Social Host Liability

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.         

Disclosures

This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.