Should I Buy Wedding Insurance?

What can go wrong on a wedding day or silver anniversary celebration? Everything and anything! Wedding insurance - also known under the more occasion-neutral term of private event insurance - offers some fiscal protection. What do you need to know?

What is Wedding Insurance or Event Insurance?

Does it seem odd to buy private event insurance? Not if you consider how much the average wedding, 50th wedding anniversary shindig or 80th birthday party will cost. The Insurance Information Institute (III) highlights that special events insurance offers some financial protection if a private event cannot be held as planned. Death or illnesses of a participant, a suddenly bankrupt caterer or a hurricane-damaged social hall are examples of occasions when this type of policy comes in handy.

Compare Wedding Insurance Policies.

The National Alliance of Special Event Planners highlights that event insurance coverage options offered by one provider may differ significantly from the coverage details another policy maker sells. Most companies will cover a cancellation or postponement of the event if the primary participants fall ill or are otherwise unable to keep the date. Such a special events policy will pay for nonrefundable expenses that come with a cancellation of halls and venues.

It gets a bit dicier if the buyer of private event insurance wants to protect herself against claims of personal liability, liquor liability or ruined presents. Some companies specializing in wedding insurance may also offer a "change of heart" option, which protects a third-party expense payer against the financial ramifications that come with the cold feet of a bride or groom. Yet even here it pays to shop around. Insurers impose strict time lines for this type of protection!

Should You Buy Event Insurance?

If you are spending tens of thousands of dollars on a wedding, insurance policies in the amount of $550 to $1,000 are a drop in the bucket and make sense. On the other hand, there are times when you can piggyback on already existing insurance policies. For example, some special events venues will offer certain types of insurance policies to cover consumer liabilities.

Credit cards frequently feature already existing reimbursement policies, if a purchased high-ticket item breaks or is stolen. Credit card companies may also reimburse you for gowns ordered and prepaid, if the vendor goes out of business and does not deliver the goods. Homeowner's insurance covers premise liability, which is useful if a guest slips and falls on the lawn. Of course, if you are uncertain about whether you have these types or coverage or what their limitations may be, it is a good idea to give wedding insurance a second look.

Sources

Insurance Information Institute: "Wedding and Special Event Insurance"

National Alliance of Special Event Planners: "Wedding Insurance and Private Event Insurance"