FOR IMMEDIATE RELEASE
June 24, 2003
FOR MORE INFORMATION, CONTACT:
Jennifer May, PIIAI Industry Affairs Coordinator
(217) 793-6660 or jmay@piiai.org
Are You Prepared for Upcoming Fourth of July Celebrations?
Even though you have purchased fireworks and obtained a permit, you may not be prepared for the upcoming July 4th holiday. The Professional Independent Insurance Agents of Illinois (PIIAI) advises consumers to check their homeowners and personal umbrella policies to see what type of insurance coverage they have and in what situations it would provide coverage. Homeowners should also reduce the risk of fireworks-related accidents by taking basic precautionary measures.
While many homeowners assume they are covered for any type of accident that occurs around their home, coverage for a fireworks accident depends on the circumstances surrounding the incident. Many insurance companies will not pay a fireworks-related claim if:
· You have a state, county or municipal law/ordinance outlawing fireworks
or allowing only professionals to operate them.
· Your area prohibits the type of rockets used in the incident. Whether
or not you purchased the fireworks legally elsewhere, the insurance company
will not pay.
· Your local law/ordinance requires a permit and you do not have one.
Insurance companies will not pay for damage if you have violated the law or if circumstances could not be deemed accidental. A scenario in which some firecrackers in your home were set off when they were placed too near the barbecue would be accidental. If your teenager set a firecracker off on purpose, the certainty of coverage is far less clear and less likely.
In general, the homeowners' responsibilities include maintaining a safe environment in their home. The kinds of things that will be considered by the company evaluating a claim are the nature of the fireworks being used compared to the age, maturity and experience of the users; physical and pyrotechnic safety precautions that were taken; the physical surroundings of where they were used; and weather conditions.
If you drove to a field with good vertical and horizontal clearance, observed common sense safety rules, set off the fireworks in good weather conditions, but still caused some damage, your insurance will most likely cover the costs. However, the PIIAI strongly encourages people to stay away from do-it-yourself fireworks shows. For your safety, and for the safety of friends and family, it's best to avoid the risk.
If the at-fault homeowner has a personal umbrella, there may be coverage for
the damage even if the underlying policy won't cover it. Again, this all depends
on the policy language. So it is important to consult your insurance agent.
If you are a renter and don't have homeowners insurance or renters insurance your neighbors' insurance may pay for damage you cause to their property, depending on the type of homeowners' coverage they have. If paid, it would fall under the property damage portions of the policy, and would be subject to a deductible. But the insurance company making the payment to the not-at-fault homeowner would still subrogate the at-fault parties for the damage. This could include responsibility for the cost of having the municipality put out a fire or other related expenses, and the damaged party could sue for the amount of the deductible.
The only way to be sure you're covered is to call your independent insurance agent before using fireworks. He or she will want to know your safety plan for using the fireworks. Even then, these kinds of homeowners claims are borderline at best because they constitute acts that materially increase the potential hazards of the insureds. Homeowners policies generally state that it is the insured's responsibility to never knowingly increase the hazard to loss.
Sidebar:
Each year, thousands of people are treated for fireworks-related injuries--most often burns to the hands or face and lacerations or foreign bodies in the eyes.
Injuries are often a result of unexpected fireworks explosions or flight paths, or inappropriate use of fireworks by children.
To guard against these injuries, the PIIAI offers the following Fourth of July safety tips:
1. Make sure an adult is present and in charge at all times.
2. Wear safety goggles when lighting fireworks.
3. Purchase legal fireworks from a reliable seller.
4. Be sure to have water on hand for emergency use.
5. Do not attempt to light off more than one firework at a time.
6. Always read and follow label instructions.
7. Never pick up or re-light a firework that appears to be a dud.
8. Never throw or point fireworks at people, vehicles, buildings, etc.
9. Do not light fireworks in glass or metal containers.
10. Dispose of used fireworks by soaking them in water before putting them in
the trash.
The Professional Independent Insurance Agents of Illinois is an association representing independent insurance agents throughout the state. PIIAI membership is comprised of 1,500 insurance agencies representing 12,000 licensed independent agents engaged in all facets of the insurance industry, including property, casualty, life and health. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. In addition to serving the professional needs of members, PIIAI works for the betterment of the insurance industry through legislative and consumer awareness programs. The PIIAI is headquartered in Springfield, Illinois. Visit PIIAI's consumer website at www.ChooseIndependent.com or agent website at www.piiai.org.
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