Fireworks harm $59 million in property annually. Insurance may cover it

In most cases, renters or homeowners’ insurance policies will provide coverage for fireworks-related damage, although it depends on specific details and policy exclusions. Typically, homeowners insurance has two coverage areas: property coverage for the home and its contents, and liability coverage for injuries or property damage to others. Renters insurance covers personal belongings but not the physical structure of the rented home.

Fireworks can cause significant property damage, with direct property damage amounting to $59 million in 2021, according to the National Fire Protection Association. Most fireworks-related damage results from fires started by the pyrotechnics. Homeowners’ policies generally cover fire damage to the house, property, and belongings, with policyholders responsible for deductibles, usually ranging from $500 to $1,000.

The coverage applies regardless of whether the policyholder or someone else ignites the fireworks. Damage beyond fire, such as broken windows from errant projectiles, may also be covered. However, there are exceptions and exclusions in insurance policies. Intentional acts and damage caused by illegal fireworks may not be covered. Exclusions for “wrongful or criminal acts” could mean that insurance wouldn’t pay for damage or injuries resulting from illegal fireworks.

The specific coverage and exclusions depend on the circumstances, type of fireworks, and how policy exclusions have been interpreted by state courts. It’s important to use legal fireworks and ensure compliance with local regulations to avoid the risk of being excluded from coverage.

Overall, while there is usually coverage for fireworks-related damage, it’s crucial to review the details of your insurance policy and understand the exclusions to ensure proper coverage and avoid any potential pitfalls.