Does Homeowners Insurance Cover You When Hosting A Party? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: chee gin tan/Getty Images December 02, 2021 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. There’s nothing quite like gathering with friends and family. Some of life’s best moments happen when loved ones are gathered together. But having people over at your home comes with liability risks. Many hosts may find themselves asking, “Do homeowners insurance policies cover parties?” Compare rates and save on home insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form What a homeowners policy will and won’t cover depends on what you have, what optional endorsements you have purchased and what specific incidents occur. Bankrate’s insurance editorial team can help you navigate the ins and outs of home insurance and hosting. What protections are needed
Relying solely on a standard home policy may not be enough protection for a private party and hosts may want to consider specialized insurance for event liability, which can help fill in coverage gaps. Speaking with a licensed insurance professional to learn more about event insurance options can be helpful, but some of the gaps covered by this type of policy include: Protection for misbehaving guests
Most standard home insurance policies include some protection for legal liability, which is designed to protect the insured if someone is injured on the property and the host is found at fault, or if the host is at fault for damage to someone else’s property. However, the coverage may not be sufficient. Special event insurance can provide a higher coverage limit for personal liability, although hosts planning to serve alcohol may want to consider liquor liability or host liquor liability insurance, as most event insurance does not specifically cover incidents directly related to alcohol served at the party. Protection for the venue
Many professional venues carry event insurance to protect the premises and property, and private party hosts might find similar event liability coverage useful. Most home insurance policies provide some protection for the property where the party is being hosted, but looking into additional event liability could be worthwhile. If your event isn’t at your home, some venues may require you to show proof of liability coverage up to a certain amount before they will agree to rent you the space. Event cancellation
Special event insurance often covers associated costs if an event unexpectedly needs to be canceled. Typically, the type of events covered include birthday and anniversary parties, baby showers and other personal events. Events open to the public or bachelor and bachelorette parties are usually not covered. Protection for serving alcoholic beverages
Many parties involve alcohol, but drinking too much often causes people to make poor decisions. According to the Insurance Information Institute (Triple-I), 43 states have . Under these laws, also known as “Dram Shop Liability,” if someone drinks too much at a party and is arrested while driving under the influence, the host could be held partly liable. Or a person injured by someone who was drinking at a homeowner’s party might be able to sue the party host for serving alcohol. Special event insurance typically may not fully cover this kind of liability. If you are planning to serve alcohol at a party, you may want to know about the types of coverage available to you. Liquor liability policies add an extra layer of protection for hosts who serve alcohol. These policies come in a few forms: Liquor liability insurance: This is an annual or short-term policy for hired professionals who serve alcohol, including bartenders, caterers, chefs and food vendors. Licensed vendors should already carry this type of insurance, but it isn’t available for homeowners or anyone who isn’t professionally serving alcohol. This is a commercial, or business, policy. Social host liquor liability insurance: This is a short-term insurance policy designed to provide extra coverage for a party host. Homeowners insurance policies may provide limited coverage for hosts serving alcohol, but you may want to consider more coverage just in case. Most host liquor policies offer coverage for bodily injury or property damage related to alcohol. You may be able to purchase this as a standalone policy or as a rider on your existing home insurance policy. Umbrella insurance: Homeowners can also increase their financial protection with an umbrella policy, which typically includes a minimum of on top of liability limits included in your standard home policy and costs less than $300 per year on average in premium. Potential insurance risks when hosting a party
Many event-related risks can be mitigated before anything happens. Here are a few potential issues to keep in mind when planning an event. Injuries
Injuries are more common when many guests are packed into a small space and when alcohol is involved. Most standard home insurance policies come with medical payments coverage, which pays for injuries regardless of fault, and liability coverage, which pays for injuries and legal fees when you are found at fault for a guest’s injuries. If you are hosting a big party, talk to your insurance agent about your coverage limits. You may want to increase them or purchase an for added protection. Underage drinking
Even when alcohol is carefully monitored at a party, underage children might try to sneak a drink, opening the host to risk of being held liable. Talk to the guests at your party to ensure everyone is aware not to serve alcohol to any underage guests. You’ll also want to ensure any open containers are kept in areas that aren’t easily accessible to children. You could face substantial fines and even criminal charges for serving alcohol to minors at a private function in your home. Drinking and driving
Due to social host liability laws, a host could be held liable for people who drink at the party and then drive. As a host, you have a responsibility to ensure your guests are sobered up and safe to drive home. Gathering up the keys of those who plan to drink might help you control how and when guests leave a party. You could also ensure that each group of guests has a designated driver who abstains from drinking alcohol during the party. Property damage
Having multiple people in a private home can lead to property damage, theft and broken personal belongings. Your home insurance policy might pay for these damages if they are over your deductible, assuming that the damage was caused by a covered event. Understanding the that your policy covers might be a good step to take before hosting a party. How to prevent damages when hosting a party
A bit of planning can go a long way toward limiting liability and damage risks when hosting a party. Pay attention to the areas where the event will be held and take note of potential problems. Here are a few preventative measures to consider: Offer food and non-alcoholic drinks. Eating food can help to offset the effects of alcohol. Additionally, offering tasty alcohol-free drinks gives people another option to enjoy while reducing the risk of alcohol-related incidents or damage. Use a professional bartender. Hiring a professional bartender might help offset the personal liability involved with serving drinks at a party. Professional event bartenders typically carry liability insurance, but you can always ask to see proof of insurance to be sure. Serve alcohol from a single source. Even if a professional bartender is not used, alcohol flow can be more easily monitored if it’s only available in one place during an event. Encourage ridesharing and designated drivers. If a guest has been drinking, guide them away from driving. Instead, offering ridesharing services or having a designated driver on hand can help guests get home safely. Consider collecting car keys as guests arrive so that it’s easier to ensure everyone’s safety at the end of the party. Stop serving alcohol at a certain time. Once it gets late, you can use other drinks to substitute for alcoholic ones to help curb intoxicated driving. Offer a place to stay. If it’s obvious that a guest shouldn’t drive when the party ends, offer them a spare room or couch. Reserving a few spots in the house for guests who may become inebriated could be the safest approach. Air beds are also an easy and inexpensive solution. Act as a responsible host. Party guests typically follow the host’s lead, so act responsibly and avoid drinking too much. It will also be easier to respond to emergencies or issues with a clear head. Frequently asked questions
What is the best home insurance company
A homeowner’s insurance needs can change quite a bit depending on location, home value, home size, and , so the will vary by homeowner. Because each company has its own coverage types, discounts, policy features and rates, it helps to shop around to get quotes from a few different providers and compare rates to see which one is best for you. Does home insurance include personal liability protection
is a common coverage included on home insurance policies. However, liability coverage isn’t always included on home policies. Coverage may be limited or excluded based on your personal rating factors and claims history. Before buying special liability insurance for an event, check with your current provider to see whether your current home insurance policy will cover your needs for the party. Umbrella coverage may also be a good option to provide you with additional liability protection. Where can I find more information on event insurance policies
The best sources about event insurance and liability protection are your current home insurer or a licensed insurance professional. Many providers offer event insurance, or their standard home policy might provide adequate coverage for an event. Remember that serving alcohol may require additional coverage, such as host liquor insurance. How can I be a responsible party host
The Triple-I to help protect yourself and your guests: Hire a professional bartender to serve drinks Ask guests to choose a designated driver before the party Limit your own alcohol intake to monitor others Offer alternate drink options and serve food Do not pressure guests to drink alcohol Restrict minors from having access to alcohol Stop serving liquor well before the party ends If guests drink too much or appear too tired to drive home, contact a rideshare service SHARE: Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance. Related Articles