Surveys indicate that the average American wedding costs about $28,000. With couples dropping so much money on an event with many moving parts, it’s becoming increasingly popular to purchase wedding insurance.
This concept wasn’t even on my radar when I was married, and it wouldn’t have been something I considered necessary. But, then again, I spent about 1/3 of that average on my wedding.
Although I’m tempted to scoff at the concept of insuring a one-day event, I do realize there are legitimate reasons this might be a prudent financial decision for some.
What Is Wedding Insurance?
Weddings are now planned up to a year in advance. All of the deposits, reservations, and non-refundable expenditures add up, and if something goes wrong at the last minute, there’s no time to recoup the loss. Wedding insurance is designed to cover unfortunate events such as a venue being double-booked, or the wedding dress getting ruined before the big day.
The concept is similar to insuring valuables: in case of a loss, you won’t have to recover the full price of the item. Until the last few decades, events like weddings were never considered a large enough investment to warrant insurance.
How Much Does It Cost?
Wedding insurance plans range from $100 to $500, depending on the amount and extent of coverage. An insurance plan like this would cover photography, wedding dress, catering, and venue — basically, anything that would significantly impact your day if it were to fall through.
Is Wedding Insurance Worth It?
It really depends on how much you’re spending, and how much money you have set aside for wedding expenses. If your budget is so tight that you can’t afford to save any more money in case of an emergency, but you’re really concerned about the losses you could suffer, wedding insurance might be a good idea.
If you’ve truly spent $28,000 on your wedding, another couple hundred dollars may provide more than its value in peace of mind. If you decide to pay for coverage, make sure you read the contract very carefully to make sure it includes everything you need it to, and be aware of any special rules or procedures you need to follow to qualify for a claim. It’d be regrettable to pay a premium for insurance coverage you’re not able to receive due to your failure to follow the terms.
On the other hand, some couples may not have considered that some of their expenses are already partially insured. Venues are often insured in the case of a natural disaster (and include this coverage as part of your fee), so you don’t want to pay twice for the same thing. It’s best to verify which of your major expenses are already insured to determine if you need additional coverage.
What Should You Do?
In my opinion, it’s better to simply set aside more than you need to spend on your wedding in case of a disaster. In the event you don’t need it, you already have some extra money saved for the honeymoon.
One great way to do this is opening a savings account (perhaps a high-yield online savings account) specifically for your wedding, and make regular deposits in it. If you don’t have as much time to save, set aside any spare cash and tighten your belt as you begin wedding planning.
Feeling financially prepared (and not going into debt) for your wedding is one less stress for you to think about on your big day.
Would you purchase wedding insurance? Do you know anyone who has?