The National Fire Protection Association reported direct property losses amounting to $59 million as a result of fireworks in 2021. Homeowners and renters insurance could cover the costs associated with property damage and liability, however, some policies will not support claims linked with illegal fireworks.
Typically, renters and homeowners insurance policies may include coverage for damage from fireworks; however, this is not always the case. Peter Kochenburger, executive director of the insurance law program at the University of Connecticut and deputy director of the university's Insurance Law Center, stated: "The very short answer is: Usually there's coverage. But it does depend on a number of details." Nevertheless, it is important to understand that coverage may not be guaranteed.
A standard homeowners insurance policy typically includes two areas of coverage. The first is for the property: the dwelling and its contents. The second one is for liability; this provides coverage if you are held accountable for causing injury or damage to another person's property as a result of an errant firework. Generally, your liability is covered anywhere within the United States. A renters policy is similar, but it does not cover the structure of the building; only the things inside of it. As per the most recent data from the National Fire Protection Association, fireworks resulted in direct property damages amounting to $59 million in 2021.
Robert Passmore, Vice President of Personal Lines at the American Property Casualty Insurance Association, a trade organization, noted that most damage due to fireworks is typically caused by a fire originating from the pyrotechnics. The NFPA reported that 12,264 fires in the United States in 2021 were attributed to fireworks, with 28% of fires occurring during the 4th of July period from 2014 to 2018. Passmore points out that homeowner's policies generally cover fire damage to the house, patio furniture and other property; however, policyholders are usually responsible for the first $500 to $1,000 of any damage. These stipulations are applicable, regardless of who lit the fireworks - be it the policyholder, a neighbor or a friend.
Passmore remarked that fires caused by fireworks occur annually and can be particularly problematic for those who live in places that are prone to wildfires. He emphasized that certain insurance policies also provide coverage for damage resulting from an out-of-control projectile, such as a broken window. The National Fire Protection Association (NFPA) has reported a shocking surge in fireworks-related injuries over the past decade and a half, with 10,200 injuries being documented in 2022 alone. If a policyholder is found to be legally responsible for an injury caused by fireworks, they can be covered by their liability insurance, experts explained.
In many cases, insurance policies have exclusions that can be found in the small print, highlighting situations where an insurer would not pay out a claim. According to Kochenburger, insurers are using more exclusions recently, and the specific details vary from policy to policy. Intentional damage caused by, say, shooting a bottle rocket at someone's house, would likely not be covered. In rare cases, there may also be policies that exclude coverage for fireworks.
In terms of fireworks-related insurance coverage, it could depend on the context, the type of fireworks, how they were used and how exclusions have been enforced by state courts, according to Kochenburger. Personal property protection is usually less affected by this exclusion than liability claims, he added. To avoid the possible issues associated with such exclusions, Kochenburger recommends sticking to fireworks that are legal in your state. "You don't want any surprises," he concluded.
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