As the weather warms and life takes on a slower summer pace, many homeowners begin hosting parties at their home. Generally, guests to your home are covered by the personal property insurance part of your homeowners’ insurance policy. If a guest requires medical assistance as a result of an injury suffered on or near your premises, your homeowners’ insurance should cover a portion of his or her medical expenses, up to the stated limit.
For example, if your dog were to bite your guest, your homeowners’ insurance should, generally, cover your guest’s medical bills. However, as a host, you open yourself up to different types of liabilities, depending on the activities that occur at your home. If you were hosting a party and serving alcohol, your policy may not cover you if your guest were to leave and be involved in an accident. However, depending on state laws, you could be held liable for your guests actions.
This is often referred to as social host liability. Liability laws are different from state to state, and likewise, homeowners’ insurance products can differ substantially in what is covered and what is not covered.
If you plan to host an event at your home, you should check your homeowners’ policy for limitations for liquor liability or other riders or extension endorsements. With newer policies, it may be wise to assume you do not have coverage for incidents that may happen because of an event at your home. Before hosting an event where alcohol is served, we suggest that you read your policy and discuss your coverage with your agent.
It is important to note that your umbrella policy only extends the underlying limits of your homeowners’ policy. Therefore, if your homeowners’ policy excludes coverage for liquor liability, your umbrella policy would not cover an alcohol-related incident.
At Henssler Financial we believe you should Live Ready, which includes understanding the liability you expose yourself to when hosting an event at your home. If you have questions regarding your homeowners’ coverage, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or e-mail at experts@henssler.com.