Party hosts, resolve to check your insurance policies

It's party season, and with New Year's Eve looming large on the calendar the Insurance Journal today advises renters and homeowners alike to check their insurance policies if they are among the nation's 28.5 million holiday party hosts.

The Journal cites a Trusted Choice study which found that most party hosts are underinsured and therefore open to financial ruin should the worst happen.

The article quotes Madelyn Flannagan of Trusted Choice: "If you host a party and your over-served guest drives away and gets in an accident, you can be held responsible."

Adding a personal umbrella policy to standard homeowner's or renter's insurance, which can provide a policy-holder with an extra $1 million or more in liability coverage, may be something to consider. Umbrella policies are typically priced at around $150 a year.

Flannagan says, "People don't buy umbrella policies because they think they have enough coverage from their homeowner and auto policies -- but they don't. The high dollar value of jury awards coupled with skyrocketing health care costs means one lawsuit can easily exceed the liability limits on the average policy."

Meanwhile, if you are a renter who doesn't have an insurance policy at all, Kiplinger's Personal Finance urges renters to take that step and protect themselves and their belongings. The magazine includes obtaining renter's insurance as one of its Five Financial Resolutions for Young Adults, published today.