Fireworks and Insurance
Fireworks are a popular way to celebrate holidays, especially in Texas, but they also come with significant safety and insurance risks. Fires, injuries, and property damage caused by fireworks lead to thousands of insurance claims each year. Understanding how insurance applies can help protect you financially before lighting the fuse.
How Home Insurance Covers Fireworks Damage
Homeowners insurance typically covers fire damage caused by fireworks, whether the fire starts on your property or spreads from a neighbor’s yard. Covered losses may include:
- Structural damage to the home
- Smoke and soot cleanup
- Damage to fences, sheds, and garages
- Personal property damaged by fire or water
However, coverage may be limited or denied if fireworks were used negligently or illegally.
Liability Coverage and Fireworks Injuries
If someone is injured by fireworks on your property, personal liability coverage under your homeowners policy may help pay for:
- Medical bills
- Legal defense costs
- Court judgments or settlements
This applies to guests, neighbors, or bystanders. Liability coverage does not apply to injuries suffered by the homeowner or household members.
What Happens If Fireworks Damage a Neighbor’s Property?
If your fireworks damage a neighbor’s home, vehicle, or belongings, your liability coverage may respond. If damages are severe, your insurer may investigate whether safety precautions were taken.
If your neighbor’s fireworks damage your property, your own insurance typically pays first and may later pursue reimbursement.
Auto Insurance and Firework Damage
Fireworks damage to vehicles is usually covered under comprehensive auto insurance, which covers non-collision events like fire, vandalism, and falling objects. Liability-only policies do not cover firework damage.
Commercial Insurance and Fireworks Sales
Businesses selling fireworks or operating fireworks stands need specialized insurance. Coverage may include:
- General liability
- Product liability
- Commercial property coverage
- Commercial auto for transporting fireworks
Fireworks businesses face higher insurance requirements due to the increased risk.
Illegal Fireworks and Coverage Issues
Using illegal fireworks can complicate insurance claims. While insurance may still cover accidental damage, insurers may deny claims if illegal activity directly caused the loss.
Conclusion
Fireworks can be fun, but they come with serious insurance considerations. Reviewing your policy, following safety laws, and understanding your liability can help prevent costly surprises and ensure you’re protected during celebrations.
