The Right Insurance Coverage During and After Divorce

By Andrea Vacca

One often overlooked area in a divorce is your insurance coverage. Having the right insurance coverage during and after a divorce will protect you and your assets. Let’s break down what you need to know, using insights from one of our Better Divorce podcast episodes, Ensuring Your Assets Are Properly Protected By Your Insurance During and After Divorce with Michelle Hirsch.

Michelle Hirsch is senior vice president at Brunswick Companies, a multi-generational family-owned property and casualty insurance brokerage serving individual clients and businesses nationwide.

Health and Life Insurance: The Basics

Most people understand the importance of maintaining health and life insurance during a divorce. Ensuring continuous coverage is vital to avoid any gaps that could leave you or your children vulnerable. Make sure to review your current policies and update beneficiary information.

The Importance of Keeping Your Broker Informed of Changes in Your Circumstances

In addition to maintaining health insurance and life insurance, it’s crucial to make sure your property insurance and liability coverage’s are up to date as well. Michelle emphasizes that your insurance broker or carrier will not know about changes in your living situation unless you tell them. This means it’s your responsibility to inform them about any new developments, such as moving into a new apartment or changes in asset ownership.

For example, if you move out of the family home and into a new apartment, you might think that a simple renter’s insurance policy is enough. However, as Michelle explains, you’re still liable for the home you co-own with your ex-spouse until ownership is legally transferred.

“Insurance follows the title,” says Michelle. “Until the title is changed, you need to ensure the property is adequately covered.” One solution might be adding your new apartment to your existing homeowner’s policy as a secondary location. This way, your umbrella policy, which provides additional liability coverage, extends to both your new and old residences.

In short, don’t keep your situation a secret from your broker. They can help you think through these types of complexities of property and casualty insurance during a divorce and ensure that you don’t have gaps in coverage.

Vehicle Insurance: Shared Use

Sharing one car is common among our New York City clients, even after they are no longer living together. If you and your ex-spouse share a car, it can be tricky to determine the right insurance coverage that you need.  Like property and liability insurance, insurance follows the title of the car. If one person owns the car, that person should have the insurance policy in their name, while the other can be listed as an additional driver. For occasional use, permissive use coverage might be sufficient, allowing either party to drive the car with the owner’s permission.

Insuring Valuables: Art, Jewelry, and Collectibles

Dividing valuable items like jewelry, art, and collectibles can be complicated. It’s important to know who owns these items and where they are kept. Michelle recommends updating appraisals every five years to ensure accurate coverage. Whoever has possession of these items should be responsible for insuring them.

“Taking ownership of the insurance policy is key,” says Michelle. “If you’re keeping the jewelry or art, make sure you’re the one insuring it.” This avoids situations where one party assumes the other is maintaining coverage, only to find out later after an asset has been lost, stolen or damaged, that the items were uninsured.

Security Comes From Knowing You Have the Right Insurance Coverage in Place

Everything changes during a divorce, but ensuring you have the right insurance coverage can provide peace of mind and financial security. By staying proactive and informed, you can protect yourself and your assets from unexpected complications. Take the time to review your insurance policies, communicate with your broker, and seek professional legal advice when necessary. Remember, safeguarding your future starts with the decisions you make today.

Contact Vacca Family Law Group

At Vacca Family Law Group, we understand the unique challenges of divorce and the importance of working with your current advisors and other professionals to protect you financially. Our Collaborative Divorce attorneys and Mediators are here to offer tailored advice, helping you make informed decisions during this critical time.

Whether you’re facing divorce or simply considering it, being prepared and informed can provide you with peace of mind for the future. With our guidance, you’ll be equipped to navigate any challenges that come your way. Call us at (646) 798-4603 or contact us online to schedule your free introductory call.

Vacca Family Law Group is located at One Grand Central Place, 60 E. 42nd St., Suite 700, New York, NY 10165.

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