CHICAGO (MarketWatch) — As a host, you’re thinking of decorations, food and music when you plan a holiday party. But you might also want to give a moment’s thought to your home insurance.
While claims don’t necessarily skyrocket over the holidays, “we do see holiday accidents and liability claims you wouldn’t see ordinarily during the course of the year,” said Ron Laconi, president of the private client group at Chartis, an insurance firm. Sometimes claims file in after the holidays, as homeowners realize valuables have been damaged or are missing.
This time of year, slip and fall claims tend to become more common, as snow and ice make exterior pathways slippery and melted remnants sneak indoors to create slick floors. Large parties increase the risk valuable household items could be damaged or stolen. Serving alcohol at a party comes with its own set of responsibilities for a host, and when food is served proper safety precautions must be followed.
If you’re planning a fairly large party — especially if it involves guests that aren’t family or close acquaintances — you may want to check with your insurance agent to make sure your coverage is adequate. Moreover, it’s a good idea to protect yourself and your belongings by taking some proactive measures to keep your home and guests safe.
“Party planning is one of those times when an ounce of prevention is worth a pound of cure,” said James King, field technical manager at Chubb Personal Insurance.
Below is a checklist of things to consider before throwing a holiday bash.
Guest Safety
Some guest safety precautions are obvious: If it’s icy on the driveway or sidewalks that your guests will be walking on, sprinkle salt or gravel on surfaces to make it less slippery. Make sure both outdoor and indoor areas are well lit. And if there dangerous areas where guests shouldn’t wander on the property, clearly mark them, perhaps with temporary fencing.
Food safety is also a must. There have been cases where a mass number of people have gotten sick, and it can be pinpointed to a single meal or dish, said Christie Alderman, vice president, new products and services manager for Chubb. So wash your hands a lot when handling food, and make sure foods that need refrigeration don’t linger out on the countertop. Or, hire a caterer to handle the food for you.
To avoid serving guests too much alcohol, some hosts hire a bartender who will be able to recognize signs of intoxication in revelers. Stop serving alcohol toward the end of the evening, switching to coffee, tea and other non-alcoholic drinks, King said. And if a guest has had too much to drink, call a cab service to get them home safely.
Forty-three states have social-host liability laws on the books, and while they vary from state to state, many of the laws offer someone who is injured — such as a victim of a drunk driver — the ability to sue the person who served the alcohol, according to the Insurance Information Institute. “Because you are can be held legally responsible for your guests’ actions after they leave your party, hosts need to be particularly careful,” said Loretta Worters, vice president of the institute, in a news release.
For your own protection, these precautions are especially important for larger gatherings. “Your grandmother won’t sue you, but your husband’s office mate’s wife might,” Alderman said.
Check the help
If you choose to hire a professional service, such as a caterer, bartender or valet, make sure to check that they’re properly insured.
One homeowner hired a valet service for an event, and the attendant backed a guest’s $200,000 collector car into a tree, causing severe damage to the vehicle, Laconi said. The problem was turned over to the valet company, but the company’s liability insurance had lapsed.
If you choose to hire a professional service, such as a caterer, bartender or valet, make sure to check that they’re properly insured.
One homeowner hired a valet service for an event, and the attendant backed a guest’s $200,000 collector car into a tree, causing severe damage to the vehicle, Laconi said. The problem was turned over to the valet company, but the company’s liability insurance had lapsed.
In a hostile or severe situation, the wronged party may try and then sue the host, alleging that the company wasn’t properly vetted, Laconi said.
Keep a guest list
“When you’re looking at hosting a large event or fundraiser, it’s a good measure to have a guest list and monitor that and have them show their invitations,” King said. “You want to make sure you understand who is coming to the party,” especially when you open your doors to people who aren’t your personal friends, he added.
Consider the event type
While many liability issues are covered through homeowners insurance, some policies will have exclusions for certain event types, Alderman said.
“People will often do holiday tours, where they open their homes. Sometimes insurance will exclude it if there are tickets to get into the property,” she said. Or, for example, if you take a $5 donation for a glass of beer, you could also be falling under the state’s license to serve alcohol.
Call your insurance agent before the event with details, to make sure you’re properly covered for the type of party you’re planning.
Protect your valuables
Put valuables, including expensive pieces of art, out of heavily trafficked areas. That limits the possibility of items being damaged and stops guests from slipping something pricey into pockets or purses.
One party host took the door off the top of a stairwell that led to his wine cellar, so he could easily get in and out of it. A couple of curious guests went into the wine room and started opening expensive bottles of wine without the host’s consent, Laconi said.
People who own valuable art or jewelry can obtain a separate private collections insurance policy for appropriate protection, Laconi said. The Chartis policy, for example, covers the “mysterious disappearance” of a lost item, with no deductible, he said.
Amy Hoak is a MarketWatch reporter based in Chicago. Original Article can be found at: http://www.marketwatch.com/story/protect-your-home-when-hosting-a-bash-2011-12-05?pagenumber=1