Does homeowners insurance cover fireworks damage?

As long as the fireworks used were legal in your state, damage caused by fireworks, such as a fire, will usually be covered by homeowners insurance. Damage to your home is covered by the dwelling portion, while damage to your belongings is covered by your personal property coverage.

If your fireworks are responsible for damage or injuries to someone else, the liability portion of your insurance will cover the bills, up to your limits.

However, home insurance doesn’t cover damage to your car or injuries to you or your household members. Read on for more details on insurance for fireworks.

What happens if your house burns down due to fireworks?

If your home catches on fire from fireworks, your homeowners insurance policy will cover any property damage or destruction as long as you live in a state where fireworks are legal. Your dwelling coverage will take care of claims for damage to your own home.

While Massachusetts is the only state where fireworks are completely illegal, some states have very strict laws about fireworks — Illinois and Vermont being two of them. Each state differs in their fireworks laws and what type of fireworks are permitted, so you should check your local laws before setting any off.

If fireworks are illegal in your state, homeowners insurance will not cover the cost of repairing any damages. Some states require licenses to set off fireworks, and homeowners insurance will only cover damages if you obtained the license. 

According to the National Fire Protection Association, fireworks are responsible for an estimated 19,500 fires each year.

Does homeowners insurance cover fire damage to a neighbor’s property?

The liability coverage on your homeowners insurance will cover damage to a neighbor’s property due to fireworks you set off. Again, you will not have coverage if fireworks are illegal in your state.

The coverage includes damage to a neighbor’s house, other structures, car or any other property.

Does homeowners insurance cover injuries from fireworks?

Homeowners insurance covers injuries to others caused by legal fireworks set off by you. The liability portion of your homeowners insurance policy doesn’t only cover personal property — it will also cover any medical expenses if you set off fireworks that injure someone. It will also cover the legal fees if someone sues you because of their injuries.

In 2022, 11,500 people sustained injuries from fireworks that put them in the hospital — a decline in injuries from 2021. Most of these injuries happen during the Fourth of July holiday.

And while homeowners insurance will cover injuries your fireworks cause another person, it won’t cover injuries to you or another household member. You will need to seek coverage under your health insurance policy.

What if your car catches on fire from fireworks?

Your homeowners insurance will not cover damages to your car from fireworks. Fire damage to a vehicle would be covered under the comprehensive portion of your car insurance policy. This is optional coverage that you will have to add to your car insurance policy and is not included in a liability-only auto insurance policy. 

What if you exceed your home insurance limits?

It’s possible that the damages you caused others and the amount paid out by your liability coverage will exceed your homeowners insurance limits. If that happens, you can use coverage from an umbrella policy, if you have one. Umbrella coverage can be used when the liability limits of your home (or auto) policy are exceeded.

Anyone participating in dangerous activities that increase your chances of liability, such as setting off fireworks, should consider an umbrella policy.

How to stay safe when setting off fireworks

If you’re planning to host a Fourth of July party that involves dazzling your friends and neighbors with fireworks, do a bit of research. First, make certain you are obeying local laws. Fireworks are not legal in every state. Second, be aware of what your home insurance policy covers in the event of a fireworks-related accident. Most do, but every policy has its own exclusions so double-check yours.

Here are a few safety tips from the National Council on Fireworks Safety, American Pyrotechnics and the Insurance Information Institute.

• Obey the law. Don’t use fireworks that are illegal in your state.
• Keep your pets away from fireworks. Pets have sensitive hearing and the noise can hurt them or cause anxiety. They should also be in a safe space where they cannot run away in fear.
• Keep fireworks away from children. Make sure they are at least 30 feet away from where you are igniting fireworks. Even sparklers burn up to 2,000 degrees, making them extremely dangerous for children. Explain to children that fireworks are not toys and can cause the loss of a finger or hand.
• Be sure other adults and children are out of range before lighting fireworks. Never point fireworks at others.
• Always read and follow the directions for fireworks carefully.
• Use fireworks outdoors only.
• Use a flat, hard surface like a driveway. Avoid lighting fireworks on grass or in containers.
• Only use fireworks in an open area.
• Take it slow. Light only one at a time.
• Wear eye protection. Don’t put a body part near a lit firework.
• Don’t use malfunctioning items. Never attempt to relight a “dud.”
• Have a fire extinguisher, hose or bucket of water handy for emergencies. Drop used fireworks into a bucket of water.
• Alcohol and fireworks do not mix. Have a “designated shooter.”

Always use fireworks with caution. If damage or injury results from use, read over your policy and make a claim, but be aware it can lead to higher home insurance rates.

Penny Gusner contributed to this story.

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