What Homeowners Insurance Will (and Won’t) Cover If Your Holiday Party Goes Awry
“Tis the season of holiday gatherings, twinkling lights and potential insurance headaches. Before you deck the halls and invite your whole group of friends, let’s unpack the not-so-fun details about how your homeowners insurance may (or may not) protect you during your holiday parties.
Your base coat
Most standard homeowners insurance policies include personal liability coverage, which can be a lifesaver if something goes wrong during your holidays. Usually this means:
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Injuries to guests that occur at your property
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Medical benefits for minor injuries
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Legal protection if someone decides to sue you for an accident
Insurance Limitations
However, your standard policy is not a magic shield against all party risks. There are several scenarios in which you could find yourself without insurance, namely alcohol-related incidents. Many homeowners insurance policies have strict limits on alcohol:
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If a guest at your party gets drunk and causes an accident
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Potential Legal Issues Related to Serving Alcohol to Minors
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Injuries sustained by drunk guests
How to get the coverage you need?
If your group is likely to be a high-risk certified rogue, consider some additional group protection measures. You can purchase event liability insurance to provide additional protection for individuals. For more comprehensive protection, consider:
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Purchasing short-term liability insurance
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Coverage of specific high-risk holiday gatherings
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Expanding existing coverage for one-off events
And when you know that alcohol plays a huge role in your celebration, you can take advantage of specialized “host liquor liability insurance.” This provides additional protection beyond standard homeowners insurance, covers incidents directly related to alcohol consumption, and helps protect you from potential lawsuits.
Follow state laws
Keep in mind that social host liability laws vary by state. In many jurisdictions, you may be legally liable for accidents caused by intoxicated guests, injuries to intoxicated guests, and property damage resulting from party-related incidents.
When to Talk to Your Insurance Agent
Before throwing a huge holiday party, schedule a quick chat with your insurance agent. They can help you:
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Find out your current coverage
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Explore additional insurance options
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Assess your specific risks associated with the party
Bottom line
As with all things insurance, the best form of protection is prevention. To minimize risk and keep your insurance company happy, consider hiring professional bartenders who won’t overserve your guests. Additionally, any good party should include plenty of non-alcoholic alternatives.
Your homeowner’s insurance provides basic protection, but is not a comprehensive plan to protect the parties. A little preparation and the right extra lighting can ensure that your holiday gathering is remembered for all the right reasons.
Disclaimer: Insurance policies vary widely. Always consult with a professional insurance agent to understand your specific coverage.