According to the National Fire Protection Association, fireworks caused a staggering $59 million in direct property damage in 2021. Homeowners and renters insurance policies can provide coverage for property damage and liability in such incidents. However, there are exceptions, and it’s crucial to be aware of potential exclusions that might deny claims, especially when it comes to illegal fireworks.

Generally, homeowners insurance covers two main areas: property damage (including the home and its contents) and liability, which extends to situations where you may be responsible for injury or property damage to others, such as a neighbor harmed by a stray firework. Renters insurance works similarly but doesn’t cover the physical structure of the home, only the belongings inside.

The most common type of fireworks-related damage results from fires caused by pyrotechnics. Homeowners policies usually cover fire damage to the house and property, including patio furniture, with deductibles typically ranging from $500 to $1,000.

It’s essential to note that coverage extends not only to the policyholder igniting the fireworks but also to cases where someone else, like a neighbor or friend, causes the damage. However, fireworks-related claims can lead to significant problems, especially for those residing in wildfire-prone areas.

While injuries from fireworks have been on the rise, with 10,200 reported in 2022, liability insurance may offer protection if the policyholder is legally liable for such injuries.

Keep in mind that insurance policies often come with exclusions, specifying instances where the insurer won’t pay a claim. These exclusions have become more prevalent, and details can vary from one policy to another. For example, intentional damage or acts, as well as damage caused by illegal fireworks, may not be covered.

The specifics of coverage will depend on various factors, including the type of fireworks used, the circumstances surrounding their use, and how state courts interpret policy exclusions. It’s important to understand these details to avoid surprises when making claims.

To mitigate risks, always use legal fireworks and ensure they comply with your state’s regulations. By doing so, you can avoid potential issues related to wrongful or criminal acts and ensure you’re protected under your insurance policy.