By Dan Burghardt, Owner of Dan Burghardt Insurance Agency
Divorce is one of life’s most significant transitions—and it brings more than just emotional and financial adjustments. One of the most overlooked aspects of a separation is how it affects insurance coverage. Whether policies were shared, bundled, or managed by one spouse, those arrangements need to be updated to reflect the new reality. Failing to make the proper changes can result in coverage gaps, financial vulnerability, or costly errors.
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
After 40 years in business, Dan Burghardt Insurance has grown into one of the leading independent agencies licensed in both Louisiana and Mississippi, with a focus on communities like New Orleans, Metairie, Kenner, Gretna, St. Bernard, Slidell, Mandeville, Covington, Baton Rouge, Hammond, Houma, Thibodeaux, LaPlace, Lake Charles, Bossier City, Central, Lafayette, Monroe, Shreveport, and Alexandria.
Here’s a practical breakdown of insurance changes to make once a divorce is finalized:
1. Health Insurance
If you were previously covered under your spouse’s employer-sponsored plan, you’ll need to make other arrangements quickly. The policyholder should notify their HR department or carrier to remove the ex-spouse. COBRA continuation coverage may be an option for a limited time, but it’s important to shop around for affordable alternatives through the federal or state marketplace. Private health insurance may also offer better long-term value based on your age, health status, and budget.
2. Auto Insurance
Divorcing couples with joint auto policies will need to separate them. Each person should establish a new, individual auto policy. This means updating garaging addresses, listed drivers, and titled ownership of the vehicle. Be aware that multi-car or bundled discounts will likely be lost, which could change your premium. A knowledgeable agent can help restructure the policy to ensure proper coverage while minimizing new costs.
3. Homeowners or Renters Insurance
If one party retains the marital home, the homeowners policy must be updated to reflect sole ownership and remove the former spouse as a named insured. In cases where the home is sold or both parties move out, separate homeowners or renters insurance policies will need to be written. Coverage should reflect the new property’s value, location, and contents. It’s essential to protect your new space with an updated policy that’s accurate and current.
4. Life Insurance
Life insurance often gets neglected during a divorce, but it’s a critical component of future financial planning. The first step is reviewing your beneficiary designations. Many people forget their ex-spouse is still listed, which can cause major issues later. If you are required by a court order to maintain a policy for alimony or child support, that should be clearly stated and structured into the policy. Otherwise, update your beneficiaries and reassess coverage based on your current responsibilities.
5. Disability Insurance
Disability insurance is another area that deserves attention. This policy helps protect your income in case of illness or injury. Post-divorce, your financial obligations and dependents may change. It’s important to review benefit amounts, waiting periods, and most importantly, your listed beneficiary. Any existing policies should reflect your new financial picture and personal priorities.
6. Umbrella Policies
Umbrella insurance offers an extra layer of liability protection. Many couples maintain one shared umbrella policy that covers both parties. After divorce, that coverage must be split into two separate policies or canceled if no longer needed. Each individual should evaluate the level of liability protection required based on income, assets, and lifestyle. Starting from scratch with a clean, independent policy can help avoid confusion and ensure proper coverage.
7. Other Policies Often Overlooked
It’s easy to forget about supplemental policies like dental, vision, travel, pet insurance, or any other niche coverage that might have been bundled or shared. Each of these should be reviewed and either rewritten under individual names or discontinued if no longer necessary. Even small policies can have big consequences if they’re not properly updated.
A Clean Slate with a Clear Strategy
Divorce is challenging enough without insurance issues adding to the mix. The goal is to prevent future complications by making clear, proactive adjustments. Insurance should be part of the fresh start—not a lingering headache from the past.
Let a licensed insurance professional help navigate the process. This isn’t just about canceling and rewriting policies—it’s about building a new framework that reflects your current life, your new goals, and your specific risks.
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
From New Orleans to Shreveport, our team has proudly helped clients across Louisiana and Mississippi navigate the complexities of post-divorce insurance planning. Every situation is different, and the right coverage makes all the difference in your next chapter.
