A lot could go wrong on a wedding day, and for many couples seeking to tie the knot without a hitch, wedding insurance seems like a logical next step. Michael Melia of the Associated Press writes.
Shannon and Justin Peach married in New Orleans, so Shannon’s mom got Hartford-based Travelers Insurance just in case. There was no hurricane, but they used the policy to claim the deposit money they could not get back from the limo driver who failed to show. The bride took a cab to the ceremony. Image source: rgj.com
With the cost of the average American wedding reaching about $26,000, insurers have been selling a growing number of policies to protect against losses from extreme weather, illness and, in one firm’s case, even a sudden change of heart.
Cheryl Winter spent $500 for Travelers Cos. Inc. to cover her daughter’s $50,000 destination wedding last October in New Orleans, where her biggest concern was a potential hurricane. The weather cooperated, but the limousine never showed up. Her daughter took a taxi cab to the church, and they used the insurance policy to claim the deposit money they couldn’t get back from the limo driver.
“No one wants to be walking in the French Quarter in a long gown and high heels,” said Winter, who lives in the Houston area.
Firm finds way to cultivate couples
The insurance is offered by a small number of U.S. companies. Insurers declined to provide data on the number of customers beyond saying they are growing steadily. It can cover losses from issues ranging from bankrupt wedding halls to cancellations forced by unexpected military deployments. Travelers says issues with vendors account for about a quarter of the claims.
For Travelers, an insurance giant with annual revenue of $26 billion, the policies will not make or break the bottom line. But the wedding insurance it began selling in 2007 is also a way to connect with a couple who might later think of the company for home insurance and other life milestones.
“It could be the beginning of a relationship with a young couple,” said Ed Charlebois, a Travelers vice president for personal insurance.
Wedsafe, backed by Aon, also offers wedding insurance, which differs little from the specialty insurance that firms may offer for other kinds of events and celebrations.
Cheryl Winter’s photo shows her daughter, Shannon, riding in a taxi to her wedding in New Orleans, after her limousine failed to arrive. Cheryl Winter spent $500 for Hartford-based Travelers Insurance to cover Shannon’s destination wedding, where her biggest concern was a potential hurricane. They used the insurance policy to claim the deposit money. Image source: rgj.com
Fraud troubles change-of-heart policy
For parents concerned about a relationship souring before the exchange of vows, Fireman’s Fund Insurance Co. offers change-of-heart insurance.
It’s been available since 2007, but the program administrator said the fraud rate soared in the early years as policies were bought for couples who were known to be fighting. That coverage now applies only if the bride or groom calls off the wedding more than nine months beforehand.
“Coverage does not exist once you hit the altar,” said administrator Rob Nuccio of R.V. Nuccio & Associates. “The only ones who were buying it were the ones who knew they would have a claim.”
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