In part one we discussed that a homeowners policy may be available to handle losses involving fireworks. However, this is not always the case as there are instances where your homeowner policy does not offer coverage.
If it’s illegal for you to set off fireworks, this legal hurdle could result in any loss being excluded by the policy.
A homeowners policy is meant to handle losses related to owning and living in a home, there’s no coverage for a person who uses their home for making, selling, storing or distributing fireworks. Any business activity involving fireworks is going to cause a big problem if a loss occurs.
Who Is Injured Issue
Injuries to yourself or others in your household are not covered because Medical Payments and Liability coverage is designed to handle loss suffered by persons outside of your household.
Intentional Loss Issue
If an injury or damage to property is not an accident, there’s no coverage. Tossing a firecracker or aiming a bottle rocket at another person could be considered deliberate, even when no injury was intended. Deliberate acts and their consequences are commonly excluded by homeowners policies.
So when dealing with fireworks, make sure they’re legal, that they’re used carefully and only for entertainment. Then your chances are good that any loss may also be covered.
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