When you’re engaged, planning your dream wedding can be fun. However, during this exciting time, it’s important to remember to factor in the practical aspects of a wedding, such as insurance. Here are some other types of insurance to be aware of before Before you say “I do,” you and your significant other may want to consider shopping for the following insurance:
1. Insurance for the ring
The average cost of an engagement ring today is nearly $6,000, according to wedding website the Knot. So what happens if that ring is lost or stolen? Most standard homeowner’s and renter’s insurance policies include coverage for theft of personal items such as jewelry, but the dollar amount is limited—typically around $1,000 to $2,000.
To insure jewelry properly, you may want to consider purchasing a floater or endorsement policy, also referred to as “scheduled personal property coverage.” In most cases, these add-ons to a homeowner’s or renter’s policy will also cover you for “mysterious disappearance.” (This means that if you or your soon-to-be spouse were to accidentally lose the ring, you’d be covered.)
Unlike a standard homeowner’s policy, many floaters and endorsements carry no deductibles, so there will be no out-of-pocket expense to replace the ring (though you may pay more in insurance premiums for the extra coverage). You may want to send a copy of the appraisal for the ring to your insurer so there’s a record of its current value. If your jeweler didn’t provide you with an appraisal, your insurance professional can recommend a reputable appraiser.
2. Insurance for the nuptials
Wedding insurance is special event insurance coverage. It protects a couple’s investment from circumstances beyond their control and reimburses them for expenses incurred. This insurance usually costs between $125 and $400 to purchase, and it covers a couple if they have to cancel or postpone the wedding for situations like adverse weather; a natural disaster; or illness, injury, or death of an immediate family member.
Additional coverage (often called a rider) can be purchased to cover cancellation or postponement due to the bride or groom being called into duty as a member of the military. However, you’ll be out of luck if you decide to call off the wedding before the big day for personal reasons—a change of heart usually isn’t covered.
A special event insurance policy can also cover additional expenses, such as a last-minute replacement for a caterer or limo driver. Other coverages include protection for video and photographs taken by professionals, gifts that are damaged or stolen, and liability insurance (including liquor liability, if you are serving alcohol at your wedding).
Before you purchase a wedding insurance policy, check with the vendors you’ve retained for the big day to see what kind of coverage they have. Your reception site or caterer may already have insurance, and you don’t want to pay for overlapping coverage. Ask vendors for a copy of their insurance policy and figure out where you aren’t fully covered.
3. Insurance for your home
If you’re not already living with your significant other, once you move in together you may need to increase your coverage limits to fully insure your combined households. This is also a great time to create a home inventory for all those wedding gifts.
4. Insurance for your cars
If both you and your spouse-to-be have a car, take the time to review your existing coverage and find out the best way to merge your auto insurance policies. Do your research to find the company that offers the best combination of price and service. Don’t forget to ask about discounts, as there may be savings for insuring multiple cars or for being married.
5. Insurance for your life
Remember that this union is “for as long as you both shall live.” Be sure to review and update the beneficiaries in your life insurance policy. If you don’t have life insurance, now may be the time to purchase some.
It may be possible for you and your spouse to be insured under one life insurance policy for less than what you’d pay for separate policies. Some group life insurance plans offered through an employer will even extend coverage to spouses at the same group rates. Bear in mind, though, that you can’t take your group life insurance with you when you leave your employer. If you do plan to leave, you might want to consider getting your own individual life insurance policy.
Loretta L. Worters is vice president of the Insurance Information Institute, whose mission is to improve public understanding of insurance – what it does and how it works. Ms. Worters is an author and woman’s advocate who appears regularly on TV, radio and in publications. Follow her on twitter at @LWorters.