The words ‘insurance’ and ‘party’ rarely appear together in the same sentence (unless of course, the latter appears between the words ‘third-’ and ‘fire & theft’). However, a number of recent cases have illustrated how the consequences can be catastrophic for those homeowners who do not make the connection, in the case of parties at both ends of the spectrum.

 

A recent survey by Sainsbury’s has found that parents in the UK pay out just under £17 million a year for damage caused to their homes by their teenage children's parties, nearly a tenth of which are held without permission. Such damage has reached new heights in the new wave of so-called ‘Myspace Parties’, publicised to hundreds, even thousands, of other youngsters on internet networking sites. In perhaps the most high-profile example, police arrested 17-yr-old Rachael Bell of Co. Durham after she hosted a party in which revellers from all over the country did over £20,000 worth of damage to her parents’ home.

 

To compound the anguish of parents who have returned to find their homes ransacked by unruly teens and their friends, as doubts have been raised about whether home insurance providers will cover the full costs of such claims. While malicious damage is covered by the majority of home insurance policies, many contain clauses which require policyholders to take due care to protect their property. In inviting large numbers of gatecrashers, teenage children may be putting their parents’ policies at risk of invalidation. As Nikki Bolton of Esure puts it: “House party guests must be known to you - they cannot be random people off the street.”

 

In an article for financial website, thisismoney.co.uk, James Coney suggests that if the party is held without parents’ knowledge, insurance claims for damage may still be honoured. However, in what is still an emerging area where there are not, as yet, clear precedents on all such details, consumers are advised to check with their insurance provider if unsure about the details of their cover.

 

At the other end of the spectrum, even on a bouncy castle some parents have had to find out the hard way the heavy costs of inadequate insurance cover for children’s parties. Timothy and Catherine Perry, from Kent, found themselves facing a £1m compensation claim, after a 13-yr-old boy suffered a broken skull in a collision with another child on an inflatable castle at a birthday party for the couple’s triplets. While the severity of this case is rare, statistics from the Royal Society for the Prevention of Accidents show that more than 4,000 children under the age of 15 were injured on bouncy castles last year.

 

For larger events specialist insurers, such as eventsinsurance.co.uk or over 50s home insurance providers Rias – who cater for the older crowd -  can provide one-off policies from parties to plays. However, in most cases, the advice of Jim Bruce from Tesco Home Insurance should suffice: “When hiring any items for informal social events or functions to be held at the home, we recommend that people always contact their home insurance provider beforehand to discuss the specifics of hire and to ensure that they understand what their policy covers them for in the unlikely event of an unfortunate incident."