Alyssa Lane
Owning a pool increases the cost of home insurance for several reasons. Firstly, pools increase the replacement cost of a home, which is the potential cost to rebuild based on construction and labour expenses. Secondly, pools increase the liability risk of a property, as they are considered an attractive nuisance, or property that might attract and endanger a child. As a result, insurance companies typically recommend increasing liability coverage from $100,000 to $500,000 when installing a swimming pool. Finally, the type of pool you own matters, as in-ground pools are included in the replacement cost value of a home, while above-ground pools are typically considered personal property.
| Characteristics | Values |
|---|---|
| Pools considered an "attractive nuisance" | Yes |
| Pools increase home value | Yes |
| Pools increase insurance premium | Yes |
| Pools increase liability risk | Yes |
| Pools increase replacement cost | Yes |
| Above-ground pools considered personal property | Yes |
| In-ground pools considered external structure | Yes |
| Pool accessories considered personal property | Yes |
| Coverage for pool damage uncommon | Yes |
| Coverage for pool maintenance issues | No |
| Coverage for flooding | No |
| Coverage for lack of safety measures | No |
| Personal liability coverage for medical and legal bills | Yes |
| Insurance companies may be hesitant to accept pools with diving boards and slides | Yes |
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What You'll Learn
Pools are an attractive nuisance
Pools are considered an "attractive nuisance" by insurance companies. This means that they are a type of property that might attract and endanger a child. As a pool owner, you are liable for any incidents associated with the pool, regardless of whether the person using it had your permission. This is because children under a certain age cannot be considered negligent due to their age, and so the landowner may be liable for any injuries they receive.
The attractive nuisance doctrine applies to the law of torts in some jurisdictions, and it is designed to protect children who are unable to appreciate the risks posed by certain objects. The doctrine has been applied to hold landowners liable for injuries caused by abandoned cars, piles of lumber or sand, trampolines, and swimming pools. It can also be applied to anything on the property, from construction projects and power tools to swimming pools.
The liability portion of your homeowners insurance pays for medical bills or lawsuits that result from incidents in or around the pool, such as injury or death. Homeowners insurance policies typically include at least $100,000 of liability protection, but some experts recommend buying $500,000 worth of coverage. You can increase the limit of your personal liability insurance or purchase a separate umbrella policy, which would cover the cost of any liability claim up to the limit of the umbrella policy.
There are precautions you can take to reduce foreseeable dangers and protect yourself from charges of negligence. For example, you can build a fence around your pool, install lights in and around the pool area, and cover the pool with a retractable cover to prevent unwanted access and accidental falls.
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Above-ground pools are considered personal property
Above-ground pools are typically considered personal property by insurance companies, but this may depend on whether they are portable or permanently installed. If your above-ground pool is portable, it will likely be considered personal property. If it is permanently installed, it may be considered an "other structure".
Personal property coverage on a homeowners policy typically covers personal property at 50% of your dwelling coverage. For example, if your home is insured for $300,000, you'll have up to $150,000 in coverage to protect against damage to your personal property, including your above-ground pool. If your insurance company considers your pool an external structure, you'll need to list it as such and check whether your current limit is enough to cover damage to your pool. You may need to raise your personal property limit, which will increase the cost of your premium.
Other structures coverage typically covers 10% of your dwelling coverage. So, if you have $300,000 in dwelling coverage, your pool may be covered up to $30,000.
It's important to note that homeowners insurance policies do not cover wear and tear, lack of maintenance, failure to properly winterize your pool, or flood damage. You will need to take preventative measures to minimize the impact on your homeowner's insurance premiums. For example, building a fence around your pool can help prevent unwanted access, and installing lights in and around the pool area can help prevent slips and falls.
The presence of a pool may increase your liability risk, as you are responsible for anyone who uses it, whether they have your permission or not. Most homeowner's policies come with standard liability coverage of $100,000, but some experts recommend increasing this to $500,000 when installing a swimming pool. You can increase the limit of your personal liability insurance or purchase a separate umbrella policy, which would cover the cost of any liability claim up to the limit of the policy.
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Liability coverage and limits
Pools are considered "attractive nuisances" by insurance companies, which means they can increase your liability risk even if someone uses your pool without permission. As the homeowner, you're liable for anyone who gets injured on your property, and a pool creates a higher risk of such incidents. Therefore, it is important to have sufficient liability coverage to protect yourself from financial hardship if someone gets injured while using the pool.
Liability coverage can help cover the cost of medical expenses, lost wages, and even legal fees if a lawsuit arises. Standard homeowners insurance generally includes personal liability coverage, but you may want to review and increase your limits. Liability limits of $300,000–$500,000 are often advised for pool owners. You can increase the limit of your personal liability insurance or purchase a separate umbrella policy, which would cover the cost of any liability claim up to the limit of the policy.
It is important to note that liability coverage typically does not protect you or members of your household if you are injured in your own pool. Your health insurance would generally be responsible for covering medical expenses in those cases. Additionally, liability coverage may not apply if the accident was due to owner negligence or failure to maintain proper safety measures.
To mitigate your liability exposure, it is recommended to implement safety measures such as installing a fence or enclosure around the pool, maintaining the pool and its safety features, and putting up a “No Trespassing” sign to limit access from the general public. By taking these precautions, you can help protect yourself and others while enjoying your pool.
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Excluding a pool from insurance
Owning a swimming pool comes with a unique set of risks and considerations when it comes to insurance. While a pool can be a great source of enjoyment for families, it's crucial to understand how it affects your insurance coverage and what steps you need to take to ensure adequate protection.
Excluding a pool from your insurance policy is generally not recommended, as it could leave you underinsured and vulnerable to financial burdens in the event of accidents or property damage. However, there are a few scenarios where excluding pool coverage might be considered:
- High-Risk Features: Some insurance companies may exclude liability coverage for pools with high-risk features such as diving boards or slides. These features are associated with a higher risk of serious injuries, and insurers may be reluctant to provide coverage for incidents related to them. In some cases, insurers may offer coverage for high-risk features but at a higher premium.
- Lack of Safety Measures: Many insurance companies consider safety measures, such as fences, locks, and alarms, essential for pool coverage. Pools without proper safety enclosures may be excluded from liability coverage. Insurers often require specific standards for these safety features, such as minimum fence heights and lockable gates, to mitigate the risk of unauthorized access and potential injuries.
- Type of Pool: The type of pool you own can also impact its inclusion in your insurance policy. Above-ground pools may be considered personal property, while in-ground pools typically fall under other structures coverage. However, excluding a pool from your insurance policy based solely on its type is not advisable, as it leaves you vulnerable to financial risks associated with pool ownership.
- Excluded Perils: Certain types of damage to your pool may not be covered by your insurance policy. Excluded perils can include general wear and tear, lack of maintenance, flooding, or damage from earthquakes. It's important to carefully review your policy to understand what types of damage are excluded and consider additional coverage if needed.
- Liability Concerns: Swimming pools are considered "attractive nuisances" by insurance companies, implying an increased liability risk. While liability coverage can help if someone is injured in your pool, it may not apply if the accident resulted from owner negligence or inadequate safety measures. Excluding a pool from liability coverage could leave you financially responsible for any accidents or injuries associated with it.
While excluding a pool from insurance may seem like a way to simplify your policy or potentially reduce premiums, it's important to recognize the financial risks associated with pool ownership. Instead of excluding coverage, consider shopping around for insurance providers who specialize in pool coverage or have experience insuring homes with similar features. By finding the right provider and tailoring your policy to your specific needs, you can ensure adequate protection while still enjoying the benefits of pool ownership.
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Pools increase the replacement cost of your home
The presence of a pool increases the replacement cost of your home, which in turn increases the cost of your home insurance premium. This is because pools add to the building costs, and insurance companies need to account for this when determining coverage limits. The specific increase in cost will depend on the type of pool, with in-ground pools being more expensive to insure than above-ground pools.
Above-ground pools are typically considered personal property by insurance companies, and may be covered under "other structures" or "personal property" coverage. Other structures coverage usually covers 10% of your dwelling coverage, so a $300,000 dwelling coverage may cover your pool for up to $30,000. Personal property coverage, on the other hand, usually covers 50% of your dwelling coverage, so a $300,000 dwelling coverage may provide up to $150,000 in coverage for your above-ground pool.
In-ground pools are often included in the replacement cost value of your home insurance policy, which increases the maximum claim limit and, consequently, the cost of your premium. While in-ground pool damage insurance claims are uncommon, it is important to check whether your current limit is enough to cover potential damage to your pool. If not, you may need to raise your personal property limit, which will also increase the cost of your premium.
In addition to increasing the replacement cost of your home, pools also increase the liability risk of your home. Drowning is the leading cause of death among children ages 1 to 4 and the second leading cause of unintentional death for children ages 5 to 14, according to the CDC. As such, insurance companies consider pools an "attractive nuisance", or property that might attract and endanger a child. As the owner of a pool, you are liable for any incidents associated with the pool, regardless of whether the person had permission to use it. Therefore, it is recommended that you increase your liability coverage to protect yourself financially in case of unintentional injuries or deaths related to your pool.
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Frequently asked questions
Yes, the presence of a pool may affect your insurance. You will need to confirm that your homeowner’s insurance policy covers swimming pools.
The impact of a pool on your insurance will depend on factors such as the type of pool, the coverage limits of your policy, and the liability risk associated with the pool. Pools increase the replacement cost of your home, which influences your dwelling coverage.
Your pool will typically be covered under your homeowner's policy. It may be considered under dwelling coverage or other structures coverage, depending on the type of pool and your insurance provider's definitions.
Yes, the presence of a pool typically increases the cost of your insurance premium due to the increased replacement cost value and liability risk associated with pools. However, the exact increase in premium will vary depending on your specific policy and property details.
To minimise the impact of a pool on your insurance, you can consider implementing safety measures such as installing a fence around the pool, adding lighting to prevent slips and falls, and getting an umbrella insurance policy to increase your liability coverage at an affordable price.
