Weddings can be very costly. Americans spend about $26,000, on average, to tie the knot. The cost of dresses, services and the reception alone needed to make the ceremony a truly once in a lifetime affair can be very prohibitive that an extreme weather or a sudden change of heart leading to a cancelled ceremony can mean big financial loss. Insurance firms, however, are offering a way for couples to mitigate such losses with wedding day policies.
Wedding day insurance policies are offered by a small number of insurers in the U.S. and although these companies decline to give data on the number of their customers, they say the number of those availing the insurance grows steadily.
The insurance provides coverage for a number of issues and losses that couples might encounter such as undelivered vendor services and a sudden change of heart. Availing of the policy, for instance, could financially protect couples from issues that range from extreme weather, unexpected military deployments and service providers that do not show up on their wedding day.
Travelers, an insurance company with revenue of $26 billion per year, says a bulk of the claims concerns issues with photographers or videographers. The company began selling wedding policies in 2007 but claims that offering wedding insurance doesn't really affect much of the company's bottom line. Nonetheless, wedding day insurance allows the company to establish relationship with the couple who might one day think of the company for other insurance policies. "It could be the beginning of a relationship with a young couple," said Ed Charlebois, a Travelers vice president for personal insurance.
Fireman's Fund Insurance Co., on the other hand, offers coverage for a change of heart. The company has been selling the insurance since 2007 but because of rising cases of fraud, the coverage now applies only if either the bride or groom decides to call off the wedding nine months before their supposed big day.
"Coverage does not exist once you hit the altar," said Rob Nuccio of R.V. Nuccio & Associates, an agent for the Fireman's Fund. "The only ones who were buying it were the ones who knew they would have a claim."
