These Holiday Activities Could Turn Into Serious Insurance Risks

‘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? In these next slides, we break down those holiday insurance risks and offer tips for ensuring you’re covered.

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. Love to play on your phone? These 22 legit games pay real money.

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 and dry or improperly watered Christmas trees. 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. This new tool from The Penny Hoarder can help you save $500 on car insurance.

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. 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. In the market for a new checking account? Here are The Penny Hoarder’s top picks.

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.  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. 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. Looking for new ways to save? Try one (or al!) of The Penny Hoarder’s top picks for money-saving apps.

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, carefully place decorations, clean cooking vents, exhaust fans, ducts and filters, maintain good lighting, keep walkways clear, maintain walkways and railings, keep an eye on live Christmas trees, check your fire extinguisher and secure your home with from burglars. 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. Play Santa without going broke with The Penny Hoarder’s holiday budget planner.