When do you need more insurance for a party?
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 caused by your guests 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. However, 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.[3]
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.[4] 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.[4]
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 will offer up to $500,000 in liability coverage. However, 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.[5]
See More: Types of Homeowners Insurance: Which One Do You Need?
