Does Homeowners Insurance Cover Damage from a Party?

Home insurance usually covers damage to your home from a party. But if you’re planning a big event or will serve alcohol, you may need extra coverage.

Alani Asis
Written byAlani Asis
Alani Asis
Alani Asis
  • 3 años de experiencia en redacción de contenidos

  • Artículos en destacadas publicaciones financieras

Alani es una escritora independiente especializada en finanzas personales. Su objetivo es hacer que los temas complejos sean más accesibles a través de contenidos divertidos y digestibles.

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Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

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Updated November 13, 2024

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Hosting a party can be stressful, and any number of things can go wrong. Fortunately, adequate insurance can protect your assets if your event goes awry.

Homeowners insurance offers financial protection for unexpected events on your property. For instance, if a guest slips and hurts themselves on your property, your personal liability coverage will typically pay the medical expenses up to your policy’s limits. Or, if a guest accidentally damages your property, your dwelling coverage will usually cover the repair costs.

But you may need additional coverage to protect yourself financially if you decide to host a large event or serve alcohol at a party. Here’s what you should know about host liability insurance.

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Does homeowners insurance cover a party at your home?

It depends. Homeowners insurance typically covers most damages and injuries that occur on your property during a party as long as a covered peril in your insurance policy causes them. But you may need to supplement your existing home insurance with event liability or liquor liability insurance if you plan on hosting a large event.

Read More: What Does Home Insurance Cover and What Does It Exclude?

Read More: What Does Home Insurance Cover and What Does It Exclude?

Does homeowners insurance cover a party you host outside your home?

Your homeowners insurance liability coverage may also cover injuries that occur away from your property.[1] For example, if your dog bites a guest at your party or your guests accidentally cause damage at the venue, your personal liability insurance may cover the damages.

If you host a party outside your home, the venue may require additional insurance to supplement their own. Some venues will only let you rent their property for your party if you purchase special event liability coverage.

Keep in Mind

Homeowners insurance policies have exclusions and coverage limits. It’s a good idea to check with the venue to clarify how much protection you need and how much their policy will provide.

What homeowners insurance protects when you host a party

You can rely on your homeowners insurance to cover your dwelling, personal property, and guest injuries on or off your property when you host a party.

  • illustration card https://a.storyblok.com/f/162273/150x150/79c140672c/types-of-houses-96x96-green_019-house.svg

    Dwelling coverage

    The dwelling coverage part of your homeowners insurance will cover the cost to replace or repair the dwelling and foundation of your property if it’s damaged during your party.

  • illustration card https://a.storyblok.com/f/162273/100x100/32ed42213e/personal-property.svg

    Personal property coverage

    Personal property coverage will compensate you for repairs or replacements of your personal belongings if someone damages or steals them during your party.

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Personal liability coverage

    Your insurance company will reimburse your guests for medical expenses resulting from injuries on your property.

What home insurance doesn’t cover when you host a party

Whether you throw a party at home or at another venue, your homeowners insurance will have exclusions. Your home insurance probably won’t cover the following:

  • Water damage: Standard homeowners insurance excludes damage from flooding and various water-related perils.[2] For instance, if your guest clogs the toilet at your event, basic homeowners insurance policies won’t cover sewer backup.

  • Wear and tear: Home insurance policies don’t cover wear and tear, such as scratches to your hardwood flooring or dents in an appliance.

  • Damages that exceed your policy limits: Suppose your guest slips next to your pool, and your liability limits don’t cover the entirety of their medical bills. In that case, you may have to pay out of pocket to cover the difference.

When you need additional insurance for a party

Host liability insurance protects you from injuries or damages incurred while you’re hosting an event.

While your homeowners insurance covers a range of damages caused on and off your property, you may need more coverage for a special event.

You may need additional insurance if:

  • You’ll be hosting a large number of guests in your home.

  • You’ll be serving alcohol.

  • You’ll be hosting a large party away from your property and you’re not sure if the venue or co-host has enough insurance.

  • You’re hosting a party at an expensive venue where the cost of any damages your guests cause could exceed your policy limits.

Event liability insurance

Venue owners usually have dwelling coverage to protect the property. They may also offer liability coverage to guests for any injuries incurred on their property. But some venues may require hosts to purchase separate special event insurance before renting the venue.

Special event insurance offers additional liability coverage that pays for expenses from damages and injuries at the venue. It also provides cancellation coverage, which returns lost deposits and other expenses when circumstances out of your control result in an event cancellation or postponement.

Liquor liability insurance

Forty-three states have social host liability laws, meaning hosts may be liable if adults or minors get injured as a result of getting intoxicated at a party.[3] Although business professionals like bartenders and food vendors usually have liquor liability policies, hosts can also purchase social liquor liability insurance.

Social liquor liability insurance is a short-term policy for hosts of special occasions like weddings or birthday parties. While your homeowners insurance policy may provide some liquor liability, you’ll likely need more. Consider purchasing liquor liability protection if you’re hosting a party with liquor.

Umbrella insurance

Consider umbrella liability coverage if you suspect the cost of damages or injuries at your party could exceed your liability limits. Most homeowners insurance policies offer up to $500,000 in liability coverage. But you may need more coverage, so you can buy umbrella insurance to increase your liability coverage limits.

Umbrella insurance can be helpful if you frequently host parties with lots of activity, such as pool parties. Insurance companies usually sell umbrella coverage in increments of $1 million. And you may have to purchase $300,000 in liability insurance before you qualify for an umbrella policy.[4]

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How to buy insurance for a party

If you’re planning to host a party or another large event, follow these steps to make sure you’re buying the right amount of coverage:

  1. Check your homeowners insurance coverage. Your homeowners insurance policy typically includes liability protection for special events. But you may want to purchase more insurance, depending on your coverage limits and the type of party you’re hosting.

  2. Gather information. It’s essential to know your party’s specifics before purchasing insurance so you can get an accurate quote. You should know details such as the date your party is happening, the number of guests attending, and whether you’ll be serving liquor.

  3. Shop around for party or event liability insurance companies. Explore online reviews and third-party rating agencies to determine the quality and reliability of each company.

  4. Compare quotes. Once you’ve narrowed your options, you may have to fill out a short questionnaire to get an event insurance quote. Ensure that your party’s coverage amounts and details are the same across each quote so you can make an accurate comparison.

  5. Choose an insurer. Comparison shopping is essential if you want to find the best rates. If you don’t feel like a specific company gives quality service or provides adequate coverage at a reasonable cost, keep shopping for an insurance company that works for you.

Keep Reading: 5 Best Home Insurance Companies

Keep Reading: 5 Best Home Insurance Companies

Host liability insurance FAQs

If something goes awry at your party, you’ll want to know you have adequate insurance coverage to pay for any damages or injuries. Check out this additional information about liability insurance and how it works when you’re hosting an event.

  • What are some insurance risks when you host a party?

    Some risks associated with hosting a party include damages or injuries an intoxicated person causes, a guest getting hurt on your property, and a guest damaging your or the venue’s property.

  • What is host protection insurance?

    Host protection insurance is another name for host liability insurance. This type of insurance covers you for any injuries or damages a guest causes while you’re hosting an event, whether it’s at your home or an off-site venue.

  • What are the three most common types of home liability insurance?

    Standard home liability insurance covers three main things: bodily injury that you or your family cause to other people, property damage to someone else’s property, and damage that your pet causes.

  • What kind of insurance do you need as a host?

    The type of insurance you need as a host depends on several factors, such as the type of event you’re hosting, the number of people who will attend, and whether you plan to serve alcohol.

    If you’re hosting an event at a big venue, the venue may require you to have an event liability insurance policy. If you’re hosting an event at your home, and you have a lot of valuables that could potentially be damaged, you may want to consider an umbrella policy for higher coverage limits.

Sources

  1. Insurance Information Institute. "What is covered by standard homeowners insurance?."
  2. Insurance Information Institute. "Homeowners Insurance Basics."
  3. Insurance Information Institute. "Social host liability."
  4. Insurance Information Institute. "Should I purchase an umbrella liability policy?."
Alani Asis
Alani Asis

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Alani has been a contributor at Insurify since January 2023.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

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