It’s now officially wedding season (May thru October). Your Dry Log editors searched the internet for easy to understand insurance recommendations for engaged couples.
There are two categories. The first is wedding insurance for “The Event.” The second is insurance for the newlyweds themselves, “The Couple.” The Dry Log has advice on both, the latter from the Ohio Department of Insurance, written by its’ Director at the time, Jillian Froment. We also found data regarding “ The Event” we hope you’ll find helpful.
THE EVENT
From a sick bride or groom to a wedding weather disaster, unwanted catastrophes can come in all shapes and sizes for your special day.
Weddings are big business. The Wedding Report says there are 2.1 million weddings in the U.S. each year, with a total value of more than $54 billion. The average cost of a wedding is $25,000 and that number is even higher in urban areas. If it’s a destination wedding on a remote island or in an exotic locale, it can be a very expensive proposition.
Fortunately, there is insurance available to help manage the risk and reduce the sting of a less than perfect day. Of course it won’t cover the argument that Aunt Edna had with Uncle Charles, but it could cover the presents that were damaged when they knocked the gift table into the wedding cake.
Wedding insurance runs anywhere from about $95 to more than $500 depending on the amount of coverage needed. Travelers Insurance recommends purchasing enough insurance to cover what you would lose in a worse-case scenario if the wedding needs to be cancelled or rescheduled for some reason. Some plans have deductibles, others do not, so check with your insurer regarding any additional charges. Insurance usually covers non-refundable deposits and some purchases if circumstances beyond your control require you to cancel or reschedule the wedding. However, if the bride or groom gets cold feet, that won’t be covered.
Still not sure if you need insurance? Then here’s a look at some of the possible wedding day mishaps that can be covered with an insurance policy.
Wedding venue-When the Manor Tavern, a historical restaurant in Maryland that dates back to the 1700s, caught fire in 2002, it displaced several weddings and other events that were scheduled there the following weekend. Fortunately the caterers were able to find another facility nearby and the weddings still took place, but it could have been a very different story for the two extremely disappointed brides.
Wedding insurance would have covered the cost of cancelling the weddings because of the fire. It also covers venues that may be inaccessible because of weather (like flooding after a hurricane), settings that have closed and not reopened due to construction, a banquet hall that has lost its license, or those that have gone out of business. Insurance covers rescheduling the wedding and the cost of items such as flowers, tent rentals and the reception.
Some venues require that the couple provide proof of liability insurance. The Travelers special event policy has a liability endorsement that allows the rehearsal dinner, ceremony and reception to be named as additional insureds.
Weather-Every bride dreams of the perfect wedding day and it usually doesn’t include a major snowstorm (think of this past January and February in Boston) or a devastating storm like Hurricane Sandy.
Wedding insurance will cover the cost of cancelling a wedding if conditions prevent the bride or groom, key family members or the majority of guests from getting to the wedding site. This can be important if the wedding is held in a remote location like an island accessible only by boat or a destination wedding like a cruise that is impacted by severe weather.
Vendor issues-According to Travelers, 44% of wedding insurance claims involve vendors who were hired for the event but didn’t perform as promised. This can include a caterer or officiant who fails to show up, requiring the wedding to be cancelled; a limousine driver who is a no-show; a photographer’s camera bag that is stolen during the wedding; and a dress shop or florist who files for bankruptcy right before the wedding.
Insurance could cover everything from lost deposits to possibly reshooting photos after a wedding.
Property Damage-Once the champagne starts flowing and the guests start to really party, there could be some property damage. A reception held at a historic venue may have artwork or furnishings that could be damaged when Uncle Howard dances into a priceless sculpture or an inebriated guest falls into the champagne table, damaging it and the Oriental rug underneath. Travelers says 28% of its claims involve wedding-related property damage to a location.
Illness-According to WedSafe, a bride’s father suffered a bicycle accident and broke his pelvis, which caused the wedding to be postponed. Event cancellation coverage provided over $13,500 for the rescheduled wedding. For Travelers, approximately 8% of wedding claims involve illness or injury to the bride, groom or a key member of the bridal party, requiring the wedding to be cancelled or rescheduled
Bridal attire-WedSafe describes a wedding where a guest accidentally spilled red wine on the bride’s wedding dress. Since the stain couldn’t be removed, the skirt had to be replaced before the dress could be cleaned and preserved. The claim was valued at $3,275. Travelers says 6% of its claims involve problems with bridal attire. Insurance will also cover a wedding gown that is lost, damaged or stolen.
Most weddings have been planned down to the tiniest detail since the bride was a child. They are usually one of the largest parties a couple (or their parents) will ever host. Receptions take just over 50% of the wedding budget, video and photography 14% and the venue 11%. When the anticipated perfect day doesn’t go quite as planned, wedding insurance can help prevent it from being a complete financial disaster.
Excerpts were taken from an article by Patricia Harman and from Jillian Froment.
THE COUPLE
It’s essential for engaged couples – and married ones – to remember that when the wedding planning begins to also include planning your financial future together.
Often a bumpy ride. According to the National Association of Insurance Commissioners (NAIC), while 71% of newly married couples acknowledged the importance of sharing beneficiary designations, nearly half never got around to addressing their life insurance needs prior to saying “I do.” Often, other complicated topics like auto, home, health, and life insurance are ignored as well..
To help jump-start the process, here are several questions you should ask each other:
Which health plan should we keep? The lowest premium isn’t the only consideration when deciding among the options. Review deductibles, co-pays, and coinsurance provisions, and consider what is not covered by the plan.
How’s your driving history? Driving infractions can impact your auto insurance premium, while being married may qualify you for a discount.
Can we afford to renovate our home? A renovation investment can change a home’s replacement value and insurance needs.
How much life insurance is enough? Factor future income potential, the cost of raising children, and any outstanding mortgage payments.
After decisions have been made, be sure to continue to review your insurance needs, especially when life changes arise. Talk to your insurance agent or financial adviser and begin the planning process before you Tie the Knot.
