insure than the same home in Idaho. Homes built on sand are also more costly than homes built on bedrock. (It's a safe bet the little pigs that built their houses of straw and twigs would have paid a pretty penny for homeowner's insurance if they had survived that encounter with the wolf.) The year it was built - Statistically, newer homes are less susceptible to fire and other hazards, and are therefore less costly to insure. Closeness to a fire station and fire hydrants - The greater the chances of putting out a fire once it starts, the lower your premiums will be.

What can you do to reduce them?

Get a smoke detector - It's the law in most states, and a few extra smoke detectors will help to lower your premiums - - so will fire extinguishers.
Lock up - Deadbolt locks will increase your security and reduce your rates.
Make those improvements - Home improvements to older homes will reduce the likelihood of a loss, and therefore cut your premiums. Replacing the roof, upgrading the pipes, and rewiring the house will help reduce your insurance rates.

Some items require special coverage

Homeowner's/renter's policies typically provide only limited coverage for specific items of value like jewelry and works of art. If you own items whose value exceeds the standard dollar limits of coverage in your policy, you may want to consider buying extra coverage in the form of an insurance floater. Here's the maximum amount of insurance (insurers call it 'the limit of indemnification') most insurers stipulate for specific items in a standard homeowner's policy:


Money, bank notes, bullion, coins and metals
Securities, manuscripts, stamp collections, and valuable papers
Water craft including their trailers, equipment and motors
Grave markers
Property on the residence premises used for business purposes
Property away from the resident premises used for business purposes
Loss of jewelry, watches, fur, and precious and semiprecious stones by theft
Loss of firearms by theft
Loss of silverware, silverplateware, goldware, goldplateware, and pewter by theft
Limit of Indemnification

$ 200
$ 250

Related Article Archives
Child Support
Insurance & Divorce
Spousal Support
    All Article Archives

Related Categories
Collect & Paying Child Support
    All Categories
Related Forums
Child Support
Spousal Support
    All Forums

Resources & Tools

Bookstore Promotion Discount

Start Your Divorce Online Start Your Divorce
Several Options to Get Started Today.
Divorce Tools Online Divorce Tools
Keeping it Simple to Get the Job Done.
Divorce Downloads Download Center
Instantly Download Books, Guides & Forms.
Divorce and Custody Books Discount Books
Over 100 of the Best Divorce & Custody Books.
Negotiate Online Negotiate Online
Settle your Divorce and Save.
Custody and Support Tracking Custody Scheduling
Make Sure You Document Everything.
PROTECTION AFTER DIVORCE -- COBRA, the Consolidated Omnibus Budget Reconciliation Act, protects ex-spouses even after one of them remarries, for a fixed period of time, as well as employees who lose their positions. COBRA establishes a time line for picking up coverage (which must be religiously observed), and it is very expensive.

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code:


Featured Book Divorce & Money: How to Make the Best Financial Decisions

Divorce & Money: How to Make the Best Financial Decisions

Divorce & Money: How to Make the Best Financial Decisions


Featured Download Life Insurance and Divorce

Life Insurance and Divorce

Life Insurance and Divorce

Guarantee Official PayPal Seal Facebook Twitter Versign Secure Site