Reader’s Question: How Big A Party Is Too Big For Your Home Insurance?

Here is the next installment in our the Reader’s Questions Series which highlight questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if your money question is chosen to be featured in an upcoming week’s blog post. If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It is one of my top ten best personal finance books that everyone should read. Now….on to our reader’s question.

How big does a party have to be to get excluded from you home insurance coverage? Or, what other factors determine your home insurance coverage?

There are limits to what is covered by your homeowner’s insurance policy, and house parties can quickly overwhelm your liability coverage if you are not careful. House party insurance is something that many party givers often forget. But, forgetting to ensure that a party is adequately covered can be disastrous for your finances.

When You May Need House Party Insurance

You may need house party insurance when you're the host.If a child gets hurt in a rented inflatable bounce house or a guest slips next to your pool during a party that you are hosting at your home, you may not be as covered by your homeowner’s insurance as you think you are. There are limits like all insurance as to what your policy covers, and typically events like a house party are not one of the covered items in your home insurance. You may need a special event or umbrella insurance policy to be adequately protected.

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