No one wants to think about anything going wrong on one of the biggest days of their lives. But, like all discussions about insurance begin: What if?
Considering the average cost of a wedding in 2022 was $30,000, it may be beneficial and essential to consider signing up for a wedding insurance plan.
But what does wedding insurance include? What doesn't it cover? What are the types of coverages? Does it even make sense?
Let’s find out.
What Is a Wedding Insurance?
Wedding insurance is a specialized policy designed to cover potential losses incurred due to unforeseen incidents that may occur on your special day. These incidents could include rain and extreme weather, personal injury, food poisoning, power outages and vendor issues such as a photographer not showing up.
The average wedding insurance policy costs less than 1% of the budget. Most insurance companies may charge between $100 and $150, but once you add liability that price could increase to $300-$400, at a minimum. This is probably a better estimate since it’s rare for policies to be offered without liability.
It’s also important to remember that the number of guests will also affect your premium. The bigger the wedding, the bigger potential for damage.
Types of Coverage
There are two popular types of wedding insurance:
- Wedding Liability
- Protection from Cancellation/Postponement
As the name suggests, wedding liability covers any lawsuits arising from a guest injury, disruption on the day or damage to the venue. Some policies have a host liquor liability included which would cover damage made by an inebriated guest. Typically, these policies can cover up to $5 million.
Protection from Cancellation/Postponement includes reimbursement for costs associated with rescheduling if the event is unable to go ahead because of extreme weather, death or illness, vendor not showing up or other issues. You can even extend the liability of the policy to the rehearsal dinner and the reception, even if it’s at another location. Some policies may also cover the honeymoon.
Aside from the general coverage, many policies offer riders to cover special equipment, gifts, and even the bride's wedding gown.
What Wedding Insurance Doesn't Cover
It’s easy to assume that wedding insurance would cover the costs incurred for putting on a wedding, but, unfortunately, that's not the case.
The policy doesn't insure losses from a change of mind. You’re unable to claim your costs if the wedding is called off or you decide to elope. The policy also doesn’t cover pre-existing medical conditions of the bride and groom, their families, or guests.
Also, generally, not included in a wedding insurance policy are the wedding rings. Of course, you can insure the rings on a separate policy, or incorporated as part of your home insurance policy, also at an additional cost.
Most insurance companies allow the inclusion of special items, although at an extra cost. Therefore, if you have an expensive wedding dress or a family heirloom that will be part of the wedding, you can pay an additional premium to cover them.
Having a Wedding at Your Home?
When choosing to host your wedding at your home, there is some consideration to how a wedding a policy may affect your homeowner’s insurance. While your home insurance liability coverage will technically cover a wedding, there are a significant amount of exclusions, and it could have a serious impact on your home insurance.
Purchasing a wedding policy would insulate your home loss history from a potential claim. Homeowners insurance is very sensitive to claims; generally, 2 claims within a 5 year period before you get non-renewed, or disqualified for coverage in a standard market.
When Does Getting Wedding Insurance Make Sense?
Obtaining wedding insurance coverage may make sense if you have a large wedding or there are a multitude of vendors involved. When planning for your big day, consider factors like budget and the vendors you'll hire.
Some wedding policies may have exclusions, for example, if you have sparklers in your ceremony or more advanced pyrotechnics. Even fire pits during the reception can qualify as an exclusion.
Some vendors may be excluded from wedding policies, so to protect yourself, make sure to ask any vendor you use for a Certificate of Insurance (COI). Even if you don’t think you need it, ask for it. As we all learned as children from our parents — “better to be safe than sorry.”
If there are multiple suppliers for the same service, inquire about their cancellation policy. Some may offer a refund or allow a transfer of services in case of any last-minute disruptions.
These policies do go through an underwriting process and there can be lots of follow up questions, so it’s always best to get a quote a few months out once you have locked in all your vendors.
Weigh your options before deciding if wedding insurance is necessary. Insurance may give you comfort in knowing you’re protected and that you don't incur losses from any unfortunate incidents that happen on the big day.
Here Comes the Bride…
Wedding insurance is a specialized policy designed to cover potential risks and losses incurred due to unforeseen circumstances on the day. There are two main types of covers; cancellation/postponement and personal liability. Depending on your budget, getting wedding insurance when planning for the big day is essential.
And remember, enjoy the day!