Saying ‘I Do’ to Wedding Insurance
A trip to the altar is one of the most important--and expensive--journeys in a person’s life, often requiring loads of planning and financial resources to get there.
But what happens if the reception hall suddenly shuts down, the bridal shop holding the wedding party’s gowns goes belly up or the groom has an attack of acute appendicitis just before the ceremony?
More than likely, the big event will have to be postponed, possibly at great loss to whoever is paying for it--unless special insurance coverage was taken out ahead of time.
With the average cost of a wedding now at $20,000, more people are obtaining insurance to protect themselves from unforeseen disasters, industry experts say. Coverage also is being bought more frequently for expensive events such as bar mitzvahs, anniversary parties and family reunions.
In some cases, the facilities and reception halls themselves are requiring party givers to purchase extra liability coverage.
“More people in this economic age have the resources to celebrate in style. As a result, they also see the downside if they need to cancel or postpone,” said John Kozero, spokesman for Fireman’s Fund Insurance Co. in Novato, Calif., the only carrier to offer private event coverage for individuals.
The policy is offered exclusively through R.V. Nuccio & Associates Insurance Brokers Inc. in Fawnskin, Calif., though other brokers around the country are permitted to sell it. It appears under three registered trademarks: Weddingsurance, Barmitzvahsurance and Celebrationsurance.
Is it for everyone? While insurance brokers think many people can benefit, Robert Hunter, director of insurance for the Consumer Federation of America in Washington, said it’s probably an unnecessary expense for many. Risks are usually low and controllable, he said. Besides, there often are other options. You could sue the photographer who failed to show up or the dress shop owner who shut down.
Still, Kozero said, special-occasion insurance, common in Britain and available in the United States since 1993, has been gaining in popularity since it was revamped more than a year ago to include events besides weddings. The volume of such policies has doubled in the last year, he said.
Included in Fireman’s basic policy--which carries a one-time premium starting at $195 for $3,000 worth of coverage and a $250 deductible--is coverage for cancellation and postponement of the event itself. Coverage of nonrefundable expenses can begin up to two years before the special event.
Examples of what cancelable circumstances may be covered:
The bride, groom or someone essential to a special event gets sick; the reception hall is closed down; bad weather prevents most guests from attending the event; the clergy fails to show up.
There’s also separate coverage for other problems. For instance, the photographer loses all the negatives and the photos have to be retaken; someone runs off with all the gifts; the bridal shop owner goes out of business and the gown has to be replaced; a drunk guest damages the hall or hurts someone in a fistfight.
What happens if the bride runs off with the best man the day before the wedding?
“One of the things that isn’t covered is cold feet,” said Robert Nuccio, owner of R.V. Nuccio. “We have no control over change of heart.”
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Money Savvy Quiz
Which of the following can be used to avoid probate after I die?
a. A will
b. A living will
c. A living trust
d. A pay-on-death account
e. Joint tenancy
f. All of the above
g. None of the above; probate is mandatory
h. c, d and e
Answer: h. Revocable living trusts, accounts designated as payable on death and joint tenancy are all ways to avoid probate, the court process used to settle an estate.
