How to Prepare a Homeowners Insurance Policy for a Party

Whether it’s for a Christmas, Halloween or New Years celebration, most homeowners make sure that the party decorations are perfect, the food is ordered and the guest list is complete. However, they very rarely, if ever think about how their little shindig could affect their homeowner’s insurance policy.

It makes good sense for homeowners to review their policy before the big party and take a few precautionary measures to avoid having to file a liability or property damage claim. A little prior preparation can save money in the long run.

Difficulty: Moderate

Instructions

1. Consider the type of event and the potential hazards from an insurance standpoint. For example, Halloween trick or treaters don’t enter the home, but they do walk along the walkway. Make sure the walkway is clear, well lit and free from wires and hazards that can cause trips and falls.

2. Keep the dog away from guests. Although Fido is usually the sweetest dog known to man, but large social events may make Fido feel a little uncomfortable. Since dogs cannot ask the homeowner for a glass of wine to calm his nerves, he may react to the hoopla by getting agitated and biting someone. It may be that the strong perfume was the final straw or the loud laughter. No matter the trigger, to avoid potential pitfalls and lawsuits, its best to keep the dog away from guests.

3. Increase the homeowner’s policy liability limits for the day of the event. Call your insurance agent and request quotes for increasing the limit or obtaining an Umbrella liability policy to protect the homeowner for the day of the event. The additional premium cost is minimal compared to not having enough insurance to cover a lawsuit.

4. Create an alcohol policy. If the guests have more than a certain number of drinks, the alcohol policy must go into effect. In other words, don’t let your guests drink and drive. Nominate a designated driver.

Resources

• Reducing Your Homeowner Insurance Premium