Cancelation Insurance – Unraveling Sub-Limits

Planning a wedding is a thrilling experience, filled with dreams of a perfect day. However, the journey to the aisle can sometimes take unexpected turns, throwing even the most meticulous couples off balance. Imagine your photographer cancels, your catering company goes bankrupt, or unforeseen circumstances force last-minute changes. These situations can lead to unexpected expenses, leaving you stressed and worried about your budget. That's where eWed's wedding cancellation insurance steps in, ensuring your dreams remain intact, even in the face of unforeseen challenges.

Sub-Limits Demystified:

Event cancellation insurance policies always have a stated policy coverage amount (e.g. $10,000, $15,000, $25,000, etc.). These policies also have what are called sublimits. Sublimits only apply when the wedding is not canceled or postponed but instead there is an issue with a particular vendor (say your DJ or photographer does not show up or goes out of business). If the wedding is canceled or postponed, sublimits no longer apply and you have the full policy coverage amount to use towards any lost funds.

Sub limit categories typically include the following: Extra Expense, Photo & Video, Gifts, Special Attire, Special Jewelry, Loss of Deposit, and Professional Counseling. More on Extra Expense below. The Loss of Deposit category covers vendor deposits that are not covered by one of the other more specific categories. Here is what they typically look like for a $15,000 cancellation policy.

Policy Coverage Amount

Extra Expense

Photo & Video

Gifts

Special Attire

Special Jewelry

Loss of Deposit

Professional Counselling

$15,000

$15,000.00

$1,500

$1,500

$1,500

$1,500

$3,000

$650

For example, a $15,000 policy might have a photography sublimit of $1,500, meaning if you paid your photographer a $2,000 deposit, the policy would reimburse you for $1,500. However, if you had to cancel or postpone your wedding due to severe weather, then the policy could pay you the full $2,000 for the photographer.

Another example could be your florist calls you up and tells you they are bankrupt, and your $2,500 floral deposit is gone. This could be covered under the sublimit “Loss of Deposit”. The Loss of Deposit category is a catch all category for any deposits you paid that are not included in the other specified sub limit categories.

Extra Expense, is roughly defined as an amount you would need to spend to avoid an otherwise larger loss. What does that mean? Let’s say for example, your caterer has a fire in their kitchen the week before your wedding and you need to scramble at the last minute to find a replacement caterer. You paid your original caterer $5,000 (above the Loss of Deposit amount) and the last-minute replacement caterer can step in but there is a $1,000 rush fee in addition to the $5,000 for catering services.  Extra Expense could cover the full $6,000 because without a caterer, you would be justified in postponing the entire wedding which could result in a loss for the full $15,000. Extra Expense pays the increased amount because if they didn’t you would cancel the entire wedding due to not having a caterer.

The gray area for Extra Expense comes into play if a non-essential vendor bails on you (e.g. you could have your wedding without a DJ or photographer but definitely not without any food or beverages). Unfortunately, gray area questions can’t be answered in a blog, sorry. These have to be answered on a case-by-case basis.

In conclusion, eWed's wedding cancellation insurance not only provides protection against unexpected challenges but also demystifies the complex world of sub-limits and extra expenses. It offers peace of mind, enabling you to embrace the excitement of your wedding journey without the worry of unforeseen costs. With eWed by your side, your dream wedding remains within reach, no matter what surprises may come your way.

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