Wedding InsuranceQuick Quiz
Which of the following items are you most likely to need before your wedding and least likely to put on your registry?
- Food Processor
- Formal dinnerware
- Monogrammed towels
- Homeowners/Renters Insurance
If you said, "I do" to homeowners insurance or renters insurance we now pronounce you and your gifts well protected. Insurance may not top the list of pre-wedding priorities, but financial protection for your special day, new jewelry, gifts, and other belongings is a good idea. When planning a financially secure future together there are numerous decisions you need to discuss. This brochure offers you advice on what insurance questions you may want to consider.
Too Many Blenders?
When you combine households, you might end up with two blenders and no microwave. When you combine insurance policies, you might end up with two health plans and no homeowners/renters coverage. You will need to sort out the coverages you have and those you will need. Remember, the household problem is annoying. The insurance problem can become an economic nightmare.
There's No Place Like Home
Homeowners insurance and Renters insurance protects you and your personal property in two very important ways:
- Liability covers you for legal defense costs if you are sued by people who are injured by you or your:
- family members
- Contents covers your personal property against losses from a wide variety of potential perils, such as:
- fire, lightning or smoke
- theft, vandalism or malicious mischief
- windstorm or hail
- riot or civil commotion
- damage from aircraft, vehicles and falling objects
- plumbing-related water damage
- electrical surge
A special benefit of homeowners or renters coverage is that your belongings are protected anywhere in the world: at home, in the wedding hall, or with you on your honeymoon.
What's It Worth To You?
A good renters insurance plan is designed to restore your lifestyle back to normal quickly and with minimal additional cost in case of a loss. The two types of policies designed for this purpose are:
Actual cash value policies that pay the cost to replace your belongings after depreciation.
Replacement cost policies that take into consideration what it would cost to replace your belongings at today's prices.
Whichever type of policy you choose, read it carefully. Most policies have strict limits on certain valuable items like jewelry, art, and antiques. You may need to purchase additional insurance, called a rider or floater, to make sure those items are covered properly.
Unmarried partners can often share a homeowners/renters policy. The benefit is that purchasing a joint policy can reduce premiums. There are however, a few considerations:
Checks for losses will be made out to both parties, regardless of whose property was damaged
One party can remove the other parties name from the policy without notice (in most states)
Insurance companies may require proof that each party owns some part of what is being covered.
If, however, the homeowners/renters policy is in the name of only one of the partners, only that partner and his/her belongings are covered.
Most insurance companies offer a “marital discount” when couples combine their separate auto policies into one. The discount can be even more favorable when the auto policies are combined with a homeowners/renters policy.
A Fiancée's Best Friend
Jewelers commonly recommend you invest 2-3 months salary in an engagement ring. When an investment is economic, emotional, and worn daily, insuring its repair or replacement is prudent.
Most homeowners/renters policies provide limited replacement coverage for jewelry, so you will probably need to buy additional insurance.
Consider these options:
Schedule (add) the ring to an existing homeowners/renters policy (yours or a parent's)
Buy a separate jewelry policy
In either case, you will need an appraisal and a description of the ring, which a reputable jeweler can provide at the time of purchase.
Bells Are Ringing
Wedding day celebrations can range from a social-page gala to an intimate party for two. Whatever style of wedding you choose, chances are you will be spending time and money planning and holding the event.
Special event policies can be purchased to cover all kinds of problems beyond your control, with the exception of a change of heart. Event insurance can't make your photographer show up if his flight is stuck in Cleveland, but it can help pay the cost to get another photographer or to restage your wedding photographs at a later date.
Coverages provided vary by policy and can include:
- Wedding attire and gifts lost or damaged
- Weather-related cancellation or postponement
- Alternate wedding location if yours is unusable
- Reimbursal for bankruptcy of a key vendor (caterer, florist etc.)
These policies can be quite cost-effective when compared to the total wedding day bill, and can be included in your gift registry.
Once you are married, you will need to review your health plans. If one or both of you participate in an employee-sponsored, or other form of group health plan, see your plan administrator for information on your options.
If one or both of you are uninsured or have individual health insurance policies, see an agent for advice.
Planning a Life
Although it's hard to think about life insurance as you prepare for marriage, it's thoughtful planning to consider the future welfare of your life partner.
Life insurance can be:
- Be more costly and harder to get the longer you wait
- Provide needed income against outstanding debts and future expenses
- Become an integral part of a financial plan that helps create future wealth