Wondering if you need to have both spouses on your home insurance policy quite possibly could be the furthest thing from your mind, when you and your spouse decide to move in together. There are so many things to think about when this happens that insurance considerations tend to be an afterthought, but this can be a really important consideration.
Depending on the status of the relationship, there can be differences in how adding a significant other onto a policy may or may not work. This article is meant to help you navigate this tricky yet exciting change of circumstances so that you and your spouse can be protected from whatever may come your way.
- If a homeowner is already married, the spouse will most likely be covered under the policy already, but it is best to have both spouses named.
- Some insurers may not allow a non-married spouse to be added to a policy, in which case a renters policy may be needed.
- The spouse moving in may bring over personal belongings that increase the value to an amount higher than the current coverage limit in which case a higher limit would be needed.
Who needs to be named on the home insurance policy?
First off, the spouse who owns the home needs to be named on the insurance policy. This is the most important piece. We will get into the different situations below when a spouse may need to and can be named on a policy. Named insureds are the people who are covered under the policy. Those who are not named on a policy will not be covered unless there is language in the policy that includes unnamed family members. Most standard home insurance policies have this kind of language which would then include the homeowner’s spouse, children, and other family members living on the property automatically.
When two significant others are not married and are living together, the insurance provider may not cover the significant other who is not named on the policy nor their belongings.
When one spouse owns the property and the other spouse moves in
The insurance policy will be held by the spouse who owns the house. This is a requirement for any coverage. When another spouse moves into the home, the spouse whose name is listed on the policy must call the insurance company to get their spouse named on the policy. This process is typically very simple with usually only a few basic details of the non-owner spouse needed. If the spouse is not added and something were to happen without the named insured being there to make a claim, the insurance company will not allow the non-named spouse to file a claim. This can be hugely detrimental to having a claim approved or denied as some damages require immediate documentation and filing of a claim to have any shot at being approved.
An important note about adding a spouse onto a homeowners insurance policy is that depending on the add-on spouses’ rate and claims history, the homeowners insurance premium may be increased. More coverage may be needed when a spouse moves in due to the value of the personal property items the add-on spouse brings with them to the home. Their belongings may increase the value inside the house to an amount over the coverage limit stated in the policy. Creating or updating a home inventory list could help immensely with knowing just how much coverage is needed.
When both spouses move into a new, jointly-owned home
This is a simpler situation as a new home insurance policy would be needed and during the creation of this new policy, both spouses would have their names put on it if both of their names were on the title of the home. This can also be the case even when the two spouses are not legally married to each other.
When a partner who is not married moves in
This can be a trickier situation to navigate. Some insurance providers may not allow the spouse moving in to be added to the policy if the two partners are not married. This would leave the partner moving in exposed to having to foot the bill if damage occurs to their personal belongings or any personal liability that may arise.
The way to circumvent this exposure is for the moving-in partner to obtain a renters insurance policy that would cover their belongings and personal liability.
Adding on insureds to a home insurance policy
As mentioned earlier, adding on a married partner is relatively simple and easy to do. Adding on a non-married partner may be a little trickier. The homeowner can also add other people living in the home who may qualify as insured persons, to the policy as well. Typically, in this case, there is a fee assessed by the insurance company to pay for the increased risk of having another person living in the home. Usually, this cost is in the $25 to $250 range.
What happens when spouses living together get divorced?
Divorces can create a messy and complicated home insurance situation. Say the homeowner who was named on the policy moves out of the home. In this case, the remaining spouse who was not named would have no coverage at all. Drawn-out divorce disagreements could lead to one spouse attempting to make changes to the policy without the other partner’s consent. This could happen if the partner making changes was the sole named person but could not happen if both spouses were named on the policy.
Summary
Spouses moving in together is an exciting life moment and potentially a tricky insurance situation. Spouses who are married to each other typically only take a quick phone call to the insurance company to get the spouse added on, but non-married spouses may not even be able to get the partner moving in, on to the policy. Regardless, there are options available in any situation. If you have a life change like this occurring, talk with your insurance agent to see what you need to do and what options are available.
