How wedding insurance helps launch a couple's financial life
Betrothed couples should understand how wedding insurance protects them from the unknown.
The last thing most betrothed couples want to think about is buying wedding liability insurance.
They tend to be more concerned with the details of starting their lives together. They are likely juggling rent or mortgage payments along with wedding expenses, to say nothing of paying down college loans and credit card balances.
Insurance, after all, isn’t very romantic.
But wedding insurance can provide a security blanket so that if an unforeseen accident happens during their much-celebrated event or honeymoon, the couple is protected from financial hardship.
During a recent webinar hosted by the New Hampshire Insurance Department titled “Insurance for Your Wedding: Protecting Your Big Day and Beyond,” LuAnne King, the state’s supervisor of property & casualty compliance, and Jason Dexter, assistant commissioner, discussed how traditional wedding insurance provides protection for policyholders against claims of bodily injury liability, property damage liability, personal injury liability, and the litigation costs to defend against such claims.
Of course, there is no “one-size-fits-all” solution when it comes to wedding insurance. Depending on the location of the wedding, the activities planned, and how many guests are in attendance, needs may be specific to each couple’s event.
The road to forever
Beginning with the purchase of an engagement ring, consumers should insurance this bauble via their homeowner’s policy, a condo policy or a renter’s policy. This will provide protection of the ring for years to come.
As attention turns toward the wedding event itself, insurance professionals need to explain the importance of purchasing venue insurance, including the vital liability component of that insurance. If someone were to get injured during a wedding reception due to a couple’s negligence, or if property gets damaged, venue insurance coverage will provide that much-needed coverage.
See also: A dozen common wedding liabilities and risks
“A lot of venues now will require couples to give them a certificate of insurance,” LuAnne King said. A couple’s specific situation and the type of venue where their reception will be held will dictate the level of venue coverage required. In addition, coverage should be offered in case they need to cancel or postpone the wedding due to weather, illness or other emergencies. Lost deposits and other expenses can be also endorsed onto this this policy and it can prevent financial losses related to key vendors such as photographers, florists, and others not performing their duties.
It is also important the insurance professional thoroughly explain coverages, exclusions, and ensure the couple has adequate limits before the insurance if purchased.
“Couples also should purchase a travel coverage policy for their honeymoon,” King says. One of the biggest advantages to the travel insurance coverage is when a couple is abroad, their medical insurance may not cover them.” Certain travel policies will also build in medical coverage and in the event that they need to be transported back to the United States, there might even be coverage in the policy for that as well.
As Dexter further points out, when a couple is traveling internationally, it is important for them to connect with their insurance agent and/or health insurance carrier because the coverage that is available on their particular health insurance policy is going to vary widely and it is important that all inclusions and exclusions are understood by all parties.
The team at the New Hampshire Insurance Department stressed the importance of insurance professionals and their clients working together to determine the best wedding insurance protection plan for a couple’s specific needs as insurance programs and plans vary widely.
“Travel insurance in particular is not highly regulated, so every policy is not necessarily going to be the same,” Dexter says. While some policies may cover similar things, they may have very different exclusions and different processing conditions on how an consumer gets paid.
“We have a lot of complaints where people think that they’re getting a certain type of coverage then they don’t get what they had hoped to receive,” Dexter says.
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