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If the COVID-19 crisis has taught us anything, it is that life can change in the blink of an eye. Once considered fixed in stone, floors can be canceled without notice. In fact, countless weddings, family reunions and celebrations have been canceled in the past five weeks due to social removal mandates.
If you are planning an important event such as a wedding, a family reunion or a quinceañera, there is a good chance that you are spending a lot of money to make it happen, maybe even a big chunk of your savings. But even if that event is scheduled for a year or two in the future, who can say that then we won't be at a social distance? Or what if another unexpected crisis gets ruined with your event plans? What happens if someone in your family is injured or ill, requiring a change of plans? Or what if a weather event ruins your plans or causes travel issues that prevent guests from attending?
Neither of these scenarios can be ruled out, which is why it might pay off to consider event cancellation insurance – especially if you're investing a lot of money for the event in question.
How event cancellation insurance works
Event cancellation insurance is similar to travel or travel insurance. Purchase a policy that reimburses you for financial losses if things related to your event go wrong. This could include a supplier who withdraws at the last minute. Or it could cover your losses if you need to cancel your event and lose the deposits or non-refundable payments that you have already invested towards the sellers or the venue itself.
Obviously, your policy will have an external coverage limit, which is the maximum amount that will be refunded to you if your event does not go as planned, or if you have to postpone or cancel entirely. You may also be required to pay a deductible before the policy pays the claim, similarly to a deductible that you would pay for a claim against your auto insurance or homeowners insurance.
How far in advance do I need to purchase an event cancellation insurance?
Typically, you can purchase coverage for event cancellation up to 24 months before the event. You will need to purchase a policy at least 14 days before the event, according to Allstate.
How much does the event cancellation insurance cost?
The cost of the policy will depend on a number of factors, including how much coverage you need and the location of your event. Progressive reports indicate that you can insure a marriage for a minimum of $ 66, but it could be a lowball estimate. The best solution is to get quotes from several insurance companies if you are interested in buying a policy.
You never know when your big plans could go wrong, even if the world isn't in a pandemic. Just as you would probably buy travel insurance for a great trip, you should also consider cancellation insurance for a great event that you are organizing. A modest prize could give you much peace of mind.
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