I consider myself fortunate to reside close to Lake Carasaljo in Lakewood, New Jersey, where the Fourth of July fireworks display is held every year. This year, as my friend and I set out on our journey to the designated location, we were informed of a regrettable incident.
“I heard that someone living in the vicinity of Pamela Ct in Jackson, NJ experienced a loss due to fireworks set off earlier in the day,” my friend confided.
“What happened?” I asked.
“The homeowner that suffered the loss had a shed in her backyard that stored cans of paint,” continued my friend. It appears that a spark from the fireworks that a neighbor lit fell on the shed, igniting the flammable material, which then caused the shed it was housed in to explode.”
“Who will footnote: Who will footnote: Who will footnote: Who will footnote: The cost of I asked. “Will the responsible party have to pay out of pocket or the insurance company?”
“In case you don’t remember,” explained my friend, “individual use of fireworks is prohibited in the state. So, nobody came forward and accepted responsibility. An illegal activity is not covered by insurance, and judging by the lack of courage displayed by the responsible party, the shed owner will not be contacted.”
On the national holiday honoring America’s victory in independence, crowds had gathered to see the spectacular light show that had been set off by the professional pyrotechnics company. As we moved through the crowds to observe the show, the conversation came to an end in silence.
That evening I thought about the situation.
Because the homeowner who suffered the loss was an entirely innocent victim, it was highly likely that she would receive compensation from her own home insurance. In a similar vein, if the damage involved her car, she should be covered by her auto policy.
My understanding is that accidental fire damage from fireworks is covered in states where they are legal, even if the fireworks were set off from the homeowner’s driveway or lawn. The same is true for damages or injuries brought on by an accident brought on by faulty fireworks.
If the damage or injury was purposefully caused, there is only one exception in locations where single fireworks are allowed. These circumstances are not covered by standard homeowner’s insurance.
Even if your homeowners insurance covers a related event, there is still a problem: your policy’s limits will only be covered.
A personal umbrella policy is the other choice for people who decide they need more security. This type of coverage will begin to pay out once your home insurance reaches its limits and will give you additional protection so you won’t be stuck footing a sizable out-of-pocket expense.
Of course, using fireworks is illegal for anyone in the state of New Jersey. To any other event, however, the same idea can be used.
While you celebrate America’s Independence Day, be sure to enjoy your freedom of choice in insurance!
