There are many life changes, such as buying a car, where getting proper insurance is important. This also applies to marriage. The right insurance can help couples save money and cover financial losses if their assets become damaged. As part of tying the knot, here are four insurance-related tips to not forget:
1. Bundle auto insurance policies to save money
It can be easier on the wallet for soon-to-be spouses to combine their car insurance policies. A BrokerLink personal insurance broker can advise couples on how they can bundle policies for the best savings.
For auto policies, it’s also important to inform a broker if the policy holder’s last name has changed. If a last name has changed, this needs to be reflected on the insurance policy. A broker may also ask if the drive to work has changed for either spouse. This is important for the broker to understand because a longer or shorter commute may increase or decrease risks. For example, if one spouse has a two-hour drive to work, it could increase the likelihood of being involved in a car accident.
2. Name both partners on a home insurance policy
Should there be an unexpected event – such as a fire – where newlyweds lose their home, home insurance can cover replacement costs. However, if only one spouse is named on a home insurance policy, the other may not be financially compensated. Naming both spouses on a home insurance policy can help avoid such an outcome. A BrokerLink broker will help couples assess their current insurance and dollar value of their belongings to determine the best coverage.
3. Get coverage for the bling
While dependent on the home insurance policy, $6,000 is usually allocated to replace lost, stolen or damaged jewellery. Getting a personal article floater – separate insurance for the ring – could help if the value of the ring is greater than the policy limit. To get a personal article floater for an engagement ring, it needs to be appraised for its current value. If the ring is not appraised for its current value, the person may not get back the full value of the ring if it is lost, damaged or stolen. An appraisal also locks in the value of the ring to prevent changes in the economy (i.e. inflation) decreasing the value of the ring. Additionally, if there is a claim, having a personal article floater could prevent paying a deductible (money paid to receive insurance funds). A broker will require the proof of appraisal to create the personal article floater.
4. Before the wedding: consider wedding insurance
Weddings in Canada can cost upwards of $30,000, according to the 2015 Weddings Bells magazine report. Wedding insurance can help cover financial losses which could occur due to wedding cancellation, lost deposits for vendors, and lost or damaged attire (such as a wedding dress). A BrokerLink broker can help a couple determine the type of wedding insurance which will best protect their big day.
Say “I do” to insurance advice
Our personal insurance experts can advise newlyweds about insurance coverage that can help couples avoid financial losses, and how to protect their special day.
Before or after walking down the aisle, contact a BrokerLink broker.