Does Insurance Cover Fireworks Damage?

Summary

• Fireworks can lead to significant risks, including property damage, personal injury and legal consequences; safety precautions and adherence to state laws are essential to minimize accidents.
• Homeowners insurance often provides coverage for fireworks-related damages under specific scenarios, such as property damage or liability for injuries, but reckless use or illegal fireworks are typically excluded.
• To ensure additional protection, consider umbrella insurance for more liability coverage, and always verify your policy limits and exclusions to avoid unexpected expenses.

We Americans love our celebrations, and if you think certain events aren’t complete without the excitement of some fireworks, you’re not alone. Weddings, sports wins, the arrival of the new year and, of course, the Fourth of July are all occasions that prompt revelers to punctuate their fun with the controlled chaos of fireworks. But when things go wrong, people and property sometimes fall victim. So, whether you’re the one setting off the fireworks or you’re just a spectator, here’s what to know about the role insurance plays in cases of property damage or personal injury caused by fireworks.

Unintended consequences

According to the National Fire Protection Association, 2022 saw 31,302 fires caused by fireworks. In addition to 418 fires that went unclassified, there were structural fires (3,504), vehicle fires (887) and outside fires (26,492), all resulting in a whopping $109M of property damage. Even worse, personal injuries from fireworks led to 10,200 emergency room visits. Of those injuries, 29% were to hands and fingers and 35% were to eyes, face or other parts of the head. Perhaps most surprisingly, the National Safety Council, a leading nonprofit safety advocate, reports that nearly half of the fireworks injuries to children under 5 years of age are caused by sparklers, which burn at extremely high temperatures and tend to be much more dangerous than people think.

Know the laws

Individual states regulate the sale and use of consumer-grade fireworks, and those laws vary. Some ban all consumer fireworks; others prohibit certain types of fireworks, such as ones that launch into the air or explode; while still others permit most consumer fireworks. Before making any purchases or planning any displays, consult this national list of state laws regarding what is legal for consumer use where you live. It’s important to follow your state’s laws, because the legality of the fireworks—as well as their responsible use—will play a role in the consequences of any mishap.

Fireworks insurance?

While damage or injury from fireworks can happen despite your best efforts, insurance can play a role in helping protect you from the costs associated when a loss occurs. If you’re wondering, “How much does fireworks insurance cost?” you’ll be happy to learn that as a homeowner you’ve likely got some protection already in place. That’s because there are many times when homeowner’s insurance could cover fireworks damage. Here are a few scenarios.

• You unintentionally cause property damage with your fireworks.
  If your own home is damaged by your fireworks and there are no third parties involved, you’ll need to file a claim against your homeowner’s insurance policy. If you damage a neighbor’s home, automobile or other property, your liability coverage will likely cover the cost to repair or replace the property.
• Someone else’s fireworks damage your property.
  If your home or car takes damage from fireworks and you know who was responsible, the liability portion of that person’s home insurance policy likely will cover the damages. If the damage is to your car and you’re unable to determine who is responsible, your comprehensive car insurance can cover the fireworks damage. If the damage is to your home and you’re unable to identify who was responsible, your homeowner’s insurance policy may apply.
• You’re injured by your neighbor’s fireworks.
  If you incur medical expenses or suffer lost wages due to fireworks set off by your neighbor, you’ll need to file a claim against the bodily injury liability portion of their homeowner’s policy.
• You or members of your household are injured by your own fireworks.
  Your home insurance will not generally cover injuries sustained by household members; instead, costs of medical treatment will need to be filed with your health insurance.
• Your fireworks injure a neighbor or bystander.
  If they incur medical expenses or suffer lost wages due to fireworks set off by you, they'll need to file against the bodily injury liability portion of your homeowner's policy.
• You’re injured at a professional fireworks display.
  Since public events with professional pyrotechnics displays will almost always be licensed, mishaps will generally be covered by professional firework event insurance (something typically not available to consumers or unlicensed individuals).

Important exceptions

Although the above examples show situations where insurance can help cover damages, there are specific circumstances that can disqualify fireworks-related claims. Most insurance policies will not cover damages caused by fireworks that are prohibited in your state. The same goes for injury or damage caused by reckless use, gross negligence or intentional damage. 

Consider an umbrella

Be sure to check your policy to determine the limits you have in place and to identify any exclusions to your coverage. If a fireworks mishap causes losses that exceed the limits on your homeowner’s insurance policy, you could be left paying the difference. An umbrella insurance policy could give you added liability protection.

Safety first

Although the advice of The National Safety Council is to leave the lighting of fireworks to the professionals, their list of safety tips is a must-read for anyone considering using legal fireworks.