When you get married, your personal net worth and property value will likely increase. You and your new spouse will likely combine homes and material possessions. That will make you both responsible for these new assets. You’ll have to adjust your homeowners and possessions insurance appropriately. How can you do so?
Combining your belongings with your spouse’s will require some time and effort. You must address ownership, insurance obligations and more. Don’t hesitate, therefore, to start the process immediately upon marriage.
Why Combining Assets Matter
Every newly-married couple will combine their material and monetary assets differently. When it comes to physical items, couples’ preferences will often dictate the combination.
For example, one spouse might sell their home and certain possessions to move into the other’s place. Still, they will likely bring other belongings along with them. This will mean that one party will assume responsibility for the other’s things (regardless of who moves in with who).
You and your spouse will need to take this new ownership status into account. In many cases, you will likely have to take very little action. However, in others, you might have to update ownership of certain items. Both spouses might sign onto car deeds, the home's deed or particularly-expensive belongings.
Furthermore, you almost always must make changes to your home's possessions insurance. This might prove the most necessary step in increasing your combined security.
Insuring These Items
Upon marriage, the value of your combined assets will increase. This will trigger an increase in the possessions coverage of your home’s insurance.
With increased coverage, you’ll be able protect all items belonging to both spouses. After all, the possessions of two are almost always worth more than the possessions of one. Your policy must now reflect that new value.
You need to set a new financial limit to the total possessions coverage available to you. You can do so by taking an appraisal of the items in your home that you would need help to replace after a covered loss. Items to add to the appraisal might include:
- Electronics (computers, cell phones, TVs)
- Sporting gear
- Certain mementos
Often, you have few limits on the amount of possessions coverage you can buy. However, you might have to provide proof of the value of certain items to the insurer. An appraisal sheet or receipt will likely suffice in these situations. Furthermore, you might need to separately insure, or carry riders on, particular items. These might include items such as jewelry, art and certain clothes, using a policy rider. That will help guarantee that you can protect all of the most-important items in your new home.
Also Read: Tips to Help You Save on Homeowners Insurance