The Wedding Guild Series: Wedding Insurance: What Couples Should Know Before Investing
There has been a lot of talk about wedding insurance lately, especially with the presence of COVID as many 2020 couples have had to make the hard decision to cancel or postpone their event(s). MLE encourages all of our couples to consider obtaining wedding insurance (some event venues even require it). Here are some things you need to know regarding what wedding insurance does and doesn’t cover, and what policies are worth looking into before you make any decisions.
WHY SHOULD COUPLES CONSIDER WEDDING INSURANCE?
On average, most MLE couples spend anywhere from $80K-$250K on their wedding celebrations, and we highly encourage our clients to consider wedding insurance! The majority of MLE clients are planning destination weddings and hosting multiple events. For example, a welcome cocktail party, rehearsal dinner, wedding, and farewell brunch. Wedding insurance can help protect part of the large expenses associated with these events. But even if you’re not planning multiple events and working with a smaller budget, investing in wedding insurance is still a smart move and we encourage all couples to consider it.
WHERE TO START?
Step 1: Consider how early you need to buy your policy. Some insurance providers will allow you to purchase coverage right before the ceremony, while others require coverage to be obtained a certain amount of time in advance of the event.
Step 2: Determine if you’re already covered. Before you jump into buying a policy, first determine if you are already covered through your homeowner’s insurance. If you’re not, you’ll likely be able to add wedding insurance to your existing policy at minimal cost (many of our clients have done this successfully and easily). However, if you prefer not to go this route, there are a variety of companies out there with policies to choose from.
Step 3: Check with your venue. Sometimes venues provide general liability protection already, meaning you may only need to purchase add-ons to complement that existing coverage.
Step 4: Contact your credit card provider. Some credit card providers offer insurance-like benefits. The Fair Credit Billing Act, allows consumers to dispute billing errors, including goods or services that aren’t acceptable or weren't delivered as expected. If you are unsatisfied with the quality of the goods or services received and aren't able to resolve the problem with the vendor directly (which we suggest as a first attempt to resolve), many credit card issuers will investigate and may step in on your behalf charging a purchase back to the vendor. Be sure to check with your provider to make sure this is a service they offer.
Step 5: If, after completing these four steps, you have determined you need additional coverage, move forward with purchasing wedding insurance.
WHAT DOES WEDDING INSURANCE TYPICALLY COST?
Wedding insurance cost varies by state, number of guests, and time of year. It’s also dependent on the policy coverage, coverage limits, and company. Most insurance policies start at less than $100 for the bare minimum, while more extensive plans can go up to a few hundred dollars or more.
Unlike most types of insurance policies, wedding insurance is a one-time premium and many couples first learn about it when looking to rent a venue for their wedding day, since providing proof of liability coverage is generally necessary before booking most venues.
WHAT DOES WEDDING INSURANCE COVER?
There are two main types of wedding insurance: liability and cancellation.
Liability Insurance
Liability insurance covers injuries or property damages that might occur during your wedding festivities. Insurance companies also offer important add-ons to this type of coverage, like host liquor liability (if you’re serving alcohol), to protect you from incidents during your wedding day. Coverage can also be extended to other wedding-related events, like your rehearsal dinner, farewell brunch, or even your honeymoon.Cancellation Insurance
Cancellation insurance protects you from unforeseen circumstances that may lead to a postponement or cancellation of your wedding. This type won’t usually cover a wedding being called off for personal reasons but will help in situations out of your control, like a critical injury, illness, or natural disaster.
DOES WEDDING INSURANCE COVER COVID-19?
The coronavirus pandemic has had far-reaching consequences across the entire event industry, especially weddings. Unfortunately, many couples are finding that the insurance policies they’ve purchased aren't covering cancellations related to COVID-19. Why? A global pandemic isn't a covered reason because this situation basically didn’t exist until a few months ago.
Just as with travel insurance, wedding insurance policies have a list of reasons for which they'll cover cancellations or postponements, such as severe weather, sudden illness or injury to a member of the main wedding party, withdrawal of military leave, job loss, or venue bankruptcy. Because we are living in such unprecedented times, neither fear of widespread illness nor government-issued quarantines are included.
Moving forward, couples trying to purchase new policies are now faced with the fact that many insurance companies aren't approving any new cancellation insurance policies at all. Even if they are, it most likely won't cover coronavirus since, after a certain period, the pandemic is classified as a "known event" (an insurance term for an event that the average person should be aware of due to mass media coverage).
So what can YOU do? Most couples are simply opting to reschedule according to the policies of each vendor (which is what we suggest). What's most important here is that your big day is still special to you while following current local and government guidelines and keeping everyone safe.
WHAT ARE THE BEST POLICIES OUT THERE?
The following is a breakdown of the top six wedding/event insurance companies that have been evaluated by a team of researchers at Consumer Advocate.
Policy Options: Liability and cancellation coverage available. Their policy can cover rehearsals, ceremony, reception, and event set up and breakdown. You can either customize your coverage or choose one of their pre-packaged options.
Customer Service: Filing a claim can be done online and their center is available 24/7.
Cost: Starts at $75.
Policy Options: Liability and cancellation coverage available anywhere in the US, Puerto Rico, Canada, and cruise ships departing from these locations. You can cover presents, clothing, car rentals, and services like photography. Its cancellation options protect you from issues like illness, inclement weather, and in some cases, calling the wedding off because of personal reasons. You can extend your coverage beyond the wedding day and add protection for your rehearsal or honeymoon.
Customer Service: Usually, insurers ask that you purchase liability coverage a week or two in advance, but Wedsafe lets you buy it right before the wedding. Cancellation, on the other hand, must be bought at least 15 days before the event.
Cost: Starts at $150 (15% discount applied when you add cancellation to liability).
Policy Options: Liability and cancellation coverage available. Each is a separate policy, so you can purchase just one or both. The liability policy covers you up to $1 million per occurrence and $2 million total for bodily injury and property damage liability. The coverage lasts from the first event at your wedding, which is typically the rehearsal dinner and runs through event cleanup. The insurance will allow you to include up to four separate venues. The cancellation coverage will pay for your wedding expenses in the event that your wedding is called off due to extreme weather, unanticipated illness, unexpected military deployment, or a wedding venue or vendor going out of business.
Customer Service: You can get a quote and purchase a wedding insurance policy from eWed Insurance online in just a few minutes. EWed Insurance also includes an online claim form where you can describe the issue and upload any receipts or other documents you have to back up your claim. All claims are processed by Houston Casualty Company, which is a Tokio Marine HCC company that maintains A++ financial strength ratings with A.M. Best. This is the highest possible rating available and indicates that the underwriters, and by extension, eWed Insurance, is more than capable of paying out its claims when necessary.
Cost: Starts at $105.Policy Options: Liability and cancellation coverage available with free host liquor liability.
Customer Service: Provides an instant Certificate of Insurance. Coverage can be purchased up to two years prior to the wedding date, and as late as the night before your first event for the same price.
Cost: Starts at $125.
Policy Options: Liability and cancellation coverage available for the wedding ceremony, reception, rehearsal, and rehearsal dinner. Post-wedding brunches are also covered in some states.
Customer Service: Claim services available 24/7 with dedicated customer service support lines with personnel specifically trained in wedding and special event insurance.
Cost: Starts at $160.
Policy Options: Liability coverage available.
Customer Service: Multiple locations covered. All policies offer unlimited additional insureds (certificates of liability insurance) for free. You can create one to show proof of coverage to the ceremony location and another one for the reception! Free host liquor liability included on every policy (unless you choose to remove it) and affordable retail liquor available if you're selling, professionally serving, or distributing alcohol at your event.
Cost: Starts at $40.
MLE strongly encourages couples to educate themselves on their options and obtain a coverage policy to protect themselves from a potentially devastating situation. The best day of your life shouldn’t turn into a large financial loss if the unforeseen happens! The right coverage will offer you peace of mind as you plan and help you to avoid financial regret. We hope all couples will be smart about planning their big day and choose to protect their financial investments while doing so.
