Property owners could be liable if their summer parties result in guests' being injured or having alcohol-related accidents while driving home, Allstate insurance warned. If an accident occurs on a homeowner's property because of negligence, the homeowner could be sued. Negligence may include serving guests too much to drink or owning potential hazards, such as a swimming pool or play sets, without taking the proper safety precautions, Allstate noted.

The company recommended that homeowners make themselves familiar with the laws in their states and consider purchasing insurance for social host liability. For example, under Iowa's host-liability law, social hosts who provide alcohol are not legally responsible for the actions of their guests who become intoxicated, unless the alcohol is provided to underage drinkers. In North Carolina, a social host is liable if he 1) served alcohol to a person, 2) when he knew or should have known that the person was intoxicated, and 3) when he knew that the person would be driving afterwards.

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