Have you already accepted and agreed to this party? If not, I would tend to not accept it for all the reasons / questions you have posed.
How many will be there? Is your homeowners insurance adequate? If you agreed to a party, Airbnb's Host Insurance might not cover damage. Regarding charging extra: I'd definitely charge extra, but how much more I couldn't say...don't know what the going rate is for this kind of thing. You do have a hefty security deposit, but if you have to claim damages against it, be prepared to have photos, repair estimates, etc. especially in the event the guest doesn't feel they are responsible. You have 48 hours after check out to get these things organized and make a claim against the security deposit.
Most veteran hosts would advise against guests having a party in their home....there are plenty of stories of Airbnb homes being destroyed / trashed by out of control guests. Are you prepared for that? What time of year is this to take place? Will the guests be outdoors or indoors? Is the reservation for one night or several?
All in all, it's your decision, but if you've agreed to allow a guest to have a party, then you're kind of stuck with all it entails...
Wish you the best of luck and everything turns out ok.