Here’s your reminder to review your insurance policies

Keep in mind that if you don’t remove the ex-spouse from the insurance policy, the insurance company may make any payments due for any claim to both of the parties listed on the insurance policy. Once that check is cut to both names, you’re facing an awkward conversation at best, and a contentious one at worst, when you ask your ex-spouse to sign over the check. Better to simply take care of the insurance issue once there is a change of ownership on the home.

When you improve your home, you should reevaluate the amount of insurance you carry to make sure the policy limits are sufficient to cover you for the loss given the improvements. (Your insurance company can help you evaluate whether you need to increase your policy amount, and by how much.)

When you sell your home, you should cancel the policy. There is no need to keep paying on a home that you no longer own.

Lastly, and separately from your excellent observations, we remind our readers to review their insurance coverages on their homes. Recent climate change events and catastrophes are a reminder that a total loss can occur, and it’s better to review your insurance coverages before disaster strikes.

We will never forget when friends of ours were traveling and lightning struck their home in the middle of the night. By the time the fire department arrived, the only thing left of the home was part of a wall and the chimney stack.