Going through a divorce is not easy. I know because I recently went through an expensive one! With more than half of all marriages ending in divorce you need to be aware of coverage gaps with homeowners insurance especially relating to liability coverage.
Most divorce decrees will spell out which party is required to pay which bill relating to children but what happens if parents have joint custody? Which homeowners insurance policy will provide liability coverage if your son or daughter is sued for a negligent act?
Let’s use an example. Your son stays with you 50% of the time and 50% with your ex. Your son is accused of bullying another student at school. The victim files a lawsuit claiming harassment and slander for $1 million dollars. Who’s homeowners insurance will provide coverage?
In most cases, the parent’s policy who had care, custody and control at the time of loss will be primary. If the time of loss is in question this presents a gray area and insurance companies are likely to point the finger at the other company. You need to be aware of what your policy will cover and what it will not.
Lets take it a step further and say one parent has homeowners insurance and one parent does not. Will the parent’s policy who has homeowners insurance automatically provide coverage? Maybe or maybe not. Again you need to review your policy and become familiar with exactly what is covered and what is not.
The Andrew Agency provides service to clients in Virginia, Maryland and South Carolina. If you are going through a divorce and have questions about your insurance contact The Andrew Agency at (804) 320-2886.