Insuring Today’s Lifestyle and Relationship Trends
By: Mary Thompson, Capstone Brokerage President, March 17, 2015
Life doesn’t always work out like the old rhyme,” first comes love, then comes marriage, then comes the baby in the baby carriage”. Today many young couples decide to cohabitate before marriage, some even have children prior to marriage. This can be tricky for Insurance coverage. Unmarried couples purchasing a home together have been on a steady rise. The 2000 census reported that 3.8 million unmarried opposite-sex couples lived together. By 2010, the number had practically doubled, to 7.5 million. These individuals have unique insurance needs when it comes to homeowner’s insurance and automobile coverage.
With the increase in cohabiting it is becoming more common for homeowners, and renter to have unique insurance needs. Many young first time home buyers are unmarried. This used to be a big issue with insuring the property. However, insurance companies have changed with this growing trend making it easier for unmarried couples to purchase property and insurance coverage for their home.
Here are a few different scenarios where insurance needs will be unique:
If the unmarried couple purchases a home together and chooses to be joint tenants:
If you take title as joint tenants, you share equal ownership of the property and each of you has the right to use the entire property. If one joint tenant dies, the other automatically becomes the owner of the deceased person’s share, even if there’s a will to the contrary; this is called the right of survivor ship. In this case the insurance company would have both owners listed on the policy and all processions and property would be covered according to the policy limits.
If only one of the individuals is purchasing the home:
If only one partner owns the dwelling, it is important to remember that the other partner’s possessions and liabilities are not covered by the home policy. In this circumstance the options are to add the partner to the policy as a Co-occupant or have them purchase their own renters policy. The value of processions for each person adds up quickly so it is important to list all occupants on the homeowner’s policy or determine if purchasing a renters policy is more lucrative for the couple.
If both parties are renting a home together:
Like homeowners’ insurance, renters’ insurance is simple for an unmarried couple to obtain together. Insurance companies insure the property, not the owners of the property. It should be easy to find one policy that covers both tenants, although a few companies may try to charge you more or require that you each buy your own policy.
• If the unmarried couple is trying to purchase an automobile policy that covers both individuals this can be a little harder, but not as hard as it once was.
• If each partner owns their own car, they have the option of getting separate policies, or trying to find a company that will allow them a joint policy to help save some money with a multiple discount policy.
• If an unmarried couple jointly own one vehicle, finding a joint policy may require a little shopping around but it can be done.
In any case if the couple plans to drive any of the cars it is important to have both listed as drivers on any vehicle in the home.
Every situation is unique when it comes to insurance which is why it is always smart to give all details to your agent. Often they will have an easy affordable solution.
