Money

Do You Need Wedding Insurance?

By Farnoosh Torabi

Updated on: August 29, 2011 / 11:01 AM EDT / MoneyWatch

Hurricane Irene derailed a number of East Coast weddings this weekend, and had this bride-to-be wondering: Do couples have any financial protection against natural disasters or extreme weather?

After all, postponing a wedding may result in lost security deposits and cancellation fees -- not to mention the extra you'll pay to rebook your wedding elsewhere on short notice.

This weekend I double-checked our contract with our ceremony/reception site and I saw no reference to cancellations due to a natural disaster. The agreement just says, "If Licensee [that's me] terminates this Agreement for any reason whatsoever or if Licensor terminates this Agreement due to Licensee's default hereunder prior to the Event, then Licensor may retain all deposits and license fees paid on account as liquidated damages and not as a penalty."
Hmm. But if a hurricane sweeps through town, resulting in a power outage and structural damage to the venue, is it still our fault that the wedding needs to gets canceled? I also checked our band agreement and it states very matter-of-factly that we shall only receive a full refund in the event of ... um ... death. There seems to be no language protecting us in any other circumstance.
I emailed our wedding coordinator, who manages the venue where we're getting married next summer in Philadelphia. He told me that he has many clients who purchase wedding insurance, as an extra measure of security. That said, he added that Hurricane Irene did not interfere with the weddings held at the venue this past Saturday and Sunday evening.

That's a relief, but sound financial management means always preparing for the what-ifs, right? Blissful couples that spend a small nest egg to ensure their weddings are perfect should by all means secure their investments. Irene was our wake-up call: My fiance and I will more than likely be buying some insurance.

Insurance Options
Over the weekend I searched for wedding insurance options to understand how to best protect our investment. From experts at TheKnot.com I learned that basic wedding insurance -- which covers the loss of photographs, gowns & tuxes, rings, and deposits -- typically runs between $155 and $550. And you want to buy it sooner, rather than later: If you want protection against a hurricane or other major weather disaster, most insurers will require you to have purchased wedding insurance well in advance (and not when the cable media is talking about it and towns have evacuated).

Note that wedding rings are covered by wedding insurance plans -- but not engagement rings. To protect your engagement ring against loss of or damage, you'll need to get the item specially covered through your home insurance provider. My fiance and I just did this through Allstate.

One other thing to consider: General liability insurance, which covers up to $1 million for accidents at the event (alcohol-related and not), costs around $100 to $200. That's not a bad bet: Considering the average wedding totals close to $30,000 these days, you may not even notice the extra cost -- and you'd be protected if the party gets a little out of hand and there's damage to the venue, or a guest's car -- or if someone gets sick or injured.

In the grand scheme of wedding planning, insurance could be the least expensive item on your to-do list. Seriously, our cupcakes will cost more.

Online Resources
WedSafe.com: Protection plans start at around $130 on WedSafe (a subsidiary of Aon, an insurance brokerage and risk management firm), depending on where you live. For example, for $275 I can buy a wedding insurance plan that protects us in case of cancellation or postponement, lost deposits, and more up to a total of $35,000, based on an online quote. For an additional $108, I can add a $1,000,000 liability insurance plan to protect us in case of property damage to the venue and/or alcohol-related accidents. Total: $383 -- less than half the price of our save-the-dates.

ProtectMyWedding.com: Insurance purchased from ProtectMyWedding is provided by Travelers and is priced a little higher than WedSafe.com. A $35,000 Wedding Protector Plan that secures your investment in case of cancellation or postponement, costs about $300, according to my online quote. A $1 million liability insurance plan starts at $165. Total: $465.

WedSure: While the other insurance companies provide all-inclusive insurance packages that cover lost deposits for everything from the venue to the flowers, WedSure lets brides and grooms cherry-pick the specific items they want covered. You can even insure against a "change of heart." My online quote was for a $35,000 policy insuring against a cancellation or postponement, covering non-refundable expenses related to the wedding or honeymoon -- plus a $1 million personal liability plan. Total: $475.75.

Farnoosh Torabi is a personal finance journalist and commentator. She is the author of the book Psych Yourself Rich, Get the Mindset and Discipline You Need to Build Your Financial Life. Follow her at www.farnoosh.tv and on Twitter/farnoosh
More on MoneyWatch

Photo Source: Amiefedora's photostream on Flickr