How To Remove Spouse From Homeowners Insurance?

If both of you are listed on the house insurance policy and attempting to remove someone from the policy, the removal of a party will depend on who is attempting to remove whom. If you are the primary policyholder, you can drop your ex-spouse from your policy by providing a copy of your divorce decree to your insurance carrier. Suppose you're unsure who the primary policyholder is. In that case, it's typically the person who called in to set up the policy (even if you and the primary policyholder both signed the deed, loan, or policy).

To put it into context, consider John and Jane, divorcing. If John contacted their insurance provider to establish their homeowners' policy, he would be identified as the principal policyholder, even if he listed Jane as an additional insured. Even if they went into the office together to set up their house insurance, they might have been required to agree on John as the policyholder.

As a result, John would have the authority to provide their insurance provider with a copy of their divorce decree and request that Jane be dropped from the policy. Depending on the carrier, they may require Jane's consent to make the change. However, Jane's consent is not required with some carriers.

To ascertain who ultimately controls your home insurance policy, they'll seek the solitary name on the deed, the mortgage, or the policy itself. As a result, it's critical to always know whose name appears on which piece of document.

Find yourself in Jane's shoes and encounter difficulties with this arrangement. You may be able to argue that you have a greater "insurable interest" in the property than the insurance carrier has listed as the policyholder.

What is a term used to refer to insurable interest?

When it comes to home insurance, your provider will want to work with the individual who has the most invested in the property and is most likely to take care of it. As a result, the individual who has an insurable interest in the property typically has invested the most in it. For instance, if your spouse moved into the house you purchased after you married, you would have a higher insurable interest rate because you have made more mortgage payments.

Additionally, someone may have insurable interest if they continue to reside in residence following the divorce but are not the policyholder.

Consider the John and Jane example. Jane is the primary caregiver for their children and is adamant about not uprooting them. However, John retains ownership of the policy or deed. If they can work out a deal in which Jane retains the house and John vacates, Jane will have a greater insurable interest in the property because she and the children will remain there.

Both partners would need to obtain written approval from their insurance carrier indicating that Jane is now the primary user of the policy. It's a more convenient approach to maintain the house's policy without canceling the combined policy and forcing Jane to obtain entirely new homeowners insurance.

You may be wondering: If you are the primary policyholder for your house insurance and wish to transfer ownership to another individual mentioned on the policy, couldn't you simply cancel your coverage? No, in a nutshell. When you remove your name from a house insurance policy, the policy does not automatically transfer to the other party specified.

The policy would theoretically be left without a principal policyholder if you attempted to withdraw. In that instance, your insurance company may advise you to simply show the other party's insurable interest or cancel the policy entirely. However, the latter may be more challenging in the long run.