Help Protect Yourself from Risks When Holding Yard, Garage Sales

As the weather warms up and people finish their spring-cleaning chores, many decide to hold a yard or garage sale to get rid of excess stuff and pocket a bit of cash in the process.

While a yard sale may transform those cleaning efforts into a profitable day of getting rid of unwanted items, it can also create a setting for a legal nightmare if a visitor injures themselves while on your property. If anyone who’s stopped by your sale slips, trips, falls or is injured by one of your items, it could lead to a claim or lawsuit.

A yard or garage sale held on your property may be covered under a standard homeowners insurance policy, depending on the circumstances and the terms of your policy.

Homeowners insurance liability protection usually provides between $1,000 and $5,000 worth of coverage for medical payments to others. This feature can help you when a person is injured on your property, since it will allow them to directly submit their medical-related bills to your insurer for payment.

The above may seem adequate for a yard sale, but it might be prudent to add more liability protection. You might consider raising your homeowners policy liability coverage to at least $300,000 to $500,000, depending on your specific needs and property.

An excess liability or umbrella policy can help provide yet more protection and won’t typically cost more than $350 a year for $1 million in liability coverage. 

Your homeowners policy may cover your garage sale if it’s a one-time event but may not if it’s a regular thing.

If you are holding frequent yard sales, like multiple times a month, the insurer may consider your activity a home-based business and deny a claim.

To help avoid that scenario, you may want to look into buying a home-based business or commercial policy, depending on your foot traffic, to help ensure coverage of any incidents. Call your agent to discuss your circumstances so they can help find the best solution for you.

While your homeowners insurance would likely cover injuries to your garage sale shoppers, the best policy is to provide a safe environment to help reduce risks. You may want to consider:

• Displaying merchandise in an organized manner on sturdy tables, making sure to eliminate any potential tripping hazards, like extension cords and items lying on the ground.
• Keeping your pets indoors or in the backyard during the sale. Even friendly dogs can get territorial when strangers are at your home.
• Repairing any loose railings or cracked concrete that could be a possible hazard for customers.
• Not selling alone. Instead, have your spouse, another family member or a friend with you to keep track of items and help customers. 
• Not selling dangerous items like knives, swords, firearms, martial arts weapons, fireworks, etc.
• Helping customers carry or move any larger items purchased to their vehicle. 
• Holding your sale on a weekend with nice weather, making sure to have sale times clearly listed. 
• Providing shade and water for visitors if it’s a hot day.

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