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5 smart money lessons from reality TV

Reality TV is America’s guilty pleasure.

But if you look closely, this popular pastime isn’t just entertaining. Some shows also provide some valuable money lessons.

“What Not to Wear”– Stacy London and Clinton Kelly often tell their shoppers to focus on getting some key high-quality staples for their wardrobe and then building their closet around those pieces. Just because an item is on sale doesn’t mean you need it.

“Extreme Couponing”– While most of us will never be as radical as the couponers on this show, it is true that you can save money by planning ahead. Learn coupon strategies, the importance of writing a grocery list, and finding sales by watching the show.

“19 Kids and Counting”– The average family does not have 19 children. However, the show that features the ever-growing Duggar family does provide tips on prioritizing how we spend our money. Cutting back on the miscellaneous spending can help you focus on something more important — the relationships you have with your family and friends.

“The Biggest Loser” ­– Slow and steady wins the race. This show proves that we can’t be discouraged if we fail to make any progress in our goals (health or financial) during one week. Forgive yourself when you lapse back into old spending habit and try again. Learning to save money doesn’t happen overnight.

“Pawn Stars”– Everyone wants to get a better deal. It never hurts to ask if there are any discounts being offered at the stores you shop at. While it may be difficult to learn how to ask for a better deal, it will pay in the long run.

A behind-the-scenes look at reality TV damage control

A slip-and-fall on “Wipeout” could literally wipe out the show. Real-world liabilities could wreck “The Real World.” And “Survivor” wouldn’t survive without policies from entertainment insurers.

There’s a big business behind every reality show, and those businesses need to protect their assets and reduce risk of liability.

The average entertainment insurance package includes: cast insurance, workers’ compensation, nonowned and hired auto, property coverage for sets, props, wardrobe and media (film, video and digital); third-party property insurance for location shoots; and errors and omissions coverage to protect the show’s intellectual property. For reality TV, general liability takes the place of cast insurance.

Of course, insurance packages are tailored to meet each show’s needs. Shows like “Fear Factor” that entail extreme risk-taking will purchase accident disability coverage. Dating shows such as “The Bachelor” are vigilant with wavers so participants acknowledge that are willing applicants and understand the risks involved, should any mean-spirited situations arise. Celebrity-driven shows like “The Apprentice” can complicate underwriting: If someone with deep pockets gets hurt, a lawsuit can be leveraged with big money. And roommate shows like “Jersey Shore” may be risky – what if a fight breaks out?

The big issue with reality TV is, it isn’t scripted, so you never know how people are going to react. It can make any underwriter nervous. But entertainment insurers also employ claims adjusters and experience onsite loss-control safety experts to make sure hazards are avoided, such as approving stunts and making sure cockroaches are safe to eat.

Insurance premiums for a reality TV show typically run 1 percent to 2 percent of the overall budget.  But as entertainment insurers will tell you, everything is insurable … for a price.