Insurance Concerns for Domestic Partners

Domestic Partners would be wise to understand the insurance concerns associated with their living situation.  Both Gay and Straight domestic partners must realize that common insurance laws and practices were set up for the “Traditional Family Relationship.”  This does not mean that domestic partners are unable to properly insure themselves, just that “off the shelf” insurance programs may not suit their needs.

For Part I we will discuss Auto and Homeowners insurance as it relates to Domestic Partnerships.  In Part II we’ll tackle Health insurance and Life insurance.  Please also be aware that the tips and advice contained in these articles are of a general nature.  It would be prudent to verify the information on a per state, per carrier basis before you assume a particular benefit or discount applies to your situation.  Additional resources can be found at About.com.

Auto Insurance

• If you and your domestic partner share one car you only need one insurance policy.  However make sure that the non-owner (the person who’s name is not on the title of the car) is listed as a secondary driver.  This would be assumed in a traditional married arrangement, however not so in a domestic partnership
• There are three major discounts associated with every Auto policy: Multi-Car, Multi-Policy, Marriage.  All three of these discounts are available to domestic partners in most states.  Insurance carriers will ask for proof of cohabitation.  Proof of cohabitation will include phone/cell bill, utilities, rental receipt, etc.
  • Domestic Partners often have two separate auto policies.  By combining the two policies into one with both names there is a significant Multi-Car discount ranging from 5-15%.
  • Similarly combining Auto policies with a Homeowners policy can yield an additional 5-15% discount for Multi-Policy.
  • Every married couple receives a discount for their marital status.  Far too often domestic partners do not take advantage of this discount.  Most carriers will allow domestic partners to be rated as married if they can prove sustained cohabitation.

Homeowners Insurance

• Similar to a traditional marriage if you and your partner own a home together (both names on Deed and Mortgage) then both names should be on the homeowners policy and each of you receives the full protection the policy provides.
• The difference between a traditional marriage and a domestic partnership comes into play when either you or your partner own the home and the other does not.  In this situation there are two courses of action:
  • You can provide sustained cohabitation and add the non-owning partner as an Additional Insured,
  • Or the non-owning partner can obtain a Renter Insurance policy to cover their personal property and personal liability.

The most important thing to remember when it comes to Auto and Home insurance in a domestic partnership is that you are NOT automatically covered just because you live with the person.  This is true even if you have lived with the person for a period of years.  Disclosure to your insurance carrier of your living arrangement up-front will provide assurance of coverage and piece of mind in the event of catastrophe.

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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