This type of event insurance can protect you against unforeseen delays and cancellations
Rolling Stones lead guitarist Keith Richards has his hands insured. Soccer sensation Cristiano Ronaldo’s legs are insured by the team he plays for. Actor Daniel Craig had his whole body insured while he was filming Quantum of Solace.
Insurance is protection against the unexpected. It’s even more important when the insurance protects a valuable asset like, say, Cristiano Ronaldo’s legs. Or your upcoming wedding.
According to Investopedia, the average cost of a wedding in the United States is between $21,000 and $24,000. That’s a substantial financial risk if something were to prevent the wedding from happening, which is why many insurance companies now offer wedding insurance. Here’s what you need to know:
Wedding insurance is a specific type of event insurance and nearly all major insurance companies offer this type of protection. For example, insurance company Allstate recommends it for functions such as weddings, birthday parties, and religious celebrations.
Event insurance safeguards you against lost deposits and other related fees if the function is canceled. It may also offer liability coverage to protect you in case of injury or property damage that happens if the event does take place.
No matter what the specific type of event, it’s important to understand what the insurance actually covers. Many wedding planners, for example, will advise you to take out an event insurance policy that offers specific liability coverage to protect your guests and to complement insurance protection your wedding vendors (caterers, etc.) carry.
This protection is not the same as the cancellation coverage. If the bride or groom gets cold feet and backs out, event insurance coverage may not cover the obligation to pay for things like the already-prepared wedding cake.
How wedding insurance works
The most common type of wedding insurance is event cancellation coverage. Prospective couples purchase the policy to protect themselves against financial losses if the wedding is canceled for reasons outside of their control. Those five words are extremely important. Calling off a wedding at the last minute is a reason within your control.
Cancellation or postponement coverage generally covers financial obligations such as deposits already paid, hotel and travel accommodations, property rental, catering services, and even special jewelry or clothes specifically related to the wedding itself.
Most wedding cancellation or postponement policies cover three main areas:
- The key people in the wedding, such as the couple to be married and their immediate family members. The wedding insurance would protect against covered losses incurred if any of these key people are involuntarily unable to participate, causing cancellation or postponement.
- If the venue is rendered unusable because of a fire or accident, the policy would protect against covered losses.
- The policy would also protect against covered losses if a caterer or other event vendor does something which forces you to cancel or postpone the wedding.
Again, as a general rule, most wedding insurance policies covering cancellation or postponement protect against things that are outside of your control. One tricky element here is the weather, however. Pay close attention to the details of this clause if you decide to purchase wedding insurance. Canceling the wedding because of rain on the day of an outdoor ceremony may not be covered.
How to shop for wedding insurance
Wedding insurance coverage is similar to other types of protection. You usually make a coverage selection based on the value the insurance company is being asked to underwrite. Financial advice website ValuePenguin reports that reputable insurance companies offer a range of coverage levels that feature category-specific limits tied to each option. The cost of your policy is determined by the level of financial protection you select, as well as any additional expense coverage.
Like most insurance coverage, event protection gives you peace of mind about the financial obligations you would incur in the event that the wedding was unable to take place. It might not make sense if, for example, you’re having a small and intimate event with few expenses. And check to see if the site of your wedding already has liability insurance.
Homeowners insurance may be sufficient for liability coverage if the event takes place at a private residence. Did you use a credit card to pay for the wedding cake? Your credit card may offer its own protection if the cake fails to arrive on the date of the joyous occasion.
Getting married changes everything
Your marital status will change many things, including your insurance rates and needs. You might have two cars to cover now, but you likely will qualify for a multi-car discount. Combining households might also mean you’ll need to change the levels of coverage on a homeowner’s policy. And bundling various types of policies together can save significantly.
You’ll consult a florist to make the right choice for a wedding bouquet. Do the smart thing and consult an insurance professional to ensure that you’ve got correct and adequate protection in place for the wedding and beyond. Contact us.