By Katharine Marrs
‘Tis the season to gather together! Are you hosting family or friends for the holidays? Here’s a look at how different insurance coverage would apply to any merrymaking mishaps.
Medical payments
This is a coverage available on your homeowners insurance policy that applies to injuries sustained by other people while on your premises. It does not apply to you as the policyholder, a tenant who pays rent to live in your home, or anyone under contract to do work inside your home. Worth noting, it also does not apply to injury that occurs during exercise or athletic contests.
The coverage applies regardless of fault and typically has a limit of $1,000 to $5,000. Higher limits may be available for endorsement from your insurance carrier. It can be used to help pay for doctor and hospital visits, ambulance services, X-rays, and health insurance deductibles and co-pays.
Premises liability
This is a coverage available on your homeowners insurance policy that applies to injuries caused by unsafe conditions. You have a responsibility to maintain your home and repair any items like broken railings, uneven sidewalks, or poor lighting. If an injury is caused as a result of your negligence, the injured person may file a claim against you that would fall under your premises liability.
The coverage typically has a limit of $100,000 to $500,000. Higher limits may be available for endorsement from your insurance carrier. It can be used to help pay for medical bills for the injured person, as well as bodily injury and property damages determined by a legal suit. The homeowners policy will also help cover the cost of your legal defense.
Host liquor liability
It’s always recommended to use moderation if you are planning to consume alcohol. As a host, you must also consider how the alcohol you’re serving can affect others. Intoxicated guests may be more likely to cause property damage or bodily injury to others, especially if they leave your party and get into an auto accident. You may be held liable for their actions if you provided the alcohol.
Your homeowners policy may provide some coverage under social host liability. This is intended to cover private events rather than commercial ventures where alcohol is being served for a fee. Check your specific policy to see if liquor liability is covered and at what limit. Consider a special event policy if you are planning a party with a large number of guests or a significant amount of alcohol.
Another excellent hosting practice that helps limit your liquor liability is to arrange for overnight accommodation or a safe ride home for any of your guests who may have consumed too much alcohol to make their own way home safely.
Umbrella
Excess liability is often available under a separate umbrella policy. This provides an additional layer of protection for your personal assets. If a claim is covered under an underlying policy such as your homeowners or auto policy, but damages exceed those limits, the umbrella would offer additional limits of liability. In some cases, the umbrella policy can provide broader coverage for claims that would not be covered under an underlying policy, such as a personal injury claim for libel or slander.
About Howard Hanna
Howard Hanna Real Estate Services proudly provides real estate, mortgage, title, and insurance services across 14 states. As the largest family-owned and -operated real estate brokerage in the United States, Howard Hanna operates more than 500 offices with 15,000 sales associates and staff. The company’s proprietary Hanna Success System helps its agents achieve 53% more business than agents at the top 1000 brokerages nationally. Learn more at www.HowardHanna.com.
