And before you ask, Dirk and Laura, pictured above, didn't need wedding insurance - their wedding went perfectly.So - wedding insurance or not? Here's our opinion. Your most important investment for your big day may actually be a wedding insurance policy that will cover many of your costs if you need to postpone or cancel the ceremony and reception.
I know that doesn't sound too romantic or exciting, but let's focus on what's on the line here. According to TheWeddingReport.com, the average U.S. wedding cost more than $25,000 in 2007. You wouldn't pay that much for a car and not insure it, or if you made a $25,000 down payment on a home.
If you are planning an expensive or elaborate wedding, it makes sense to insure your wedding. Ask your insurance agent what policies are available -- some insurers offer wedding insurance in a Special Events policy. Or you can check out insurers that specialize in wedding insurance like WedSafe (www.wedsafe.com, who we have no business relationship with, by the way).
The premiums are relatively cheap when you compare them to the money you'll spend on the wedding. WedSafe charges around $200 for a policy that will pay up to $7,500 should your wedding be cancelled or postponed for "covered" reasons (more on that later.) For $35,000 in coverage, the cost is about $400. In case you're curious, it costs about $1,000 to cover a $150,000 gala.
Cold Feet Aren't Covered
The core of a wedding insurance policy is the cancellation/postponement coverage -- the reimbursement you'll receive for all deposits and charges you've paid to your wedding vendors, assuming the insurer approves your reason for cancellation or postponement. That last clause is very important: As with every type of insurance, you need to take the time to understand exactly what is and isn't covered in your policy. You should review the policy in detail with your agent to avoid any ugly surprises down the line.
Among the important caveats to many wedding insurance policies:
Weather: If you're planning an outdoor wedding and encounter drizzle or depressing gray skies, you're out of luck if you want to postpone the nuptials for a better photo day.
But should some extreme weather make it impossible for anyone in your wedding party or the majority of your guests to attend, then your policy will kick in if you need to cancel or postpone. Keep in mind "extreme" means snowstorms, hurricanes, earthquakes, or other major events that close down airports, highways, etc. If extreme weather damages your wedding site -- say a hurricane destroys the reception hall -- your policy will cover the costs of rearranging your wedding plans.
A family or wedding-party member's injury or illness: If someone in the wedding party or your immediate family (parents, grandparents, siblings, or children) is injured or too ill to attend, your policy will pay the costs of postponing or canceling the event. But read this coverage carefully -- typically an illness or injury caused by a preexisting condition that occurred within the past 12 months will nullify this coverage.
The caterer or reception hall goes out of business: If you're jilted by a wedding vendor you've hired, your policy will kick in. Note that a DJ not showing up isn't grounds for cancellation or postponement. Typically your policy will simply pay you a set sum for the DJ's absence.
Rehearsal dinners, engagement parties, bachelor, and bachelorette parties: Policies typically don't cover any of the ancillary wedding festivities.
Cold feet: Um, no. If the bride or groom decides to walk out before walking down the aisle, the insurance policy won't cover any of the deposits and costs you've already incurred.
Mental distress: If you cancel or postpone your wedding for a legitimate (covered) reason and it sends you into an emotional tailspin, your policy may cover the shrink bills.
To Love, Cherish, and Be Liable
When you throw a big wedding party, you also need to be insured in case anyone is injured at the event. For big-time celebrations, the space you rent for the wedding and reception will often require that you have liability insurance before making a deal with you.
If you're very close to the wedding date, look into the liability coverage offered through the wedding insurance policy. For about $200 or so, you can get the coverage you need.
Rings
A wedding insurance policy often provides coverage if rings are lost or stolen during the period the policy is in force (you can typically purchase a wedding policy from two years to two weeks before the event; your coverage ceases after the event). Even if the policy will reimburse you for the cost of the ring -- the coverage is tied to your level of cancellation/postponement coverage -- you want that ring to be insured after the wedding, too.
Your smartest move is to insure the ring through a floater/rider to your existing homeowner's or renter's insurance policy. Don't assume that your policy's existing jewelry coverage is good enough. Typically this covers you only if the ring is stolen. By adding coverage through a floater/rider, you will be covered for all risks. If you lose the ring or it's lost in a fire, flood, or other calamity, your policy will kick in. You'll even be covered if the stone falls out
and is lost.
The average annual cost for adding a jewelry rider to your policy to cover a $10,000 ring will be under $200. And make sure you have the insurance in place the day you walk out of the store.
So that's what we think. Again, it's just our opinion, so seek expert advice and shop around before you make a decision. It may not be a tough decision, though; wedding insurance is relatively inexpensive, and like most other forms of insurance, even if you purchase a policy you hopefully won't need it.
