Celebrating the 4th of July: Your Guide to Smart Insurance Coverage for a Safe & Fun Holiday
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How to Enjoy Independence Day Without Financial Fireworks
America is once again welcoming one of its most widely celebrated national holidays on Friday, July 4th, and many will be looking to make the most out of their holiday weekends.
According to AAA, 72.2 million people will travel at least 50 miles or more from home over the Independence Day holiday period from Saturday, June 28, to Sunday, July 6. While the numbers aren’t in yet, Americans spent $9.4 billion on Independence Day in 2024, and there’s no reason to believe 2025’s spending won’t match or even clear that figure, especially given that Independence Day falls on a Friday this year.
Yet there are plenty of insurance-related risks to cover that could dampen the holiday, that, left unaddressed, could blow up household bank accounts. Backyard barbecues, nighttime fireworks, road and air travel all weekend long are just some of the insurable risks Americans will need covered before the Independence Day holiday rolls in. What are the biggest risks and the best insurance coverage moves for July 4th celebrants?
Here’s an inside look.
4th of July Travel insurance Needs
With over 72 million Americans hitting the open road (and skies) over the Independence Day holiday, travel insurance isn’t a luxury – it’s a necessity. Here’s a rundown of coverage recommendations:
– Cancel for any reason policies
. Start with a cancel for any reason benefit included in any travel insurance policy.
“Whether your 4th of July trip is over the road, by train, plane or cruise, a cancel for any reason benefit allows you to get non-refundable costs back, including trip interruptions and delays, illness and injury coverage if you are 100-plus miles from home,” said Andrew Jernigan, CEO at Insured Nomads in Philadelphia, Pa.
– Baggage and personal property insurance.
If you’re traveling with valuables in your bag (even cosmetic products like a really expensive hair dryer), you may want to consider additional travel insurance with a higher limit. “These policies are often offered at checkout on many third-party booking apps,” said Ted Patestos, CEO of Tiger Adjusters in Houston, Tx. “It’s also a great practice to take some photos of those items in case they’re lost, so make a future claim easier to process and avoid being questioned about submitting for items the carrier may feel are unusual.”
– When driving during the holiday weekend
Drivers should verify their car insurance policy before packing and getting ready to hit the road.
“For road trips, your standard auto insurance might not be enough; it’s recommended that drivers have specific coverage,” said Howard Goldberg, vice president of customer solutions at Plymouth Rock Insurance in Norton Center, Mass.
Goldberg recommends having collision and comprehensive coverage before backing out of the driveway on the July 4th weekend. “That’s crucial for getting back on the road quickly after an accident,” he said. “Most covered situations in which your car is damaged by a crash with a stationary object, or another car, will be handled by the collision portion of your auto insurance. However, any damage you may cause to someone else’s car is usually covered by the property damage portion of your liability coverage.”
Comprehensive coverage protects against non-collision risks like theft, vandalism, or weather damage. “That provides an added layer of comfort,” he noted.
Roadside insurance is a must, too, especially for the holidays when you may be hundreds of miles away from home. “A flat tire or dead battery miles away from home can be a real headache,” Goldberg said. “With roadside assistance coverage, drivers can ensure they have an extra layer of protection no matter how many miles away or the nature of the emergency.
Road Travel Preparation
Good auto insurance is always needed, whether for holiday travel or now. On the July 4th front, auto insurance consumers can mitigate or even avoid having to make a claim before leaving home.
Before heading out, inspecting tires, brakes, lights, and fluids is important to help prevent mechanical issues during your trip. “Packing safely, by evenly distributing weight and maintaining a clear line of sight, can also support safer driving,” noted Travelers Insurance, in a note to InsuranceQuotes.com. “If you’re using a roof rack, check your vehicle height and make sure you stay within rack weight limits.
Drivers should also focus on limiting distractions, as approximately 10% more distracted driving occurs in summer than in any other season, and drivers are distracted for an average of 15 minutes of every hour on the road. “Setting your route in advance, stowing your phone in ‘Do Not Disturb’ mode, and creating safe zones for children and pets in the back seat are all smart strategies,” the Travelers team noted.
July 4th Parties
If you’re holding a July 4th party at a public park, you’ll likely need to take special precautions with your home insurance.
One of the biggest risks when you’re hosting at home is tied to the serving of alcohol.
“If you’re like most folks, it’s beers, wine, and cocktails at the ready for a home party, but if someone gets drunk and drives away, you could be held liable for anything that happens after the fact,” Patestos said. “A best practice might be to add a ‘social event’ liability endorsement or special event coverage for the day of.”
Otherwise, your standard homeowners policy should cover something like a fire or even a guest injury on the property if it wasn’t negligent. “For example, if you’re letting people jump off your roof onto the pool, you may find the injury is excluded from coverage,” Patestos added.
“If you’re hosting a July 4th party or cookout in a public park, your best bet for real protection is something called ‘special event’ insurance,” Patestos said. “This would be a one-time charge covering that event specifically.”
Beyond liability concerns, property owners should ensure their grilling setup is safe by checking propane lines for leaks, keeping the grill clean and away from flammable materials, and never leaving it unattended. “No matter the event, it’s important to keep a fire extinguisher nearby and establish safe zones for children and pets,” said Rachel Switchenko, vice president of customer solutions at Plymouth Rock Insurance.
However, insurance needs can change significantly if the cookout is held in a public park. “Liability protections under a homeowners’ policy may not extend to public spaces, depending on the policy’s terms,” Switchenko said. “It’s essential to follow local regulations—especially regarding permits, alcohol use, and firework restrictions, to avoid legal and insurance complications.”
For your July 4th bash, Switchenko advises working with an insurance agent to review coverage details. “That’s particularly the case around liability, alcohol, and off-premises events,” she added. “That can help protect homeowners, their guests, and their property.”
If Your Home Has a Pool
Any home with a pool is a sun-splashed beacon for guests during the July 4th weekend, and should be covered on your home insurance.
Insurers will include several “caution” provisions when putting together a pool portion of your home insurance. For starters, make sure your pool area is secured with proper fencing and a locked entrance to prevent unsupervised access. “That’s especially the case when guests and children are present,” Travelers told InsuranceQuotes. “Self-closing and self-latching gates, along with audible alarms on doors or gates, can provide additional layers of protection.”
Stock the pool area with life-saving equipment such as life preservers, reaching poles, or rescue hooks. “Also, regularly inspect the pool liner, handrails, and deck for wear or hazards like loose boards or rusted supports,” Travelers added.
On the maintenance side, store pool chemicals safely away from the activity area and follow all usage guidelines. “Keep electrical devices away from water and plugged into GFCI outlets. Removing glass bottles, toys, or clutter can help reduce trip and slip risks,” Travelers added.
For Boating Safety
If you own a boat, you can add a rider on your homeowners insurance or buy an individual policy based on the size and usage scope (e.g., smaller boats for rivers and inlets are easily added to a homeowners policy while a larger boat destined for the riskier open sea will likely need its own policy (possibly from a marine insurer).
If you’re operating a boat on the July 4th holiday, stay alert and aware of your surroundings when operating a watercraft. “Holiday weekends often bring more crowded waterways, increasing the risk of collisions,” Travelers cautioned.
Also, familiarize yourself with your boat’s navigation and safety equipment, and always operate within marked channels. “You’ll also want to create a storm preparedness plan to follow in case of tropical storms, hurricanes, or sudden severe weather, which is especially important during peak summer months,” Travelers added.
Lastly, review your boat or yacht insurance policy with your agent before heading out. “If you don’t have coverage in place, contact your insurer to discuss options tailored to your needs,” Travelers noted.
Home Fireworks Displays
Residents of states where it is legal for consumers to set off fireworks should know that most homeowners’ insurance policies don’t cover damages caused by improper use of fireworks or illegal fireworks.
“You might want to think twice about what could go wrong, as you’d be held liable for injuries or property damage,” said William Pemberton, owner and attorney at Pemberton Personal Injury Law Firm. “Some insurers specifically exclude coverage for fireworks-related claims, and it’s worth checking your policy to be certain. You can also check if there are event-specific liability riders that could be added to provide protection just in case.”
If you plan to go to fireworks events hosted by your city, the organizers usually have special event insurance to cover any property damage or injuries. “This type of insurance tends to have multi-million dollar limits due to the potential for disaster that could arise, so if you are injured at one of these events, you can file a claim,” Pemberton noted.
While the July 4th weekend should be a time to celebrate, the risks are heightened with flame factors like grills and fireworks.
“For example, there’s more risk of a fire due to grills being kept too close to homes or on patios, and when errant fireworks go off,” Pemberton added. “You should double-check that your smoke detectors have fresh batteries, keep fire extinguishers handy, and follow proper safety measures for using your grill.”
The Takeaway on Independence Day and Insurance Needs
Reviewing and updating your insurance policies in advance is a good idea, whether you’re having guests over or taking a road trip.
“You don’t want to be lacking in coverage, especially for accidents or break-ins, which are more common during holiday weekends, ”Pemberton said. “Above all, ensure your pets are safe during fireworks; if drinking alcohol, be responsible.”
“You might not be on the road, but if a friend or family member drinks too much at your home and drives, your liability may come into play,” he added.
