“We have this hope as an anchor for the soul, firm and secure.” – Hebrews 6:19
The loss of a spouse is a very difficult and painful period of grief. The unpredictable timing and odd combination of emotions that hit you during grief can leave you confused and despairing. Amid the grief and turmoil after a loved one’s passing, questions about your home owner’s insurance policy are naturally not your first priority. However, during this time the surviving spouse is left to make sure that all insurance policies left in place are up to date and in effect. As difficult as this time is, it is a good time to review each policy to ensure that existing coverage is accurate and up to date.
As soon as possible, contact the company that holds the insurance policy on your home and inform the representative of the passing of your spouse. Upon the death of a policy holder, the surviving spouse is allowed to maintain the home owner’s insurance policy merely by continuing to make premium payments. When a husband and wife are both listed on the homeowner’s insurance policy, it is possible to simply remove the spouse and only list the surviving spouse. It is important to notify the insurance carrier to avoid any delays or issues with any future claims. The insurance company will comply in removing a named insured with proper documentation such as copy of a death certificate. However, you also have the option to request to have the policy rewritten without the deceased spouse. This option might be best as it is a good time to review current coverage and may save you money.
In reviewing the current home policy, you want to look at these key coverages:
Coverage A (Dwelling) – This coverage pays to repair or rebuild your home’s physical structure, such as walls, floors, roof, windows, support beams, and foundation if your home is damaged by a covered event (fire, wind, theft, etc.). This is determined by a current Replacement Cost Estimator. This would be a good time to ask the agent to run a new Replacement Cost Estimator to make sure that the home is not over or underinsured. Especially, if you have done any major updates or remodeling on your home.
COVERAGE C (Personal Property) – This coverage helps pay for your personal items that been damaged, destroyed or stolen due to a covered-peril. The most common personal items covered are furniture, computers, tv, electronics, clothes and sports equipment. It is pivotal to cover those personal items that mean the most to you.
Coverage E (Comprehensive Personal Liability) – This coverage protects you against claims arising from accidents to others on your property. It can help pay for things like: The injured party’s medical bills. Repair costs for the person’s damaged property. Your legal expenses if the claim escalates into a lawsuit.
Scheduled Personal Property: This is a supplemental coverage that extends coverage beyond the standard protection provided in a homeowner’s insurance policy. Scheduled personal property can ensure full coverage of expensive items, such as jewelry, paintings, musical instruments, guns, etc. This is a good time to review any scheduled items that might already be listed on your current policy. You might want to remove items that you no longer have or add items that you have acquired that were not previously listed.
Different Damage/Different Policies: Home owner’s insurance typically covers damage caused by the majority of disasters, but there are some exceptions like earthquakes and floods. For certain risks you will need a specific form of coverage, such as Earthquake or Flood Insurance.
If the best option is to write a new policy after the passing of your spouse, be sure to ask your agent what new qualifying discounts you might be eligible for. Some of these discounts can include: Credit Rating Discount, Continuous Coverage Discount, Security Discount (burglar and fire alarm), Bundling Discount (if both home and auto policies are written with the same agent), Mature Discount, etc. These discounts can provide you with additional savings on your current premium.
Anchor Insurance Agencies encourages you to speak to your current agent to go over your current homeowner’s policy, however, we are always happy to review your current policy with you and make suggestions or answer any questions or concerns you might have.
Jennifer Bick
Anchor Insurance Agencies
Personal Property Lines Specialist
Direct Number: 252-756-2024
Office Number: 252-756-1700 ext. 1250