Homeowner's Extending Covg to Party?

insurance1822

Guru
1000 Post Club
1,581
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:
 
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.
 
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
 
The client is always told that they can purchase a rider... it's really annoying when they come to you asking for a rider.
 
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.
 
Back
Top