Wedding Insurance: Do you Need it?
I’ve started hearing about wedding insurance more and more lately and have had a few readers ask me questions about it.
I honestly did not know it existed until recently. So I decided to do a little digging to find out more.
It’s not surprising that wedding insurance is gaining in popularity. The average wedding cost in 2012 was nearly $27,000. That’s a lot of cash. And a big financial risk if something goes wrong.
What is Wedding Insurance and what does it Cover?
Wedding insurance covers you on losses in the event that you lose your non-recoverable deposits and purchases if covered circumstances beyond your control cause you to cancel or postpone your event or spend additional money.
What kind of things could be out of your control?
Well, let’s say a tornado or fire takes destroys the location you were going to have your wedding – that was pretty much out of your control, and it would likely lead to you having to cancel your event.
Another example might be your wedding dress not being delivered in time for the wedding, causing you to postpone the event.
Or maybe you get violently ill right before the wedding or have a heart attack – weddings are stressful occasions, right?
Outside of cancellation or postponement losses, wedding insurance could cover:
- damaged or lost apparel or rings
- lost or stolen gifts
- wedding photo damage or lack of clarity
- having to pay extra for a last minute change in caterer or other service provider
The key to having the insurance cover your losses is that these circumstances must be out of your control.
Do your research, as what is covered under each wedding insurance policy will vary.
You can also add liability coverage, which can protect you if someone gets seriously injured or otherwise at your event and decides they want to take legal action against you. Liability coverage usually adds to the cost of your premium.
What Does Wedding Insurance Not Cover?
Don’t expect wedding insurance to cover all unexpected costs associated with your wedding.
Wedding insurance does not cover “change of heart” (cold feet) cancellations. Some wedding insurers may offer an additional “change of heart clause”, but it will likely cost you dearly.
A recent study in New York showed that 6.5% of couples who applied for marriage licenses ended up getting cold feet. There is a good reason why most wedding insurers don’t cover this – it’s all too common and it would probably make it prohibitively expensive for most couples. So be nice to your spouse-to-be, or you are SOL.
It also does not cover loss that results from existing medical conditions. If your father-in-law has a history of seizures and has one right before your wedding, you would be out of luck on recovering costs associated with postponing.
Also, if you decided to dive into a mud pit in your tuxedo and don’t get your deposit back when you return it… probably not covered.
How Much Does Wedding Insurance Cost?
It really varies. There are plans out there for $100 or less that have deductibles and no additional clauses or liability. If you want liability or no deductibles it could cost you from a few hundred for $10,000 of coverage to an upwards of $1,000 if you have $100,000 of coverage or more.
How is Wedding Insurance Different from Event Insurance?
Wedding insurance is really just one of many variations of event insurance.
If you decide that wedding insurance makes sense for you, search around for “event insurance” in addition to “wedding insurance”. Most event insurance providers have policies that cover weddings, and broadening your search will give you more options for finding the lowest cost.
Do you Need Wedding Insurance?
I can’t answer this question for you, but I’ll give you a few things to chew on.
If you have a $100,000 wedding, it might be a necessary evil to get wedding insurance. The alternative of course, is to not have a $100,000 wedding, or even an “average” $24,000 wedding.
I previously highlighted how I had an awesome, but cheap wedding for only $2,500. I didn’t have any thought about wedding insurance. I didn’t even know what it was or if it even existed at that time. Our wedding was so cheap it would not have mattered. If I could do it, there is no reason you can’t as well.
I also question the likelihood of a complete wedding cancellation due to a lost dress, tuxedo, or ring. If you have dozens or hundreds of guests make the trip to your wedding, are you going to completely cancel everything at the last minute because your ring didn’t make it in on time? If you did, I certainly wouldn’t come back.
Also, if you did decide to postpone due to an unforeseen circumstance, you would typically only lose deposits. I would think that many vendors would not charge you a deposit if you were to reschedule with them. If you’re a skilled negotiator, your odds there are pretty good. And you can always negotiate a lower deposit beforehand.
Keep in mind that your home or auto insurance policies may cover some of the items you are worried about losing. Most home insurance policies will allow you to add specific items to the policy for a very low cost.
Wedding Insurance Discussion:
- Have you bought wedding insurance? Did you end up using it?
- Would you buy wedding insurance? Why or why not?