Couples are being urged to check exactly what their policy covers as disputes can involve cancelled venues, failed suppliers and unexpected costs.
Couples are being urged to check exactly what their policy covers as disputes can involve cancelled venues, failed suppliers and unexpected costs.(Image: Peter Cade / Getty Images)
Couples planning their big day are being urged to make five important wedding insurance checks to reduce the risk of being left thousands of pounds out of pocket if something goes wrong.
The Financial Ombudsman Service has investigated more than 600 complaints about wedding insurance over the past six years, with rejected claims, delays and disagreements over valuations among the problems brought to the free dispute resolution service.
Cases have involved venues becoming unusable following fires or flooding, businesses going bust, suppliers failing to provide services and illness affecting couples or close family members. Overseas weddings can also be affected by cancelled or disrupted travel.
The Financial Ombudsman is now encouraging people to make checking their insurance part of their wedding preparations, particularly as venues and suppliers can require substantial payments months or even years before the ceremony.
Andy Wright, Ombudsman Director at the Financial Ombudsman Service, said: “No couple wants to spend the run-up to their wedding thinking about what might go wrong, but often significant sums of money are being paid out long before the big day.
“Wedding insurance can provide valuable protection, but couples need to understand exactly what they’ve bought, what the limits are and, importantly, what isn’t covered. Taking a little time to check the details now could prevent them finding out later that their cover is not quite the perfect match.”
1. Find out exactly what is covered
Couples should not assume every cancellation, rearrangement or other problem will be covered by their policy.
The Ombudsman recommends checking the circumstances in which an insurer will pay out, including illness, problems with a venue, supplier failure, travel disruption, destination weddings and outdoor ceremonies.
2. Check exclusions and payout limits
Policies can contain exclusions as well as limits on how much will be paid for individual elements of a claim.
Pre-existing medical conditions, overseas weddings and particular types of disruption may also be treated differently, making it important to read the terms rather than assuming an event is covered.
3. Know who you have a contract with
This can become particularly important when a wedding planner or intermediary arranges other suppliers.
In one case investigated by the Ombudsman, the business operating a couple’s wedding venue went into liquidation.
Their insurance covered cancellation and rearrangement if their venue was in liquidation, but only if the couple had a written contract with that venue.
Their contract was instead with a separate wedding organiser which remained in business. The insurer paid the maximum £25,000 available under another part of the policy covering a supplier’s failure to meet contractual obligations, but refused to cover the cost of rearranging the wedding at another venue.
The Ombudsman agreed that the insurer had acted correctly.
4. Make sure your cover still matches the wedding cost
Wedding budgets can increase significantly after insurance is first purchased.
Couples who have increased guest numbers or spent more on their venue, catering, flowers, photography or clothing are therefore being advised to check that their original level of insurance remains sufficient.
Otherwise, they could discover they are underinsured when they need to make a claim.
5. Buy cover early and keep your paperwork
Problems can happen long before the wedding itself, including after substantial deposits have already been handed over.
The Ombudsman recommends arranging insurance in good time and retaining contracts, invoices, receipts and correspondence with suppliers in case evidence is needed for a future claim.
Another complaint investigated by the service involved a serious fire which forced a venue to cancel a wedding shortly before it was due to take place.
The couple were left almost £6,000 out of pocket for venue and accommodation costs, but their insurer initially argued that some of the money should be recovered from the venue.
After the couple unsuccessfully tried to recover their losses, the Ombudsman decided it was unfair to expect them to pursue legal action against the venue before their insurance claim could be settled.
The insurer was required to pay the outstanding claim as well as compensation for the distress and inconvenience caused.
Mr Wright added that anyone whose insurance claim is rejected and believes they have been treated unfairly should complain to the insurer first. If the dispute is not resolved, they can then take their complaint to the Financial Ombudsman Service.
