Fireworks and Insurance: What you Need to Know this Time of Year

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This is the time of year for celebrating with family and friends, particularly as the warmer weather nears. Part of summer gatherings for many includes fireworks displays- especially since many are staying home more often these days. It is estimated that consumers in the US spend more than $900 million annually on fireworks, which is why the industry professionals at Denver Insurance Agency want to remind you of the potential dangers of fireworks and offer some insurance tips, too:

Fireworks and Insurance

When it comes to fireworks and accidental injuries or damage, two different types of insurance are involved: your health insurance policy and your homeowner’s policy. Injuries to you or your family should be covered by your health policy, while injuries to others or property damage should fall your your homeowner’s insurance coverage. If your home- or a neighbor- catches on fire due to fireworks, it should be covered under the liability section of your homeowner’s policy, unless fireworks are illegal in your state.

Other Types of Coverage

So, maybe you don’t have health insurance or own a home. There are other types of insurance that you might carry that could help in the event of a fireworks accident:

Renters insurance

If you have Renters insurance, it typically covers the same things that homeowner’s policies would in terms of fireworks property damage. Again, your insurance won’t cover intentional property damage or when fireworks are illegal.

Car insurance

If somebody sets off fireworks and it damages your vehicle, the damage should be covered by comprehensive car insurance coverage. You will not be covered if you only have liability insurance, however.

Life insurance

If you die due to a fireworks accident, your Life insurance should pay out to your beneficiary. However, if you are lighting off fireworks in a state where they are banned, your loved ones’ payout could be denied.

If you work with or around fireworks, make sure that you inform your life insurance company to ensure you are covered in case of an accident. Expect to pay higher premiums when you work in a dangerous profession.

Non-Covered Incidents

So, when are fireworks not covered by your home insurance policy? Well, if children under age 12, you could be; teenagers causing the incident is less clear and could hold their parents responsible for the damages. Some other incidents involving fireworks that are not covered by insurance include:

• Illegal fireworks or fireworks set off in banned states. 

• A drought ban is in place.

• There is an intent to damage property when setting off the fireworks, such as a prank.

Furthermore, if fireworks are specifically excluded on your policy, you won’t be covered. Determine if the light show is worth the risk in these situations.

Storing or Selling Fireworks

Your insurance policy is not going to cover damages related to selling or storing fireworks, unless you have a separate business policy with specific allowances and coverages. Talk to your insurance broker or agent to learn more.

Illegal Fireworks

Fireworks are legal in many regions, but all fireworks are banned and prohibited in Massachusetts. Some other US states- Ohio, Vermont, and Illinois- have specific laws banning firecrackers, skyrockets, bottle-rockets, and other large types of fireworks. Areas that are in drought may also prohibit fireworks, even sparklers, during certain times. 

Fireworks are a safety hazard and The National Fire Protection Association reports that July 4th- typically the peak of fireworks season- has the highest number of fire reports than any other day of the year, and around 280 people present to emergency rooms in the US per day during this time of year. Denver Insurance Agency wants you to stay safe and keep these tips in mind regarding fireworks.