Do You Need Wedding Insurance
Your wedding day is a time of great joy and celebration, and as were sure you aware, its also a big investment. What if a vendor doesnt show? A guest trips and falls and hurts themself? A parent gets too sick to attend? Inclement weather requires you to postpone? Literally anything can happen, so when the unexpected occurs, wedding insurance can help provide some peace of mind. Whether or not you need wedding insurance depends on several factors. Some good reasons to invest in a wedding insurance policy include:
- You are planning to serve alcohol at your wedding
- You live in an area known for extreme weather that could impact your event.
- You are planning a destination wedding where travel is involved.
- When travel could impact your ability to attend the event should a crisis arise.
Oftentimes, a Liability Insurance Policy is required by your wedding venue in case of damage to the venue property or its contents. In most cases, your venue will tell you how much coverage to buy to meet their requirements.
How Your Claim Will Be Paid
It depends on what you have claimed for, but most insurers will settle your claim by:
-
Paying out the cost of the claim to you, for example, if you have paid for a venue that goes out of business
-
Covering the cost of the claim directly, for example paying the venue for damage caused by you or your guests
Make sure to ask how the claim will be settled when you call your insurer.
What’s Not Covered By Wedding Insurance
Remember that as with other insurance, most policies will have an excess so it’s worth bearing this in mind when considering why you are opting for wedding insurance – will the insurance be worth it for things you are worried about? Watch out for the fact that typically these items arent covered:
- You can’t make a claim for a situation that you already knew about.
- You can’t make a claim if either you or your partner gets cold feet.
- You can’t make a claim if you decide you cannot afford to go ahead with your plans.
- Most insurers have strict rules on theft, so double-check what’s included. For example, some won’t cover the theft of a wedding dress from a vehicle unless it was in a locked boot.
- Honeymoons are not covered as standard, although some providers will bundle yours in .
- Your engagement ring – be sure to get it appraised, and cover it under your household insurance policy or separate jewellery insurance.
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Is There Anything Wedding Insurance Wont Cover
Wedding insurance protects against unforeseen and unavoidable events. It doesnt cover a change of heart or cold feet. If you and your partner decide to cancel the big day because youve changed your minds, you cant rely on insurance to protect you financially. You wont be covered due to a minor incident either. For example, a little bit of rain. The weather will really have to turn severe for anything to happen.
Insurance That Covers Weddings
Having insurance for potential wedding disasters makes sense for many couples, especially if the celebration will be large and expensive. Depending on where your wedding will be, you could get coverage through:
For example:
- If a relative or friend is hosting the event at their house, their homeowners insurance and umbrella insurance for very large claims covers liability. However, they should ask their insurance agent about liquor liability and whether they have coverage if a drunken guest causes a car accident after leaving.
- Your own homeowners or renters insurance may cover stolen or destroyed gifts.
- Your venue may have liability insurance of its own, so you wouldnt need overlapping coverage. For example, a banquet hall likely has its own policy, but ask about what it does and does not cover.
» MORE: Understanding homeowners insurance
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Coronavirus Wedding Insurance Update
The spread of coronavirus has resulted in considerable disruption to wedding plans. It has also caused some insurance providers to make changes to their policies and, in some cases, stop selling new policies altogether.
You can find the latest updates and advice in our dedicated Which? coronavirus information hub.
Average Wedding Costs By Type Of Wedding
Where you live isn’t the only factor that affects how much you’re likely to spend when you celebrate the start of your life with your beloved. The type of wedding also makes a difference:
- Destination weddings average $32,000, while hometown weddings average $27,000.
- First marriages weddings average $30,000, while second weddings average $14,000.
- Millennials typically spend $30,000, while members of Gen Xers spend $20,000.
Hometown weddings come at a lower average cost than destination weddings for obvious reasons — it’s cheaper to stay local than to incur the costs of travel.
However, some of the extra wedding costs of a destination ceremony may be offset by a lower price tag for the honeymoon, assuming the couple celebrates in the location where the wedding was held.
It’s surprising, though, that millennials — who have faced unprecedented financial struggles — tend to spend more on their nuptials than their older counterparts. This discrepancy could be explained by the fact that social media has played an increasingly important role in driving the price of weddings up. More than half of all couples set up their own wedding hashtag in 2019.
Sexual orientation made almost no difference at all in average wedding costs. Opposite-sex couples spent an average of $28,000 while same-sex couples spent just $500 more.
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Overview Of Wedding Insurance
So what is wedding insurance? Basically, wedding insurance protects a couple’s investment from circumstances beyond their control, and reimburses expenses incurred. For example, what if your limo driver doesn’t show up and you have to book another one the morning of the weddingfor three times the price? Or what if the groom’s custom-made tuxedo is lost in airport baggage, and he has to buy a new one the day before the wedding? What if your reception space goes out of business a month before the wedding, and you lose your deposit and have to book another space? These are the types of wedding day financial losses that wedding insurance can help to protect.
How Does Wedding Insurance Work
Wedding insurance falls under special event coverage and usually comes in one-day, two-day and weekend length policies. There are two general types of policies:
- Liability
- Cancellation
Todd Shasha, managing director of personal insurance product management at Travelers, said wedding insurance is the perfect way to protect a significant investment.
No matter the size, location and scale of your nuptials, a wedding is a significant investment as couples and their families plan full weekends complete with a rehearsal dinner, the wedding event itself and perhaps a celebratory send-off brunch. A wedding insurance policy helps to protect that investment from common and costly mishaps that can occur before, during and after the celebration, he said.
Wedding insurance varies by coverage levels and deductibles. You can also add riders to the policy, such as liquor liability protection.
One item that isnt covered by any wedding insurance is the planner.
I am an LLC and carry my own insurance, but that doesnt protect against cancellations, she said.
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Can I Get A Loan For A Wedding
Of course another option is to borrow money to help with the costs. Obviously it’s not a great idea to plan a wedding with a totally unrealistic budget however, a small loan could help you make some of those final payments.
In our experience, couples who take out a wedding loan with Admiral to help pay for their big day, borrow on average £6,800. Interest rates are subject to your individual circumstance and will be explained clearly when you choose to apply for a quote.
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Are you in the US? Wedding insurance in the US can be arranged quickly through our online program. Only available in California, New York and Texas at this time. Check back soon for more availability.
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How Much Wedding Insurance Do You Need
Not everyone needs coverage to handle the risks of a canceled wedding. A wedding venue that handles all the details of your big day may refund any lost expenses if they cause the cancellation or postponement. They may also have insurance coverage of their own. If you feel you can absorb additional costs as they arise, then you might not need additional coverage.
But if you’re set on getting wedding cancellation coverage for peace of mind, then you should look at limits that handle most of the major costs in your wedding. This should include the cost of the:
- Venue
Do I Really Need Wedding Insurance
Wedding insurance is special event insurance that provides coverage for wedding mishaps such as venues closing, vendor no-shows, extreme weather, damaged gifts, sickness or injury and more. Optional liability and liquor liability coverage are also available to protect your interests from unfortunate incidents such as damage to property at the event. Make sure your wedding insurance has your big day protected for those just in case moments. Explore wedding insurance coverage from Travelers.
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Examples Of Wedding Gift Theft Incidents
Its easier to understand that wedding gift theft is a very real threat by highlighting some specific examples of such unfortunate incidents occurring. Below are some:
In April 2019, a couple in St. Peters, Missouri had a gift card box with about $2,800 cash in it stolen from their wedding. Like many couples, they had included a gift table with a box on it for people to place cards and money inside.
In September 2018, a serial wedding-gift thief from Eugene, Oregon pleaded guilty to felony charges of aggravated first-degree theft. Brian Keith Starr stole $18,737 worth of items from five Oregon-area weddings that year.
In January 2018, a thief was caught on camera stealing and running away with a gift box from a Rosemead, California-area wedding. The gift box was estimated to contain about $20,000.
In October 2016, a young couple in Buffalo, New York had about 30 cards containing cash and gifts stolen from their wedding reception. The couple had included a gift table with a box on it for attendees to place cards in.
None of the above examples indicate that the married couple had a wedding liability insurance policy in place, but it certainly would have been advisable to have one, in all cases.
Who Pays The Costs Of The Average Wedding
With such a high price tag, it can be hard for many couples to cover the costs of the typical wedding. Many get help from their parents while others use savings or even charge wedding-related purchases on their credit cards.
The charts below show how costs are split among the couple, their parents, and other generous contributors, along with how couples come up with the funds to pay for their special event.
Percent of wedding paid for:
| Payer |
|---|
Here’s where couples draw money from to pay for their part of the wedding:
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Your Big Day Will Almost Assuredly Come With A Substantial Wedding Budget
No matter how you add it up, the cost of a wedding is likely to be several thousand dollars at a minimum, even for a small affair.
Couples would be well-advised to consider their budgets carefully and make sound decisions during the entirety of the wedding planning process, including setting limits up front — and sticking to them.
Those who are involved in the wedding planning process should likely also aim to pay for as much of the wedding in cash as possible, rather than relying on credit cards that can carry high interest rates. Charging wedding costs can sometimes add hundreds or even thousands of dollars to the final price tag depending on how long the couple pays finance charges.
Examples Of Wedding Crashing Incidents
Its important to understand that wedding crashing isnt always fun & innocent, like in the famous 2005 comedy it often leads to major thefts occurring. For this reason, wedding crashers should be identified and ejected from weddings as expeditiously as possible. Below are some real-life examples of why you should have a zero-tolerance policy for wedding crashers:
In February 2019, KTLA reported that a well-dressed wedding crasher stole a card box filled with cash gifts worth an estimated $10,000 from a Monrovia, California-area wedding.
In October 2018, Erie News Now reported that a woman walked into a wedding reception in Erie, PA, and stole the couples wedding card gift box. Before the theft, the woman spoke to several people inside the reception and made herself appear as though she belonged there.
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Common Wedding Insurance Claims
A lot can happen after you put down wedding deposits. Vendor issues are the most common type of claims and are among the costliest, Shasha says.
The most common wedding insurance claims that Travelers pays are for:
- Vendor issues: 30%.
- Illness or injury: 29%.
- Weather issues: 16%.
Among the vendor-related claims Travelers pays, nearly two-thirds involve wedding or reception venue problems, Shasha says. Typically, this involves facilities that closed unexpectedly or can no longer accommodate the wedding, causing it to be rescheduled.
Other common claims typically involve vendors that go out of business or just fail to show up on the big day. Examples include:
- A photographer fails to deliver your photos.
- A florist goes bankrupt and doesnt refund the deposit.
- Your seamstress loses the gown.
- The limo company you hired goes out of business.
- A caterer never shows up.
What Does Wedding Cancellation Insurance Cover
Wedding cancellation insurance will cover postponement, like if you had to push the date of the event back. This insurance also covers the cancellation of the wedding entirely, including rental and event space fees for cancellation, deposits that you made to vendors, hotel accommodations, and other costs that might otherwise be considered nonrefundable.
Here are some examples of how you might use wedding cancellation insurance:
Example 1: Your beautiful outdoor wedding is derailed by a major hurricane, preventing you and your guests from safely traveling to the venue.
Example 2: The bride or groom gets cold feet and decides not to go forward with the wedding. You will want to check your policy for this, but in most cases you can add what’s called a “change of heart” rider to your wedding insurance just in case this happens.
Example 3: The event venue suffers from a catastrophic event, such as a fire or earthquake that makes the event space uninhabitable.
Bonus: Professional Counseling Coverage
If you purchase your wedding cancellation insurance through Nationwide Insurance, you’ll have access to professional counseling coverage, which includes therapy for emotional stress caused by a cancelled or postponed wedding for up to 1 year after the original event date.
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