With the arrival of warm, balmy weather, yard sales begin to pop up everywhere. Although a yard sale can turn spring cleaning into a profitable way to get rid of unwanted items, it also creates a setting where injuries can happen and legal exposure can follow.
For example, you may be legally liable if someone at the yard sale slips, trips, or falls and is injured on your property. That is why it is important to know what your homeowner's insurance covers before you invite people onto your property.
Most standard homeowners policies provide liability coverage for bodily injury or property damage caused to others by those living in the home. Policies often include an initial liability limit such as $100,000 to cover legal defense and any resulting judgments.
No-fault medical coverage is another common part of homeowners liability protection. It usually provides between $1,000 and $5,000 of coverage and lets an injured visitor submit medical bills directly to your insurer, which can reduce the likelihood of a lawsuit.
Given today’s litigious environment, you may want more protection than a basic policy provides. Consider raising liability limits to at least $300,000–$500,000, and look into an excess liability or umbrella policy for broader coverage.
For details on typical coverages and options, review information about Homeowners / Personal Liability Insurance and ask your insurer whether an umbrella policy makes sense for your situation.
An umbrella policy can add a million dollars or more in protection and is often relatively affordable compared with the additional coverage it provides.
Types of yard sale events
- Charity or fundraiser event - a one-time event raising money for a charity is most often covered under a standard homeowners policy, though you should check whether the hosting organization extends coverage for volunteers or hosts.
- Occasional or one-time events - the occasional yard sale to sell personal items you no longer want is typically covered by homeowners insurance, but confirm limits and exclusions with your insurer.
- Multiple, frequent yard sales - if you plan to run repeated sales, consider a separate Business Liability or In‑Home Business policy and review guidance such as Home Sellers Liability for selling from a home.
Before hosting a sale, inspect the area for tripping hazards, clearly mark uneven ground, and remove obvious risks to reduce chance of injury.
If you are unsure about coverage or limits, talk to your agent.
Frequently Asked Questions
Will my homeowners policy cover someone injured at my yard sale?
Most homeowners policies include liability coverage that can apply if a visitor is injured, but coverage depends on the policy's limits and any exclusions.
What is no-fault medical coverage and how does it help?
No-fault medical coverage pays small medical bills for an injured visitor regardless of fault, which can reduce the chance of a lawsuit for minor injuries.
Do I need extra insurance for frequent or large sales?
Yes; multiple or business-like sales may require a business liability or in-home business policy because standard homeowners coverage can exclude commercial activities.
Should I raise my liability limits before a sale?
Increasing liability limits or buying an umbrella policy can provide additional protection if you are concerned about higher exposure from visitors or valuable items.