If you’re the host of a holiday party this year and think your homeowners insurance provides enough coverage, think again.

Suppose your guests have a grand time, but one partygoer leaves the celebration drunk. That guest gets into an accident on the way home. The next thing you know you’re involved in a lawsuit – all because of your intoxicated guest.

According to a new study released by Trusted Choice, a group of more than 7,000 insurance agencies and financial firms, most party hosts are underinsured.

While homeowner insurance policies typically provide a minimum of $100,000 worth of liability insurance, to insure yourself against larger liabilities you need an umbrella policy – and that’s something many people don’t have.

Umbrella policies usually are sold in increments of $1 million, and normally cost about $150 to $250 a year per $1 million of coverage.

You need only one umbrella policy, which can be added to a basic homeowners or auto insurance policy. This insurance usually kicks in after you’ve exhausted the coverage on your homeowner or auto insurance policy.

Typically, a personal umbrella policy covers you for any number of accidents or claims that occur during the policy term. For example, if you have a $1 million limit, you may be covered for several claims at $1 million each.

While it’s good to have insurance, there are some things you can do to ensure you don’t have to use it. Some tips from Trusted Choice:

l Shift the liability by having your party at a restaurant or bar that has a liquor license.

l If you are going to serve wine, beer or liquor, arrange transportation or overnight accommodations for guests who appear intoxicated.

l Serve all the drinks yourself (or hire a bartender) so that you can monitor how much guests are drinking. Also, stop serving alcohol at least one hour before the party is scheduled to end.