Your homeowners insurance is more than just paperwork — it’s the financial protection for your biggest asset.
While homeowners who own their property outright aren’t required to carry insurance, those with a mortgage must have it, as lenders require coverage.
Which is why Debbie, 46, was shocked when she received an unexpected email from her homeowners insurance company telling her that her policy had been cancelled.
Confused, she tried logging into her account, only to discover that her username and password no longer worked. Alarmed, but determined to sort it out, Debbie called the insurer and explained her situation to the representative.
She said she’d received the house in a divorce and refinanced the mortgage in her name, submitting all the paperwork to remove her ex-husband from the policy. But the insurer hadn’t fully updated the records.
So when her ex got a notice about the revised coverage, he mistakenly thought it was an error — and canceled the policy. Still listed as a named insured, his request was processed without notifying Debbie.
She only found out weeks later during an escrow review — and realized she’d been living in an uninsured home the whole time.
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How to prevent insurance issues after divorce
Debbie’s sitution is hardly unique. There are two common scenarios that can lead to post-divorce insurance problems. In some cases, the insurer fails to process the removal of a former spouse correctly — even if the divorce decree clearly awards the home to one party. An administrative oversight can leave the ex-spouse on the policy with full control to cancel it.
In other cases, the removal was never formally completed. Insurers typically require proof of sole ownership, such as a revised deed or divorce judgment, along with a written request. Verbal communication isn’t enough — as long as both names remain on the policy, both parties retain equal authority.
To protect yourself, notify your insurer immediately after being awarded the home. Submit the required documentation — including the divorce decree and updated property records — and make your request in writing. Keep copies of everything and follow up until you’ve received an updated declarations page listing only your name.
In many situations, the insurer will issue a new policy under your name to ensure a clean break and prevent future interference.
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What to do if your insurance policy is cancelled
If you discover, like Debbie, that your homeowners policy was cancelled without your consent, act quickly.
- Contact the insurer immediately. Explain that you are the sole homeowner and did not authorize the cancellation.
- Provide proof of ownership and the divorce decree. Ask whether the policy can be reinstated. Many insurers have a grace period (often 30 days or less) where they can restore the policy without requiring a new application.
- If reinstatement is denied, file a complaint with your state’s insurance department. Regulators can pressure insurers to correct errors — especially if the policyholder acted in good faith.
- Secure new coverage right away to avoid being uninsured. A lapse in coverage could violate your mortgage agreement and leave you financially exposed in the event of a loss.
- Consider switching insurers. If your provider canceled your policy without verifying your consent, that may be a sign of weak safeguards. A new policy in your name ensures you retain full control moving forward.
Divorce is a time when details matter. Even small oversights can lead to large financial risks down the road. If you keep the marital home, prioritize your homeowners insurance. Remove your ex in writing, provide proof of ownership, and confirm the change is processed.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.