What If a Guest Gets Hurt? How Liability Coverage Works During the Holidays

The holidays are a time for joy, togetherness, and, of course, a revolving door of houseguests. From festive dinner parties to visiting relatives, your home may see more activity in a few weeks than it does all year.

But what happens if something goes wrong?

Whether you own your home or rent it, your insurance policy likely includes personal liability coverage, a critical yet often overlooked component that could protect your finances if someone is injured on your property or if you accidentally damage someone else’s.

What Is Liability Coverage?

Liability coverage under a homeowners or renters insurance policy is designed to help pay for bodily injury or property damage that you or a member of your household cause to others. It can cover legal defense costs, settlements, and medical payments, within your policy limits.

Importantly, liability coverage does not cover your own injuries or damage to your own property. It’s there for accidents that impact others, something that becomes increasingly relevant when your home is a hub of holiday activity.

‘Tis the Season… for Claims?

The holiday season unfortunately comes with a spike in liability claims. According to the Insurance Information Institute, the average cost of a liability claim on a homeowners policy is $30,324. Another study from Travelers Insurance found that more than 50% of all home liability claims stem from dog bites, falls, or property damage, risks that often increase with more guests, decorations, and distractions around the house.

Common Holiday Liability Scenarios:

A guest slips on an icy walkway leading to your front door.
A child trips over holiday decorations and breaks a wrist.
A guest’s coat gets scorched by a candle-lit centerpiece.
Your dog gets overly excited and bites Santa.
Your cousin Carl trips over the cat while carrying a flaming baked Alaska… right into the Christmas tree.

What You Can Do

Make sure your liability limits are adequate; $100,000 to $300,000 is standard, but you may want to increase that if you host frequently or have more assets to protect. Umbrella insurance can also offer an extra layer of protection above your base policy limits.

Peace of Mind for the Holidays

No one plans for a holiday mishap, but that’s the point of insurance. Liability coverage in your homeowners or renters policy ensures that a cheerful gathering doesn’t turn into a costly legal problem.