How Halloween, Thanksgiving, Christmas risks affect home insurance

By Finance News On Nov 1, 2024

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Halloween trick-or-treaters and jack-o-lanterns can be downright scary — for your homeowners insurance policy.

There is a 14% jump in homeowners insurance claims on Halloween compared to other days of the year, according to Travelers Insurance. Theft on premises claims jump 46%.

Trips or falls, thefts, fire and pet-related accidents are among the insurance perils of All Hallows’ Eve.

“Not all of those types of things result in a claim, but can certainly occur throughout the night,” said Angi Orbann, vice president of property and personal insurance product management at Travelers Insurance.

Scarier yet, Halloween is just the kickoff night for some of those risks, which persist throughout the holiday season as you increase foot traffic in your house.

“The two issues are fire and liability, basically,” said Loretta Worters, a spokeswoman for the Insurance Information Institute.

The average homeowners loss caused by fire and lightning costs $83,991, according to Insurance Information Institute based on claims from 2018 to 2022. Over the same time period, the average cost of bodily injury and property damage liability claims was $31,690.

With all the festivities that happen around Halloween and the trick-or-treaters … think about the safety of the pathways and the accessibility of your home.

Angi Orbann

vice president of property and personal insurance product management at Travelers Insurance

How such claims affect your policy cost will depend on the number of claims you’ve made in a year, the type of issue, where you live and the extent of the damage, experts say.

“Be aware that there could be a surcharge based on the claim in the following year,” Orbann said.

If you haven’t yet, add these three steps to your to-do list to avoid hazards tonight and throughout the rest of the year:

1. Minimize dangers for visitors

Homeowners should minimize the dangers for visitors in pathways and entrances, “especially when it can be dark and it’s hard to see,” Orbann explained.

“With all the festivities that happen around Halloween and the trick-or-treaters, it’s important to think about the safety of the pathways and the accessibility of your home,” Orbann said.

Make sure the pathways are clear and “everything is very well lit,” she said.

If it snows, shovel and clear your pathway so partygoers, carolers and other holiday visitors have a clear walkway, said Worters.

Be mindful of other celebration-related risks. If you’re hosting a house party with alcohol involved, you may risk liability for injuries or property damage from an inebriated guest, Worters added.

“If you see somebody who’s had too much to drink, don’t let them drive,” Worters said, and consider other measures like limiting alcohol and encouraging…