Fourth of July: Warn Homeowners About These 3 Risks

• July 2, 2025

By Rachel Switchenko

For many across the U.S., Fourth of July celebrations involve grilling, fireworks and outdoor gatherings. But behind the red, white and blue is a spike in risk.

With 66% of Americans planning to grill and 44% planning to use fireworks, according to the National Retail Federation, a surge in insurance claims tied to fires, accidents and injuries is bound to happen.

However, these aren’t just minor mishaps. In 2022, firework-related injuries resulted in $109 million in direct property damage, according to the United States Consumer Product Safety Commission (CPSC), while grill fires resulted in $149 million in property damage per year from 2014 to 2018, according to the National Fire Protection Association (NFPA).

That’s where independent agents come in. Agents who understand their clients’ lifestyles and coverage can make a real difference by proactively reaching out before the holiday weekend. A timely reminder to your customers can invite a conversation that uncovers overlooked exposures, recommends key policy adjustments and helps clients avoid a celebration that ends in injury and a costly claim.

Here are three Fourth of July risks to warn clients about:

1) Firework safety. In states across the U.S., consumer fireworks are largely restricted or outright banned. Even in places where certain fireworks are permitted, local ordinances can vary. Your clients must understand the legal landscape, as well as the potential safety and liability risks.

If a guest is injured while using fireworks on a homeowner’s property—even if the fireworks were legally purchased—the host could be held liable. While homeowners insurance includes some liability and often medical coverage, the specifics matter. Encourage clients to check their policy limits and exclusions ahead of any holiday kick-off.

2) Host liquor liability. The Fourth of July consistently ranks among the deadliest days for drunk driving. Between 2019 and 2023, nearly 3,000 people were killed in crashes during the July 4th holiday period and 40% of drivers killed were drunk, according to the National Highway Safety Administration (NHSA).

For clients hosting parties, this isn’t just a sobering statistic—it’s a huge liability concern. If a guest becomes intoxicated and causes an accident after leaving the party, the homeowner could be held legally and financially responsible for any resulting injuries, property damage or worse.

While some homeowners policies can offer limited coverage for alcohol-related incidents, it often isn’t enough to fully protect against legal or medical expenses stemming from a serious accident.

An umbrella policy provides a higher level of protection for the party host’s assets and is a smart move for any homeowner.  It’s an even smarter move for any client planning large gatherings or hosting in spaces with added risk, like pools, trampolines or open flames.

By recommending an umbrella policy, agents can have some peace of mind knowing that their clients will be protected if they are held responsible for injuries or damage to others while hosting a Fourth of July party.

3) Barbecue blunders. July is the peak month for grill fires, accounting for 18% of incidents, according to the NFPA. Most are caused by malfunctioning gas grills, lack of cleaning or unattended flames.

If a guest is injured or property is damaged during a grilling incident, the homeowner could face substantial medical or repair bills. By providing coverage reviews in advance of summer holidays, agents can help clients understand what their policy covers—and what it doesn’t.

However, not all parties happen at home. If a client plans to host a cookout in a public park, the liability landscape changes. Depending on the homeowner’s policy, coverage may not extend to public property. Local ordinances may also require permits or prohibit alcohol use, grills or fireworks. Clients should understand what risks they’re assuming and verify whether their policy provides any protection off-premises.

By proactively reaching out to clients with reminders around moments in time, like Fourth of July hazards, independent insurance agents can strengthen relationships and reinforce their value.

To support clients during the holiday, consider sending out a quick coverage review checklist ahead of the Fourth—remember, that’s tomorrow—to prompt policyholders to consider potential gaps and local laws.

Rachel Switchenko is vice president of customer solutions at Plymouth Rock Home Assurance.