‘Tis the season to trim the tree, bake gingerbread cookies and head out of town to visit relatives. But if you’re a homeowner, all three of those things put you at risk. You have homeowners insurance to protect you year-round, but is your coverage enough to get you through the holidays?
Below, we break down those holiday insurance risks and offer tips for ensuring you’re covered.
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Holiday Insurance Risks to Look Out For
You’ll find plenty of holiday safety tips as we enter the holiday season. However, as important as those tips are, they don’t address the financial risks. Peter Piotrowski, Chief Claims Officer at Hippo Insurance, lists the top three risks homeowners face during the holiday season.
1. Cooking Mishaps and Fires
December is the top month for home fires, with Christmas trees, holiday directions and festive meals being the leading culprits. Piotrowski lists the following fire risks that homeowners face during the most festive month of the year.
- Overloaded electrical outlets
- Flammable decorations near open flames
- Clogged cooking vents
- Dry or improperly watered Christmas trees
Cooking is a common cause of house fires, and many kitchens see an increase in use during the holiday season. From Thanksgiving turkey to Christmas candies and cookies, your cooking appliances will likely be working overtime in the final weeks of the year. That creates a homeowners insurance risk. For that reason, Piotrowski stresses the dangers of clogged cooking vents.
“When you cook, especially when frying or sautéing, grease and cooking oils are released into the air as tiny particles,” he explains. “Over time, these particles can accumulate in the exhaust system, including the vents, ducts and filters. This buildup is highly flammable.”
Even if a fire is contained, smoke damage can require hours of expensive cleanup. According to Angi’s List, the average cost of home fire restoration is $4.70 per square foot. If your fire is localized to the kitchen, restoration could just be a few hundred dollars. But for a fire that spreads throughout your house, you may spend tens of thousands of dollars, assuming the home can be salvaged.
To be safe, make sure your fire coverage can handle the full cost of rebuilding your home plus the cost to replace your personal belongings. As a general rule, this is 50 to 70% of your dwelling coverage. An inventory of your belongings can help you make sure you’re properly covered.
2. Property Liability
Will you be inviting guests into your house this holiday season? Even if it’s only family and trusted friends, a serious injury on your property can lead to an insurance claim. The injured person’s insurance company may come after you to pay for medical bills, pain and suffering, lost wages and other expenses related to the incident. For that reason, Piotrowski recommends taking a look at your homeowners coverage.
“Standard homeowners policies include personal liability, but it’s wise to verify your coverage level before holiday entertaining,” he said. “Liability insurance provides financial protection if someone gets hurt on your property, covering expenses like medical bills and legal fees.”
As you’re reviewing your policy declarations, Piotrowski recommends making sure you have two types of liability coverage:
- Coverage E: Liability coverage for legal fees and damages the homeowner is liable for.
- Coverage F: Medical payments for related expenses under standard HO3 policies.
Most homeowners insurance policies offer liability coverage with a limit of $100,000, $300,000 or $500,000. You should consider your own net worth and choose the limit that best protects your assets against a lawsuit.
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3. Theft and Vandalism
Criminals don’t take a break during the holiday season. In fact, burglaries spike during the final weeks of the year. Homeowners are often away at gatherings, leaving valuable gifts unattended under the tree.
“Many families travel for the holidays, leaving their homes vacant,” Piotrowski said. “Others who host holiday events may also become less guarded due to festivities. Valuable gifts are a prize for burglars, and the holidays are filled with them.”
Piotrowski also highlights porch pirates as an issue during the holiday season. Unattended packages can invite thieves to your front door. Additionally, all those outdoor decorations can paint a giant target on your home.
“Homes are even more lit during the holidays, causing better outside visibility of a home’s interior,” he cautions. “This gives burglars a clear view of valuables and an incentive to target a home.”
Finally, the holiday season typically brings an increase in vandalism. Night falls earlier, giving criminals extra time to do their dirty work. Homeowners insurance covers vandalism, although your deductible might be too high to make it worth filing a claim.
For theft coverage, don’t just consider the cost of the gifts under your tree. You’ll want to make sure your belongings would be covered. As with fire damage, your personal property coverage should be 50 to 70% of your dwelling coverage. You’ll also want to check your deductibles to ensure you’re comfortable with your out-of-pocket costs.
Reducing Your Holiday Homeowners Insurance Risks
Once you’ve reviewed your homeowners insurance policy, take some time to reduce your risks. These holiday safety tips from Piotrowski can help.
- Don’t overload outlets. Spread out your device usage and make sure you use surge protectors when necessary.
- Carefully place decorations. Make sure your decorations are a safe distance from any flames or heat sources. Also take care that candles are placed in stable holders on nonflammable surfaces and are a safe distance from flammable materials like curtains and tablecloths.
- Clean cooking vents, exhaust fans, ducts and filters. Piotrowski recommends doing this every 1-3 months, or 3-6 months if you don’t cook very often.
- Good lighting. Even if you have Christmas lights, make sure all walking paths are well lit to avoid guests tripping. Good lighting has the added benefit of deterring burglars.
- Don’t block walkways. Check all of your decorations and their cords to make sure they don’t create a trip-and-fall hazard. You should also make sure all decorations are well secured so that they don’t fall and block walking paths.
- Maintain walkways and railings. Before guests arrive, check all walking paths and porch railings to make sure they’re secure and safe.
- Keep an eye on live trees. Dry pine needles can become a fire risk. Piotrowski recommends keeping live trees in water-filled stands and checking the water level daily.
- Check your fire extinguisher. Inspect the pressure gauge and confirm the pressure needle is in the green zone. If the needle is in the red zone, it’s time to replace it.
- Secure your home. A professionally monitored home security system can help keep burglars and vandals away.
The holidays are a time to celebrate, but it’s also important to be diligent. By staying on top of holiday insurance risks, you can also keep your home and its occupants safer to ensure a happy New Year.
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Stephanie Faris is a professional finance writer with more than a decade of experience. Her work has been featured on a variety of top finance sites, including Money Under 30, GoBankingRates, Retirable, Sapling and Sifter.