Does Homeowners Insurance Cover You When Hosting A Party?

What a homeowners policy covers depends on the kind of policy, optional endorsements, and incidents.

Needed Protections

Standard home insurance isn't always enough protection for a private party, so hosts may wish to consider event liability insurance. Speaking with a certified insurance agent regarding event insurance choices might be useful. However, some gaps are:

Guest Protection

Most conventional home insurance policies cover legal responsibility, which protects the insured if someone is hurt on the property and the host is at fault or if the host damages someone else's property. Insufficient coverage may exist. Special event insurance can provide a greater maximum for personal liability. However, hosts planning to serve alcohol of any kind may want to consider liquor liability insurance, as most event insurance does not cover accidents directly related to alcohol provided at the party.

Venue Security

Professional venues have event insurance to protect the buildings and property, and private party hosts may find it handy. Most home insurance policies cover the party property, but event liability insurance may be advantageous. If your event isn't in your home, some venues may request proof of liability coverage.

Refunds

Special event insurance may cover cancellation fees. Parties, baby showers, and other personal occasions are usually included. Public events or bachelor/bachelorette parties aren't covered.

Alcohol Protection

Too much drinking at parties creates poor decisions. Forty-three states have social host responsibility legislation, according to Triple-I. Under "Dram Shop Liability" legislation, the host could be held accountable if a partygoer drinks too much and gets arrested for DUI. A person wounded by a drunken partygoer may sue the host for offering alcohol.

Special event insurance may not cover all responsibly. Research your insurance options if you want to serve alcohol at a party. Hosts who serve alcohol benefit from liquor liability policies. These policies take several forms:

Bartenders, caterers, cooks, and food sellers need annual or short-term liquor liability insurance. Licensed vendors should have this insurance, but homeowners and others who serve alcohol can't get it. Business policy.

Short-term insurance for a party host's liquor liability. Homeowner's insurance may cover hosts serving alcohol, but you may want more coverage. Most host liquor insurance covers alcohol-related injuries and damages. This may be a separate policy or a rider on your house insurance.

Umbrella insurance: Homeowners can boost their financial safety with an umbrella policy, which costs less than $300 per year on average and adds $1 million in liability coverage to their standard house policy.