Newlyweds and Insurance
written by: Dave Dionne
Insurance issues between newly married couples is an area that is best
reviewed prior to the wedding reception. Who's policy covers the wedding
gifts? If either the bride or groom has renters, homeowners, condo or
mobile home insurance, wedding gifts would be covered under their policy.
In a case where neither the bride or groom has any type of homeowners
insurance, coverage would depend on whether or not the bride or groom has
been living with their parents prior to the wedding. If either of them has
been living with their parents, coverage would exist under the parents
homeowners policy. The conservative way to approach this would be for the
bride & groom to purchase homeowners insurance prior to the wedding to be sure there is no question as to coverage for wedding gifts and other
combined personal property (furniture, appliances, etc). The nations
largest homeowners insurance company, State Farm, provides a "wedding
gift" endorsement, which can be added to an existing homeowners insurance
policy to provide coverage.
Jewelry requires an appraisal to be properly insured. Most insurance
companies add jewelry to a schedule, specifying the item by value, cut,
clarity, color, etc. Since most engagement rings are valued in the
thousands of dollars, it is advisable to insure the ring at the time of
purchase. Who should insure the engagement ring? Once the ring is given to
the future bride, most companies require that the bride-to-be add the ring
to her insurance.
In addition to insurance for personal property, newlyweds should also
combine their auto insurance policies and homeowners insurance policies
since multi-car discounts and multi-policy discounts will usually develop
the lowest combined prices. Couples should use some caution prior to
combining policies since most companies now use insurance credit scoring
to determine rates. Couples may want to combine vehicles and personal
property onto the policy of the individual with the best credit. Claims
history, poor credit or a bad motor vehicle record will negatively affect
merging insurance policies.
To help protect assets and to develop a long-term financial plan newlyweds
should also consider the types of life and disability insurance that best
fits their needs and budget. Visit with a local insurance agent to get
policy recommendations and coverage ideas.
About The Author: Dave Dionne has been a disc jockey in Maine since 1975 (www.djsmaine.com). He is also a licensed Property-Casualty & Life & Health insurance agent in Maine.
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