This guest blog post is contributed by Boomerater, a free online resource for Baby Boomers. Seniors for Living’s properties are featured in Boomerater’s Senior Housing directory.
A new Boomerater post appears here every other Friday. This week, a featured Boomerater financial planner, Steve Stanganelli, CFP®, CRPC®, explores wedding dreams… or the wedding bell blues. Steve discusses how insurance can save the day when planning weddings, anniversary wvents, and other once-in-a-life-time celebrations.
Whether you’re planning for your daughter’s wedding, a celebration to renew your own wedding vows, or a grand 50th anniversary bash, a lot can happen to turn your dream day into a financial nightmare.
According to CostofWedding.com (where you can enter your zip code to find out the cost of weddings where you live), couples in the U.S. pay an average of $19,500 for a wedding, not including the additional costs of the wedding rings and honeymoon. That number rises closer to $39,000 when factoring in these items, say experts at BridePop.com. However you slice it, that’s a pretty significant piece of change that could buy the equivalent of a new car or even a decent down payment for a first home. And the unexpected can happen…
- What happens if after months of meticulous planning, you find out that the venue for the reception just went bankrupt or has burned to the ground?
- What if you need to postpone the ceremony because an important member of the bridal party or a parent or grandparent suddenly falls ill?
- What about the rowdy guest who crashes a car at the reception, or what if another guest slips, falls, and breaks a hip?
When you decide on the professional consultants you will use – the florist, photographer, musicians, seamstress, caterer, travel agent, etc., don’t forget the financial planner. He or she may not be able to pick out the perfect flowers, but can help you plan the cost of the wedding and help you protect your investment.
Wedding Insurance Can Ease the Stress
To minimize the impact of such disruptions, couples and their families should consider buying wedding insurance from a reputable specialty carrier that has a solid rating.
With all the costs associated with an already-expensive occasion, no one wants to blindly add to the expense. But insurance is one thing you can purchase that may provide some peace of mind on an already stress-filled day. Consider it a gift you give yourself to protect your financial security and your serenity.
While “runaway brides” may or may not be covered, check the fine print; the other more mundane expenses can include a wedding cake that falls apart in transport, a videographer who gets sick and is a no show, a change of venue due to a fire or double-booking, a photographer who loses the camera or film, or even the fancy crystal gifts from Aunt Helen that walk away.
Insurance for a wedding or large catered celebration is relatively inexpensive and may potentially save a significant amount of money if something unexpected happens. It is usually based on the cost of the wedding or event and can range from $239 for $7,500 cancellation coverage/$500,000 liability coverage to $426 for $50,000 cancellation coverage/$500,000 liability coverage. (For more detailed quotes visit www.wedsafe.com).
Such insurance can help cover the cost of finding replacements or reimbursing out-of-pocket deposits.
Aside from the costs of replacement vendors, consider the risk and cost of personal liability. Considering a reception in a museum? What about possible damage to the artwork? Or maybe a guest gets a little too tipsy and decides to play a little “bumper cars” on the ride home and sues you as the party host.
Your homeowner’s insurance liability coverage will not extend to such risks. Even a personal liability umbrella may not offer any protection. Insurance specifically purchased for the event can offer financial protection for a wide range of potential problems. It is one way you can prepare for the unexpected, helping to keep the day as stress-free as possible.
Continue reading the entire article about how insurance can save the day when planning your family’s next special event.
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Steve Stanganelli, CFP®, CRPC® is a board-certified personal finance guide who works with individuals and families to plan well and invest smart to live better. Steve also offers a free online planning service available at www.SmartMoneyRoadMap.com