Memorial Day is approaching and, with it, the unofficial start of summer. Many minds turn to thoughts of cookouts, inviting friends over to swim in backyard pools, and evenings spent playing basketball games on driveways. Plans are made for July 4th celebrations with fireworks and sparklers. Few homeowners think that things could go wrong – perhaps catastrophically wrong – and that a claim might be made against them.
In comes the homeowners insurance policy. The basic coverages in a homeowners policy are well-known—property damage and personal liability. Property damage concerns damage to the property’s interior and exterior, and to personal assets and belongings. Personal liability coverage may pay for a claim asserted by a person who is injured or whose property is damaged. All of this is subject to the policy’s exclusions and conditions. One example of how the two coverages are different relates to swimming pools: The property damage part may provide coverage for damage to the pool itself. While the personal liability part may provide coverage for someone who is injured in or around the pool.
Many assume that their homeowners policy will provide coverage for anything that happens to, or at, their homes. You know what they say about assumptions – Unfortunately, homeowners insurance may not provide coverage for every claim that a homeowner may face. This article discusses two common summer activities and whether there may be coverage under a homeowners insurance policy for claims that may arise from each.
Parties
Depending on the circumstances, a homeowner could be liable for a guest who drinks too much alcohol and suffers an injury while on the property. The homeowner also could be liable to a third party when a guest drinks too much and later causes a car accident that injures someone. This type of liability is referred to as social host liability. Most states have social host liability laws, and those laws vary widely from state to state. Some limit the liability to injuries that occur on the host’s property, but others extend the host’s liability to injuries that occur anywhere an inebriated guest might go after leaving the host’s property. Most, but not all, social host laws pertain specifically to providing alcohol to minors.
The personal liability coverage part of a homeowners policy may provide coverage if the guest who drinks too much is injured on the property. However, it may not provide coverage for a claim made by a third party who was injured in a car accident with the intoxicated guest (if the third party has a legal claim against the host under the applicable state law). There may be several reasons why the policy may not provide coverage for that claim. Since many homeowners policies exclude coverage for claims arising from an illegal act, the policy likely will not provide coverage if a claim arises from the criminal act of providing or allowing a minor to consume alcohol.
Even though many states have legalized recreational marijuana use, it still is illegal under federal law. Most homeowners policies exclude liability coverage for criminal or illegal acts. Additionally, many policies specifically exclude liability coverage for the use of controlled substances as defined under federal law (including marijuana), unless the use is a legitimate medical use following the orders of a licensed physician.
Fireworks
Fireworks are almost synonymous with the Fourth of July. Many people launch fireworks in celebration of the holiday. Sometimes those celebrations can cause serious property damage—both to the homeowner’s property and to neighboring properties. According to the National Fire Protection Association, fireworks explosions started more than 31,000 fires in 2022. A misfired firework also can cause significant injuries. According to the U.S. Consumer Product Safety Commission’s 2022 Fireworks Annual Report, fireworks were involved with an estimated 10,000 injuries treated in U.S. hospital emergency departments.
There are two key points to keep in mind.
- Most homeowners policies have an exclusion for criminal or illegal acts. In states or municipalities where fireworks are illegal, then there likely will not be coverage under the property or liability coverage parts of the policy.
- Most homeowners policies exclude claims brought by members of the homeowner’s household. If members of the homeowner’s household are injured, then the liability coverage part of the policy likely will not provide coverage for their injuries. There may also be expansive definitions of who is a member of the household, including college students who were residents of the household before moving out to attend college.
It is important to develop a thorough understanding of your homeowners policy, the coverages, exclusions, and limitations. It is also important to consider your decisions and behaviors in light of these facts. Do not assume any claim will be covered by your homeowners insurance. Playing it safe does not mean you can’t have fun, but it’s far better to know these things up front.
Alexis Theriault is an attorney with the Boston-based law firm Conn Kavanaugh Rosenthal Peisch & Ford, LLP.
She can be reached at atheriault@connkavanaugh.com
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