If your neighbor sues you to recover medical costs, or if you damaged his house, this is when an important part of your home insurance policy kicks in: Your insurance company might pay for your legal defense.

If you burn yourself setting off fireworks, you won't be covered by your home insurance policy. If a neighbor comes over and injures herself when setting off some fireworks, she is covered.

Too much "fire" in those fireworks?

What about burning your house down? Again, as long as it isn't something you did on purpose, you're covered for any property damage you might cause.

If possessing or setting off fireworks is illegal in your state, your insurance company might not cover the cost of any damage or injury.  Check with your agent or insurance company, before setting off any fireworks.

What's not covered?

There are a few instances when your home insurance policy won't cover you.

• If you are manufacturing fireworks in your home and there's an accident that injures someone, or causes property damage, you're out of luck.

•   If you own fireworks and they are stolen or destroyed, it makes a difference if they are legal in your state. Items that are illegal to possess aren't covered if they are stolen or destroyed in a fire.

•  You are going to have to pay, if you aim a bottle rocket at your neighbor. Your home insurance policy won't cover any medical expenses because of the intentional nature of your act.

Fireworks safety tips

For the safest Fourth of July, attend your community fireworks display instead of buying fireworks. If you plan your own display, the following safety advice comes from the Florida Department of Insurance.

• Follow the law. Don't use fireworks that are illegal in your state.
• Leave pets at home. Pets have sensitive hearing and the noise can hurt them.
• Keep fireworks away from children. Every year children lose fingers in fireworks accidents, and even sparklers burn at up to 2,000 degrees, making them extremely dangerous for children.
• Safety first. Be sure other adults and children are out of range before lighting fireworks. Never throw or point fireworks at others.
• Use a flat, hard surface like a driveway. Avoid lighting fireworks on grass or in containers.
• Read the labels and follow directions. Even legal fireworks, such as sparklers, might not be safe.
• Use an open area. An open area will present far fewer fire hazards. Keep children at least 30 feet away from where you are lighting the fireworks. Explain to children that fireworks are not toys and can cause the loss of fingers or hands.
• Take it slow. Light only one at a time.
• Wear eye protection. Don't put any body part near a lit firework.
• Don't use malfunctioning items. Never attempt to relight a "dud."
• Have water close by. Have a fire extinguisher, hose, or bucket of water handy for emergencies. Drop used fireworks into a bucket of water.
• Set a good example. Act responsibly and children will mirror your behavior.

"Detonating these devices is best left to the professionals, because even fireworks that seem innocent can cause serious injury," says former-Consumer Product Safety Commission Chairman Ann Brown. "Fireworks can add fun and excitement to a holiday celebration, but they can also turn a backyard celebration into a rush to the emergency room," Brown adds