It's the time of year when children are on their best behavior to ensure they make Santa's "nice" list, while parents are busily buying presents, baking, and sending holiday cards. Of course, stores are full of decorations and trimmings. There have been many articles written over the years about what insurance coverage Santa may need for his sleigh, workers, and such, but little consideration has been given to homeowners' policies and what exposures exist.

Cocoa Stains and Holiday Pains

In his haste to collect those milk and cookies before heading to the next house, Santa may spill cocoa on the carpet and not have time to clean it up. Carpet stains may or may not be covered, depending on what type of carpet it is. Wall to wall carpet is considered part of coverage A, the dwelling itself. This coverage is open perils, and there is no exclusion for sloppy elves on the policy. However, if the carpet is an area rug, there is no coverage to remove a cocoa stain, as there is no sloppy elf included in the named perils for personal property. Now, if the insured has an HO 00 05 or the HO 04 90 Personal Property Replacement Cost endorsement, then there would be coverage.

Some families prefer to leave Santa stronger beverages than cocoa, thus making it possible for him to be operating his sleigh a little under the influence. Let's imagine that Santa crashes into the local power transformer, which then causes a power failure on the insured's property. There is no coverage for damage because of the power failure unless a loss results from a Peril Insured Against. If the power failure results in a fire, then that loss is covered. However, if the power failure simply results in loss of refrigerated food because the power is off for several days, then there is no coverage.