The holidays are always a fun time of the year but also seems to be full of mishaps as evident in all the Christmas comedy movies. I don't think any insurance professional can watch National Lampoon's Christmas Vacation without thinking about the different claims scenarios which could arise from each slapstick incident: Whilst humorous, if these events actually happened in our homes, hopefully a homeowner's insurance policy could save Christmas.
In the movie, Clark Griswold slipped and fell on his roof while assembling Christmas lights, accidentally causing a lance of ice to fly from his gutter through a neighbor's window and into their house, damaging their stereo system. The neighbors could make a claim against the public liability section of the Griswold's homeowner's policy to pay for the damage to their window and stereo.
Likewise in the film, when the Christmas tree burst into flames and destroyed all of the presents under it, the property section of the homeowner's insurance would have responded to compensate the Griswolds for their loss if they had homeowners contents included in the policy.
What would not be covered under the homeowner's policy is the damage caused to the Griswolds' family china by their cousin Eddie's dog chasing a squirrel in the dining room. Damage caused to your home building or contents by your pet is excluded from most homeowner's insurance policies.
Further to the movie scenarios, this Christmas I was regaled with a true story of two friends having to evacuate their hotel room during an early morning fire alarm. Once the concerns for their personal safety had passed, the second largest concern was for the security of their belongings as they had been Christmas shopping in Florida. Whereas some homeowners' insurance policies will cover the "temporary removal" of household contents while away on a trip, this is only limited to personal belongings up to a certain percentage of say 15 percent of the sum insured on your homeowner's policy.
Theoretically, a Christmas gift being transported home accompanied by the insured would be acceptable to insurers and covered under the homeowner's contents policy. However, depending on the scale of shopping, that is if you have to make a stop to Betty K on the way to the airport, this type of risk would be considered outside the acceptable boundaries and you would be better off getting a goods-in-transit policy to cover the transportation of the items.
New Year's Eve also has its own set of risks: Aside from the property and fire risks associated with stray fireworks, the big concern on New Year's Eve is road safety and event liability. Depending on the size of the New Year's Day party you are hosting, you may need a special event liability insurance policy to protect you from the financial burden if a guest is injured at the event and wants to claim for their medical expenses or other damages. Your regular homeowner's policy may not cover this, especially if you have let out your property to an event promoter and are charging an entrance fee.
Another big concern is road safety. One way to offset risk is to arrange taxis or a bus for your guests or nominate designated drivers at least. Otherwise, plan to offer guests a place to sleep in your home if necessary. Of course the best preventative measure is to offer non-alcoholic drinks to guests and monitor guests who are drinking.
It's not only alcohol that can cause traffic accidents. Frightened pets may run into the road during fireworks and cause an accident for which you could potentially be liable if you didn't secure your dog. Also, frightened dogs may also bite your guests while on your property, so make sure they are secured on New Year's Eve.
Whereas taking out an insurance policy is a method of risk management, the best tool for avoiding an accidental loss over the holidays is careful planning and good housekeeping practices.

o Stephanie Cleare is a fully licensed and qualified account executive at Tavares & Higgs Insurance with 12 years experience in the Bahamian insurance industry. Email her at scleare@tavareshiggs.com.

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