Community Property

What Does Community Property Mean?

Community property refers to assets jointly owned by a legally married couple. It is not considered the exclusive property of either spouse; instead, ownership is shared equally between them.

Insuranceopedia Explains Community Property

Community property often includes assets such as a home or a vehicle. For most couples, the home accounts for the largest single piece of community property, which is why comparing homeowners insurance companies is usually the first insurance decision they make together. As a result, insurance coverage for community property can be substantial and is often necessary to protect the owners from significant losses. Although the property is jointly owned, the insurance policy covering the community property may be purchased and held by just one person. The same situation applies to life insurance, since in community property states, a surviving spouse can sometimes claim part of the death benefit even when they aren’t the named beneficiary, which falls under life insurance beneficiary rules.