All you need to know about holiday decorations and home insurance

This article has been updated from a previous version.  

From trees and lights to candles and ornaments, many homeowners decorate their properties in preparation for Christmas. While these items bring joy, they can also pose a risk to your home and those inside it. For instance, Christmas trees and lights can catch fire, and the extra electrical cords used for these decorations can be tripping hazards.  

If you’ve already decked the halls, you might want to take a closer look at your home insurance policy and see what coverage you have for things like fires, high-value gifts, and personal liabilities.  

Am I covered if my Christmas decorations cause a fire?  

Each winter season, approximately 200 fires involving Christmas trees and lighting occur across Canada, some of which prove deadly. There were two fatal fires in Ontario, killing five people, and Nova Scotia reported  

Typically, if you have a standard home insurance policy and your Christmas tree, or any other holiday decoration, causes a fire in your home, you should be covered.  

“Fire is an insured peril under a standard home insurance policy, and there is no exclusion pertaining to Christmas trees or holiday decorations,” says Elektra Hilton, director of operations at HUB International.  

How to prevent a fire inside your home during the holidays  

Every year, the Ontario Association of Fire Chiefs (OAFC) promotes an initiative called 12 Days of Holiday Fire Safety to raise awareness of household hazards during the holiday season.  

In the past, it has provided Christmas tree safety advice to help prevent fires, such as:  

• For artificial trees, choose ones labeled "fire resistant" for better fire safety. This label indicates the tree is less likely to burn and should self-extinguish quickly. 
• Pick a fresh live tree by making sure it is green with sturdy needles and a sticky trunk base. 
• Place your tree away from heat sources like fireplaces and radiators, and keep it hydrated. 

Even after the holiday season is over, there are still things to consider for your safety and your home’s protection.  

For instance, dried out Christmas trees are a known fire hazard and shouldn’t be left on your property without a proper disposal plan. Avoid burning it in fireplaces or wood stoves, as the rapid burning can damage the firebox and chimney, posing a fire hazard. Check with your local municipality for curbside pickup schedules, as many areas recycle Christmas trees into mulch. 

The OAFC also recommends that homeowners check all sets of lights before decorating and discard any damaged sets.   

“Overloaded power bars and outlets can also lead to holiday fires, so this is something homeowners should keep in mind,” adds Hilton.  

She reminds homeowners to make sure they have working smoke and carbon monoxide alarms. Plus, if you have a monitored fire alarm system installed in your home, you could be eligible for a home insurance discount depending on your provider.   

Related: What is ice damming, and is it insured? 

Fire shouldn’t be your only concern this holiday season  

There are many other hazards to consider during the holiday season.  

“Many people have cords running all over the place,” says Hilton. “This could cause people to trip, which would be a liability loss.”  

The good news is, a standard home insurance policy also covers personal liability up to a certain amount, should you be sued for an injury sustained on your property.   

Hilton also suggests considering your home insurance coverage limits around the holidays. All those expensive gifts under your tree, for instance, may not be covered in the event they’re damaged or stolen.  

“Especially if its jewelry or other items of high value,” says Hilton, “[these items] may have specific [coverage] limits that [policyholders] are not aware of, and they may want to check to see if their gift is adequately covered in the event of a fire or other loss.”   

Related: Contents insurance 101: What it covers and why you need it 

Although home insurance is optional in Canada, it’s a wise investment to protect your home and personal belongings. If you’ve opted to go without home insurance, you’ll have to pay for the damages out of pocket in the event of a fire or any other hazard.    

But try to avoid making an unnecessary claim. Once you make a home insurance claim, your premium will likely increase. If you’ve made frequent claims in the past, it signals to the insurance company that you’re a riskier customer, and you could pay more. So, you’ll have to decide if the claim is worth it.  

Read more: Things you can claim (but maybe thought you couldn’t) on your home insurance policy