Hey Mike, You can get sued for watering your grass. Dont worry about it and do the parade. You are not charging a fee so your homeowners insurance will cover you up to the limits of your liability.
As long as you exercise precautions that any normal and reasonable person would use you will be OK.
They will not take your home. If something happens, an accident, your ins company will either have to defend you, or pay the damages. Either way you are covered.
Again, the key is, you are not charging a fee, you are not a commercial operation, you are not a business. It is no different than taking your neighbors kids to daycare.
Again, in the sue happy world you can be sued for the most frivilous things, you can't worry about everything.
If somebody does sue you, I know a VBSS team that can be had for beer.
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