Fireworks InsuranceIt seemed like a good idea at the time. Bought a few fireworks and set them off in the backyard during the picnic. One errant bottle rocket later and your neighbor’s roof was on fire. Uh oh.

Once the fire was out, you called your homeowner’s insurance company. That’s when you got the bad news – the damage is not covered by your insurance policy. What? “It was an accident,” you think. “I didn’t mean to set his house on fire!” But your insurance company is firm on this one. You aren’t covered and you’re paying for that new roof yourself.

Every insurance policy is different, but there’s a good chance your fireworks-related claims could be denied. Here are some reasons why:

Fireworks are illegal in your state. All insurance policies exclude coverage for claims stemming from illegal activities. If you’re setting off fireworks in your backyard in say Pennsylvania, you’re breaking the law. Most states allow the use of sparklers, but a few including New York, New Jersey, Delaware and Massachusetts don’t unless you have local approval. If you’re not sure, check with your state and local authorities. For a list of state legal requirements pertaining to fireworks by state, look here.

You were aiming for the house. Even in those seemingly innocent “Hey, let’s see if we can scare Fred” moments, your actions matter. If you show any intent to harm someone or damage someone else’s property, your insurance claim will be denied. So if you “accidentally” aim that firecracker at that run-down storage shed you’ve been meaning to get rid of, don’t even think about filing a claim. Besides, lying about the cause of any claim is insurance fraud.

You made those fireworks in the basement and now Fred’s minus a few fingers. Unless you’re a licensed manufacturer of pyrotechnics, you cannot attempt to make them. Likewise if someone is hurt or your “laboratory” goes up in flame, your claim isn’t even going to be considered valid.

You burned down the entire block. Even if your homeowner’s insurance policy does cover your claim, every policy has stated limits. If you cause over $3 million in damages, for example, there’s a good chance that claim is going to far exceed your coverage limits, especially since the typical homeowner’s insurance policy provides up to $1 million maximum in coverage.

Before you decide to put on your homemade fireworks display this year, review your homeowner’s insurance policy with your insurance company or broker. Also, make sure you follow all state and local laws regarding fireworks possession and use. If fireworks are legal in your state, use common sense around firework use to keep your guests, your property, and your neighborhood safe.

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