I rented my farmhouse to a couple for a “weekend retreat.” Saturday afternoon, 100 cars pulled up. They hosted a full wedding with a DJ and catering. A guest fell off my deck (which wasn’t built for 150 people) and broke their leg. My insurer says, “This was a commercial event. Coverage denied.”
Key Takeaways
- The Commercial Event Exclusion: Residential policies cover residential living. They do not cover commercial events (weddings, concerts). The moment the headcount spiked, your policy voided.
- Capacity Limits: If your house is rated for 10 people and 100 show up, you are negligent for allowing “overcrowding,” even if you didn’t know.
- Liquor Liability: Weddings imply alcohol. If you didn’t hire a bartender with insurance, the liquor liability falls on you.
- AirCover: AirCover explicitly bans “disruptive parties.” While they might cover the liability, they will likely suspend your account for the violation.
The “Why” (The Trap)
The trap is “Change in Risk.”
Insurance rates are based on a family of 4 living there. A wedding of 100 people is a fundamentally different risk profile. Because you (or the guest) didn’t buy “Special Event Insurance,” the gap exists. The guest violated the contract, but you own the property where the injury happened.
The Investigation: I Called Them
- The Event Helper: This is a site where you buy one-off event insurance. I checked: for $150, the guest could have bought a policy listing me as “Additional Insured.” This would have saved everything.
- Proper Insurance: “We cover unauthorized parties,” the agent said. “If the guest throws a party you didn’t know about, we still defend you. If you agreed to the party, you should have told us.”
- Standard Carrier: “Unauthorized or not, a wedding is not a covered use of a dwelling policy.”
Comparison Table: Event Liability
| Feature | Standard Homeowner | Commercial STR Policy | One-Day Event Policy |
| Unauthorized Event | Excluded | Covered (Usually) | N/A |
| Authorized Wedding | Excluded | Excluded (Need rider) | Covered |
| Liquor Liability | Excluded | Optional | Included |
[IMAGE: Screenshot of a noise monitoring app showing a decibel spike to 100dB at 9:00 PM, labeled ‘Unauthorized Event Detected’]
Step-by-Step Action Plan
- Install NoiseAware: Set it to alert you if noise exceeds 70dB. A wedding is loud. Catch it in the first hour and shut it down.
- Clause in Rental Agreement: “No unauthorized events. Penalty: $5,000 + Immediate Eviction.”
- Require Event Insurance: If you allow small events, force the guest to buy a policy from The Event Helper or WedSafe and email you the certificate.
- Check Deck Load: If you market as an event venue, your deck must be built to commercial code (100 psf), not residential code (40 psf).
FAQ
Can I keep their deposit?
Yes. And claim extra through AirCover for “extra cleaning” and “unauthorized guests.”
Am I liable for the drunk driver leaving my house?
Potentially, yes. If they got drunk at your property (even if you weren’t there), you can be named in the Dram Shop suit.
Does AirCover pay for the grass ruined by parking?
Yes, usually. Take photos of the tire tracks. That is property damage.