There's an insurance policy for every romance
Spring in the air. With it comes the inevitable whiffs of love, and with love comes… insurance?
When the couple says “I do,” a ring traditionally changes hands. And if the couple is following tradition, that ring likely cost multiple of months of salary.
Making sure it is protected by insurance is essential.
The first place for insureds to look for coverage is a homeowner’s or renter’s policy. Because those policies cover damage or theft of personal property, the ring is going to get some coverage there.
There are, however, a few considerations.
First, these policies have coverage limits. Couples can’t just assume that a $10,000 ring would be covered by a homeowner’s policy, because many of them top out at between $1,000 or $2,000 per piece of jewelry.
It is also essential to know that the coverage only kicks in after a deductible. So, if someone stole a couple’s $5,000 ring and their policy had a $1,000 deductible, it could be possible that they would get nothing for that ring, even though it is covered.
As an insurance professional, it is key to point out that they would be better protected with a rider or floater that would allow for that higher value.
In many cases, for instance, if insureds live in an area where high deductibles are common to bring down insurance costs, forgoing the homeowner’s policy altogether may make the most sense, and instead they would do better with a stand-alone jewelry policy. Several specialty lines offer this coverage, which can be tailored to their risk tolerance and the value of the piece.
Going to the chapel…
The actual wedding day is a huge expense. If the event isn’t properly insured, it can represent a huge area of liability for the couple.
Wedding insurance is a specialized line of events coverage. These policies are designed to protect both against liability from the event, and in many cases, from unexpected cancelations.
The liability policy is designed to cover the couple in case someone at the event damages the venue — say, a DJ overloads an electrical circuit and causes a fire.
The policy also protects the couple if one of the guests or the staff gets sick or injured — say, the shrimp cocktail was a bit bad, or a waiter trips over a running toddler.
The cancelation policy is akin to trip cancelation insurance, which kicks in if the event is canceled for a reason beyond the couple’s control — say, a blizzard shuts down the city, or a hurricane makes the roads impassable and planes unable to land.
In this case, the policy would reimburse any non-refundable deposits, and may cover expenses involved in rescheduling the event.
Some even pay if a key vendor — a florist, for instance — has to back out at the last minute and a new one needs to be found.
It is essential the couple asks about how a COVID outbreak would be handled, because most policies at this point include specific exclusions for all pandemics.
Some wedding policies cover loss or damage to the wedding presents. There are even policies that cover the honeymoon.
If a bride or groom gets cold feet, that typically isn’t covered, unless the couple purchased a “change of heart” policy. Those policies protect innocent parties if someone backs out. The fine print on these policies is long, however, so it is important everyone understands exactly what is and what is not covered. Nobody wants an unpleasant surprise on top of an already heart-wrenching turn of events.
Such sweet sorrow
Insurance can even step in during the most unromantic stage of a relationship — a divorce.
While there are no mainstream policies that protect from the possibility of divorce, there is a class of policies known as “marital settlement agreement insurance.”
These are meant to protect from the repercussions from a divorce. Those might be spousal support, legal fees, or even child support.
These are different than prenuptial agreements that lay out the terms in advance if a couple calls it quits.
Couples who are interested in these policies should shop early, as unromantic as that sounds. Many of them have a waiting period before they kick in — often four years — so if someone waits until the fights start, they may end up without coverage if everything goes south fast.
Relationships are risky
Insurance can step in to protect couples from some relationship risks. That said, the couple shouldn’t just be thinking about these policies.
When it comes to love, other polices are also equally important to check up on, whether that is a life insurance policy, health policies, or even auto insurance policies. Changes in life should prompt an overall insurance checkup.
While people may never say they love an insurance policy, there are policies that can be there when people fall in love.
Michael Giusti, M.B.A.,(michael.giusti@att.net) is an analyst and senior writer at InsuranceQuotes.com.
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