Paul Sanchez
If you're thinking of installing a pool, you'll need to consider how it will affect your insurance. In the US, pools are considered an attractive nuisance, which means they are seen as a potential danger to children and will therefore affect your liability coverage. Most homeowner insurance policies include up to $100,000 of liability insurance for pools, but pool owners are often advised to increase their coverage to $500,000. This can be done by either paying higher premiums or taking out a separate umbrella policy. The cost of your premiums will also depend on where you live and where the pool is located in relation to your house.
| Characteristics | Values |
|---|---|
| Impact on insurance premium | Depends on the policy's specific terms |
| Coverage | Most policies cover above-ground pools, but some may not |
| Liability | Most policies include $100,000 of liability protection, but some experts recommend $500,000 |
| Attractiveness | Pools are considered an "attractive nuisance" and will affect liability coverage |
| Safety measures | Fences, lights, non-skid surface tape, locks on ladders, etc. |
| Maintenance | Required to prevent damage and ensure coverage |
| Location | Whether the pool is considered part of the home or an external structure impacts coverage |
| Type of pool | Small above-ground pools may be considered personal property, while permanent pools are deemed "other structures" |
| Umbrella policy | Additional liability coverage for peace of mind |
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What You'll Learn
Above-ground pools are considered an attractive nuisance
Attractive nuisances include swimming pools, playground equipment, and other artificial landscaping features that can make your yard appealing to children in the neighbourhood. Even if they are trespassing, you may be held legally responsible if a child is injured due to an attractive nuisance on your property.
In the case of above-ground pools, insurance companies consider them an attractive nuisance, and your insurer is likely to view them as a significant risk. While an above-ground pool may not be listed as an exclusion in your policy, failing to disclose it to your insurer could result in insufficient coverage or even a voided policy.
To reduce your liability for accidents involving attractive nuisances, there are several precautions you can take. For example, you can install a fence that is at least four feet tall, with a locking gate, around your pool. A pool alarm system and a safety cover for the pool can also enhance safety. Additionally, ensure that all pool chemicals are safely stored out of reach.
It is important to note that the impact of an above-ground pool on your homeowner's insurance premiums will depend on the specific terms of your policy. Some policies may already include coverage for pools, while others may require you to add this coverage. It is recommended to consult with your insurance agent or refer to your policy to determine the specific coverage and any necessary adjustments.
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Insurance companies recommend increasing liability coverage
Installing an above-ground pool in your yard can increase the risk of owning a home. Therefore, it is essential to have proper insurance coverage when adding a pool to your home. While a basic homeowners insurance policy includes liability, you or your insurance agent may feel that the coverage offered may not be sufficient for your situation.
Insurance companies typically recommend increasing liability coverage from $100,000 to $500,000 when installing a swimming pool. This increase might add $50 to $75 to a homeowner's insurance annual premium in states where swimming pools are not standard. In areas like Houston, where pools are common, the increase in premium might be less.
If your assets are significant, you may want to purchase additional liability coverage through an umbrella insurance policy. An umbrella policy provides a lot more liability coverage, well beyond the typical limits of a homeowner's policy, at an affordable price. Most umbrella insurance policies cost $200 to $300 annually for $1 million in coverage.
You can also take appropriate safety measures to minimize the impact on your homeowner's insurance premiums. For example, almost all cities and towns require pool owners to install a fence or enclosure around the pool or property. Other safety measures include installing a pool safety cover, alarms, and locks on ladders.
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Additional safety measures can help minimise the impact on insurance premiums
Installing an above-ground pool can increase your insurance premiums, as insurance companies consider it an "'attractive nuisance", or property that might attract and endanger a child. This means that your insurer likely views it as a significant risk. However, there are additional safety measures you can take to minimise the impact on your insurance premiums.
Firstly, it is important to consult with your insurance agent and pool builder to understand the effect an above-ground pool will have on your insurance. Your insurance agent can explain your current policy and suggest necessary adjustments, while your pool builder can recommend safety features to incorporate into the pool's design, such as an automatic or manual pool safety cover.
Secondly, you should confirm that your homeowner's insurance policy covers swimming pools. Many policies in certain areas, such as Houston, already include coverage for pools as they are common in those regions. If your policy does not include coverage for pools, you will need to add this to your policy.
Thirdly, consider increasing your liability coverage. Most homeowner's insurance policies include a standard $100,000 of liability coverage, but insurance companies typically recommend increasing this to $500,000 when installing a swimming pool. While this will result in a higher annual premium, the increase is usually not drastic and may only be a few dollars, depending on your desired level of additional coverage.
Finally, you can purchase an umbrella insurance policy, which provides additional liability coverage beyond the typical limits of a homeowner's policy, at an affordable price. This is especially relevant if you have significant assets. While this is not technically an increase in your homeowner's insurance premium, it is an additional cost to consider when installing a pool.
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The type of pool determines how it's covered
The type of pool you have determines how it is covered by insurance. Small, basic, or temporary above-ground pools are often considered personal property, while permanent above-ground pools and in-ground pools are usually deemed other structures. Indoor pools and outdoor in-ground pools that share the same foundation as the home are usually classified under dwelling coverage.
Above-ground pools are relatively easy to assemble, with a national average installation cost of about $3,000. However, prices can go up to $20,000 or more if you add features like decking. In contrast, in-ground pools are more expensive, with a national average installation cost of about $55,000.
Insurance companies consider swimming pools an "attractive nuisance," which means they are a potential source of danger to children. As a result, insurance companies typically recommend increasing liability coverage from $100,000 to $500,000 when installing a swimming pool. This increase in coverage will result in higher annual premiums.
In addition, the way your insurance company categorizes your pool will impact your replacement cost value or personal property limit. If your pool is considered part of the home itself, it will fall under replacement cost coverage. If it is considered an external structure, it will fall under personal property coverage.
It is important to note that not all property insurers will insure a home with a pool. Therefore, it is crucial to consult with your insurance agent and review your policy to understand how your specific pool is covered and what adjustments may be needed to ensure adequate coverage.
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Some insurance companies won't insure a home with a pool
Whether you already have a pool or are considering installing one, it is important to understand whether your homeowners insurance will cover your swimming pool and related incidents. The answer to this question depends on your insurance company and your specific policy. Some insurance companies may not insure a home with a pool, while others will.
If your insurance company does not specifically exclude pools from coverage, your pool may be covered by your existing insurance policy. However, it is important to disclose the pool to your insurer and consider additional liability protection. In some cases, your insurance company may require you to install a fence or enclosure around the pool to qualify for coverage.
Even if your insurance company does cover pools, they may consider it an "attractive nuisance", or property that might attract and endanger children. This means that they may view the pool as a significant risk and increase your premiums. In this case, you may want to increase your liability coverage or purchase a separate umbrella policy to cover any liability claims.
If your insurance company does not cover pools, you may need to shop around for a new policy that does. It is important to understand the coverage and exclusions of any new policy and to work with your insurance agent to ensure you have adequate coverage for your pool.
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Frequently asked questions
Yes, an above-ground pool will likely increase your insurance premium. This is because insurance companies consider swimming pools an "attractive nuisance", which means that they are liable for any incidents that occur in or around the pool, regardless of whether the person using it had permission.
The increase in your insurance premium will depend on your insurance provider and the type of pool you are installing. In states where swimming pools are uncommon, the increase might add $50 to $75 to your annual premium. In areas where pools are common, the increase might be less.
You can take safety measures such as installing a fence or enclosure around the pool, placing lights around the pool area, and using non-skid surface tape on a diving board. You can also shop around for insurance providers and request quotes to find the best option for you.
If you don't disclose your above-ground pool to your insurance provider, you may be underinsured, or your coverage could be voided if your insurer finds out. It is always best to disclose any changes to your property to your insurance provider to ensure that you have adequate coverage.
