According to the website Cost of Wedding, the typical wedding in the U.S. today costs about $26,542. And what happens if, after putting down thousands on a reception venue months in advance, the hall files for bankruptcy? More and more often, engaged couples are opting to take out wedding insurance to guard against such events.
More common than you think
These kinds of events are more common than one might think. Robert Nuccio, CEO of the insurance administration firm, Nuccio & Associates, said:
“The claims are shooting up through the walls — the DJ goes out of business, the photographer goes out of business, the venue takes your money and is actually in bankruptcy. When they take your money, they’re already out of business.”
According to Travelers Insurance, 31 percent of wedding insurance claims last year were over the loss of a vendor or venue. WedSafe, a division of Aon Insurance, claimed an even higher figure of 38 percent.
Number of policies taken out on the rise
The number of policies being taken out is also on the rise, despite the poor economy. WedSafe reports a leap of 60 percent in the last five years.
Premiums generally are based on the budget for the overall wedding. In addition to protection against loss of venue or vendor issues, some policies guard against cancellation of the event itself. More and more, venues are also requiring liability insurance to protect them against guest injuries or property mishaps.
For a typical wedding of around $25,000, policies that cover cancellation and liability protection typically range from $320 to $420, says USA Today.
Some policies cover specific items
Also, specific items can be covered, such as catering, a wedding dress or a band booking. Scott Wenclewicz of Wenclewicz Insurance says his company offers policies covering everything from airport delays to bad weather and sudden illnesses. Also, if a caterer bugs out at the last minute, the company will make sure that guests are fed.
Homeowner’s insurance provides some coverage
Some wedding items may already be covered through an existing homeowner’s or renter’s insurance policy. Wedding gifts and wedding rings are examples of items that may be covered, depending on an individual’s policy.
David Wood, president of the Association of Bridal Consultants, said:
“In this volatile economy, wedding insurance is a wise investment and only costs a fraction of the goods and deposits it covers.”
Deal with people you know
Wood also noted that if a couple is very familiar with its venue and vendors, wedding insurance may not be necessary. And that my be the best advice for a frugal and committed couple: Dealing with people you know and trust may be the best insurance policy of all.