Do Both Spouses Need to Be on Homeowners Insurance?

Purchasing a home and moving in together is an exciting milestone in any relationship. But beyond deciding who gets custody of the couch, there are important logistical considerations when combining households – including homeowners insurance.

Do both spouses need to be listed on the policy if you’re married or jointly own a home? Or is only one spouse required?

Below we’ll explore how marital status, homeownership, divorce, and other factors impact who must be named on a homeowners insurance policy.

Overview

In most cases, the spouse who owns the home should be listed as the named insured on the homeowners policy. However, there are some scenarios where both spouses need to be included:

• If you jointly own the home, both spouses should be named insureds.

• Even if only one spouse is on the title, in many states the other spouse is automatically covered as a resident relative.

• Adding your spouse as a named insured guarantees their ability to file claims and make policy changes.

• If you divorce, you’ll need to notify your insurer and likely remove your ex-spouse from the policy.

• Spouses who are just dating or cohabiting may need to purchase separate renters insurance policies.

Next, we’ll take a deeper look at how homeownership, marriage, divorce, and other situations impact who must be the named insured on a homeowners policy.

Named Insureds vs Automatic Coverage

With homeowners insurance, people fall into two categories:

Named insureds – Those listed by name on the policy, who can file claims and make changes.

Automatic insureds – Relatives like spouses and children who live with a named insured and are covered by default.

Ideally, both spouses should be named insureds to guarantee full policy rights. But even if only one spouse appears on the policy, the other may still be covered automatically as a resident relative.

Let’s break down the nuances:

Married Homeowners

If you’re legally married, the spouse who owns the home should always be a named insured.

In community property states, both spouses jointly own possessions acquired during the marriage, including real estate. So for homes bought after marriage, each spouse should be a named insured.

Even in states where assets aren’t automatically communal, many insurers still extend automatic coverage to resident relatives – including spouses.

For example, a State Farm homeowners policy states:

"Insured" means you and residents of your household who are:a. Your relatives; or b. Other persons under the age of 21 and in the care of any person named above.

This provides coverage for a spouse living with the policyholder without needing to be a named insured.

However, automatic coverage may not guarantee the same policy rights. Adding your spouse as a named insured provides more certainty.

Unmarried Couples

If you’re in a relationship but not legally married, you’ll likely need to get individual renters insurance policies.

Domestic partners and cohabiting couples often don’t qualify for automatic coverage under their partner’s homeowners policy. As unmarried couples, you each should be the named insured on your own renters insurance policy.

An exception is if you jointly purchase and occupy a home before marriage. In that case, both partners should be named insureds on the homeowners policy.

Divorced Homeowners

Following a divorce, you’ll need to remove your ex-spouse from the homeowners insurance policy during the separation process.

This holds true even if your ex will continue residing in the home until property division is finalized. To maintain coverage, your ex will need their own renters policy until the transfer of ownership is complete.

Be sure to inform your insurer immediately when you and your spouse begin the divorce process.

Why Add Your Spouse to Insurance?

Even when automatic coverage applies to a resident spouse, including them as a named insured comes with advantages:

Guaranteed claims payments – Your spouse can file a claim even if you’re traveling or incapacitated.

Policy changes – Your spouse can adjust coverages, update contact info, or make other modifications.

Easier renewals – Everything remains current even if ownership changes due to death or divorce.

Spousal consent – Adding your spouse provides consent if any changes affect property interests.

Continuous coverage – Keeps insurance intact without gaps if a separation occurs.

While not legally required, adding your spouse as a named insured provides maximum certainty your family is protected.

Impact on Homeowners Insurance Costs

Does adding your spouse increase your homeowners insurance premium? Not necessarily.

In fact, being married can actually save money on homeowners insurance in some cases due to:

• Multi-policy discounts if you bundle your spouse’s auto insurance
• Potential credits for retirees, disability, or other qualifications
• Higher claims satisfaction among married couples

However, your spouse’s poor claims history or credit score could potentially increase your rate. Overall though, any rate hike from including your spouse should be marginal.

Before adding your partner, request a quote from your insurer to see the exact impact on your premium. This will help you make an informed decision.

Can You Remove a Spouse?

During a separation or divorce, homeowners will want to remove an ex-spouse from the insurance policy. The process varies based on homeownership:

If the home will be sold – Let your insurer know this address will no longer be insured under your policy as of the estimated closing date.

If you’re keeping the home – Contact your insurance company to remove your ex-spouse from the policy and provide documentation of your solely owning the residence.

If your ex will retain possession – Cancel your active policy and your ex should get their own homeowners or renters insurance in place. Make it clear you’re severing insurance responsibilities.

When initiating a divorce, be sure to inform your insurer right away to start the process of policy changes. Act fast so you avoid any gaps in coverage.

Options for Insuring a Jointly Owned Home

Married couples who jointly own a home have a few options when it comes to their homeowners insurance policy:

Joint spousal policy – Both spouses are named insureds on the same shared policy. This provides equal rights and ownership.

Individual policies – Each spouse has their own separate homeowners insurance policy on the jointly owned home.

One primary policy – The spouse residing in the home carries the primary insurance policy while the other has a landlord’s policy.

A joint policy with both spouses named is usually preferred for simplicity and convenience. But individual policies or adding supplemental landlord’s coverage can also work.

How you structure insurance depends on your shared finances, who resides in the property full-time, and other factors.

Filing Claims During Separation

If you’ve initiated divorce proceedings, how does that impact filing homeowners insurance claims?

Despite being separated, if your estranged spouse is still a named insured, they normally can still submit claims until removed from the policy.

That said, insurance companies may scrutinize claims more carefully during separations to prevent fraud. Providing documentation and communicating with your insurer is key.

For liability claims, fault and legal responsibility also get factored in depending on circumstances of the incident.

The bottom line is marital status changes complicate the claims process. So proceed with caution if you and your spouse are living separately but insurance changes haven’t been made yet.

Tips for Updating Insurance After Marriage

To make sure you and your new spouse have adequate homeowners insurance coverage:

Review policy limits – Determine if increased dwelling and personal property limits are needed now that you’re combining households.

Inventory possessions – Create an up-to-date home inventory so all belongings are sufficiently covered.

Assess risk – Consider how any changes in security features, neighborhood, or other factors impact your risk profile.

Add spouse as named insured – Contact your insurer to include your spouse on the policy to guarantee their coverage rights.

Review discounts – See if any new discounts apply, like multi-policy bundling or claiming a homestead exemption.

Re-evaluate deductible – Consider if you should increase or decrease your deductible based on combined finances and risk tolerance.

Update beneficiaries – Review beneficiaries for life insurance policies and retirement accounts so your new spouse inherits appropriately.

Regularly reviewing your insurance needs together allows you to enjoy life as newlyweds without worrying about gaps in protection.

Who Should Be the Primary Insured?

For a joint spousal policy, you’ll need to decide which spouse is labeled as the primary insured. There are a few factors to consider:

Homeowner – The spouse named on property ownership documents may need to be the first-listed policyholder.

Primary resident – The spouse who lives in the home full-time is often designated as the primary insured.

Household contributor – The spouse who financially contributes more to the household may be listed first.

Existing insurer – If one spouse already had coverage with an insurer, they may need to remain the main policyholder when adding the other spouse.

Age – Older spouses may be listed first since they’re more likely to have an established credit and claims history.

There’s flexibility in choosing the primary insured between married homeowners. Weigh the above factors along with insurer requirements when deciding who will be Policyholder #1.

Insurance for Married vs. Single People

Marital status can impact some aspects of homeowners insurance:

Premiums – Married couples may see discounts for bundling policies. Rates also tend to be lower for homeowners versus renters.

Eligibility – Insurers are sometimes more likely to approve married applicants than single people since they pose less risk.

Coverage needs – A married homeowner may need higher limits to cover a spouse’s belongings. Renters may only need personal property protection.

Claims satisfaction – Research shows married policyholders tend to be less likely to file claims and quicker to notify insurers when they do.

Policy options – A married homeowner can purchase a joint policy. Single tenants need their own renters insurance as the named insured.

Evaluate your unique situation to determine the right insurance approach based on marital status, homeowner arrangements, and other specifics.

The Bottom Line

While your marital status can impact homeowners insurance, the biggest factor is homeownership.

If you and your spouse jointly bought the home, both should be named insureds on the policy. Even if only one owns the residence, most states automatically cover the other spouse when residing together.

For true protection, it’s wise to add your husband or wife as a named insured to guarantee their coverage rights. Just be sure to inform your insurer of any changes during separation or divorce proceedings.

With the right homeowners insurance policy in place, you and your spouse can focus on enjoying life together rather than worrying about insurance gaps.