Traps with Some Home and Contents Policies – Trap# 3: Alcohol
Many people offer their guests at a BBQ or dinner party, a glass of beer, wine or spirits. With most home and contents policies, the responsible serving of alcohol is fine but with some policies there is a blanket exclusion.
The following wording, also used to explain the pitfalls of trap 2, is set out below:
You can clearly see that it is pointed out to the policy holder that any liability claim arising out of the supply of alcohol or drugs is excluded. Not only is this harsh when it comes to alcohol, since it the exclusion would apply even if you had served one glass of alcohol before your guest slipped on your stairs, but the exclusion of drugs is total. The exclusion would therefore include not just illicit drugs but all drugs, including aspirin, cold tablets or any other any synthetic, semi-synthetic, or natural chemical substance used in the treatment, prevention, or diagnosis of disease, or for other medical reasons.
I do hope that these three very wide exclusions, the three traps, reinforce to you that not all home and contents policies are alike, and that coverage should not be arranged on price alone. If you are in any doubt, I strongly recommend that you speak with an insurance broker to guide you.
One final word of warning: if you think home and contents policies are complicated, you should have a look at business pack policies. They take complexity to a whole new level!