The holiday season is in full swing. Decorating trees, baking cookies, and wrapping presents are some of the traditions we enjoy. Unfortunately, these fun traditions also come with risks that could cause damage to your home and property and put you and your loved ones in harm’s way. Here are some examples of risks and information on how your homeowners insurance policy may respond.
Scenario one
This year, you brought home your first live Christmas tree. While it was beautiful before, it’s even more spectacular with your new LED lights and ornaments. Unfortunately, with a busy work schedule and holiday activities, you forgot to water your tree regularly.
To make matters worse, your pet’s wagging tail knocked over a candle, and the tree caught fire. While the fire was contained quickly, there was some damage to your home. Your new grey leather couch is now charred and black, your 80-inch TV melted, and your living room walls and roof are damaged. If you submit a claim to your insurance company, will the damage be covered by your homeowners insurance policy?
Answer: While it’s best to avoid hazardous situations as much as possible, your homeowners insurance does offer coverage for accidental fire damage. Your dwelling coverage will cover the cost of repairing your roof and other home structures. Your damaged belongings, such as your couch and TV, may be replaced under your personal property coverage.
Scenario two
Earlier this year, you moved into your new home. Because this is the first Christmas in your new home, and the weather has been milder than usual, you decide to decorate the outside of your home like the Griswold's home in National Lampoon's Christmas Vacation. After days of laboring on your ladder, your home is finally decorated. You can’t wait to have people over to see it.
After a great night of singing holiday songs with friends and drinking eggnog, your visitors prepared to leave. On the way to his car, one of your friends tripped on a string of fallen Christmas lights and stumbled to the ground. Afraid he broke his arm, he went to the emergency room to have it checked out. Does your homeowners insurance policy provide coverage for his injuries?
Answer: Your homeowners insurance policy provides personal liability coverage if someone is injured on your property.
Scenario three
This holiday season, you decided to purchase all your gifts online. New packages arrived on your doorstep daily.
With the holidays over, you've turned your focus to your New Year’s resolutions, including financial well-being. You reviewed your bank statement and noticed small, miscellaneous, and mysterious charges from around the world. You contacted your local bank, as well as your credit card company, and learned your identity had been stolen. Does your homeowners insurance policy provide coverage for identity theft?
Answer: It depends. While it may not be an automatic coverage, it’s often possible to add identity theft coverage to your policy for an affordable premium. Before you become a victim of identity theft, contact your independent insurance agent to learn more.
Scenario four
You hosted a party at your home, and everyone had a great time listening to holiday music and enjoying their specialty drinks. After leaving the party, one of your friends had a car accident and caused significant damage to another vehicle. Does your homeowners insurance policy cover damages caused by your friend and possible injuries suffered by a third party?
Answer: Your homeowners insurance may provide coverage under your personal liability policy, but those limits may not be enough to cover the damages in today’s litigious society.
This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.
