Homeowner's Extending Covg to Party?

Jul 17, 2015

  1. insurance1822
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    insurance1822 Guru

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    So we get this scenario where people are renting a local facility for a birthday party or whatever & the facility wants a "rider" on the homeowner's insurance to cover the event.

    1.) Does such a rider exist

    2.) How does liability on an HO-3 extend to situations like this

    3.) How could an insured end of liable where homeowner's insurance WOULDN'T cover it?

    4.) What the frick?:1mad:
     
  2. Heather
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    Heather Guru

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    Had a social hall want to do the same thing. Underwriting told me that the homeowners would not cover this nor was any such rider available on the policy. I solved the problem by selling them a 1-day special event policy with the venue listed as additional insured. I still don't understand how the social hall or venue could expect a rider. Why wouldn't their own insurance cover anything that could happen at a party or event, it still makes no sense to me at all.
     
    Heather, Jul 17, 2015
    #2
  3. hesse
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    hesse Guru

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    Host liquor liability extends but ive never had somebody ask to extend the PL
     
    hesse, Jul 17, 2015
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  4. djs
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    djs Super Moderator Moderator

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    I've done it a few times, though not recently. Some carriers will let you add the event location as an additional insured and then you increase the liability coverage to $1M. You go in after the event and take it back out.

    After doing this a few times, I realized the separate 1 day event policies were a better deal. Okay, they cost the client $50 or whatever, but it was much cleaner on the coverage side and you didn't have to worry about an underwriter trying to restate what they told you over the phone.

    Dan
     
    djs, Jul 17, 2015
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  5. mvinsurance
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    mvinsurance New Member

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    It's way easier to get a special event policy that most likely has a broader coverage as well.
     
  6. Soaringagent
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    Soaringagent Guru

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    The client is always told that they can purchase a rider... it's really annoying when they come to you asking for a rider.
     
  7. jkearns
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    jkearns Expert

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    Very annoying when they ask for it, but I love selling 1-day event policies!
     
    jkearns, Aug 3, 2015
    #7
  8. Soaringagent
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    Soaringagent Guru

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    What do you love about selling them?
     
  9. BigIVU
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    BigIVU Super Genius

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    The ISO HO policies extend liability to such a rental as an "insured location." There is also contractual liability for the assumption of the owner's tort liability to third parties. The biggest problem is that there is almost no coverage for damage to the facility itself other than by fire, smoke or explosion.
     
    BigIVU, Aug 4, 2015
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