Pool Insurance: What Counts?

When it comes to insurance, pools are considered an attractive nuisance, meaning they are deemed to be a liability hazard. This is because they can attract children and lure them into dangerous situations, such as drowning or slipping on wet surfaces. As a result, insurance companies will often require safety measures to be put in place, such as fencing or locking gates, to reduce the risk of accidents. The type of pool also determines how it is covered by insurance; small above-ground pools may be considered personal property, while permanent above-ground 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 typically covered under dwelling coverage. Having a pool can increase insurance rates due to the increased risk of filing a claim.

Above-ground pools are usually considered personal property

In terms of insurance coverage, above-ground pools fall under personal property coverage, which typically covers items that are not attached to the dwelling. The coverage limit for personal property is usually around 50-75% of the total coverage on your home. For example, if you have a $300,000 dwelling coverage, you would have up to $150,000 in coverage for your above-ground pool and surrounding structures.

It's important to note that insurance companies may have different criteria for classifying above-ground pools. Some insurers may consider them as external structures, especially if they are designed to remain in place year-round and require minor land alterations. In such cases, above-ground pools would fall under the "other structures" category for insurance purposes.

When purchasing insurance for an above-ground pool, it's essential to carefully review the policy and understand the coverage limits and exclusions. Some insurance companies may require certain safety measures, such as fencing or locking gates, to be in place before providing coverage for above-ground pools. Additionally, above-ground pools may not be covered for certain types of damage, such as general wear and tear or damage caused by freezing water.

Furthermore, having a pool, including an above-ground pool, can impact your liability coverage. Pools are considered an "attractive nuisance," which means that you are liable for any incidents that occur, regardless of permission. As a result, insurance companies may recommend increasing your liability coverage or purchasing a separate umbrella policy to protect against potential claims.

In-ground pools are deemed 'other structures'

In-ground pools are typically considered "other structures" by insurance companies and are covered by the "other structures" section of a homeowners policy. This is because they are deemed to be permanent structures, unlike above-ground pools, which can often be disassembled and stored away.

The classification of in-ground pools as "other structures" has important implications for insurance coverage. It means that any damage to the pool will be covered up to a limit, usually 10% of the dwelling coverage limit. For example, if a home is insured for $250,000, the limit for coverage of other structures, including an in-ground pool, would be $25,000. This amount would have to cover not just the pool, but any other detached structures on the property, such as a deck, shed, or garage, that are also damaged in an incident. Therefore, it is important for homeowners to regularly review their coverage limits and increase them if necessary to ensure they have adequate protection.

In addition to coverage limits, insurance companies may also have specific criteria that must be met for in-ground pools to be covered. For example, many insurers require pools to be enclosed by a fence and locking gate to limit access and reduce the risk of accidents. Other safety measures that may be required include installing lights around the pool area, using a safety cover when the pool is not in use, and keeping lifesaving equipment nearby.

It is worth noting that not all insurance companies will cover in-ground pools, and some may charge higher premiums due to the increased risk of claims associated with pools. Therefore, it is important for homeowners to carefully review their policies and shop around for the best coverage options.

Pools increase liability exposure

Pools are considered an "attractive nuisance" by insurance companies, which means that they are artificial conditions that might attract children and put them in danger. As a result, pools increase liability exposure for homeowners. This is especially true if you have a pool with a diving board or no safety fence, which could cause your insurance rates to increase.

The attractive nuisance doctrine imposes a higher level of responsibility on homeowners who have created dangerous conditions that attract children to their property. In the case of pools, this means that homeowners are usually required to provide warnings and/or minimise potential risks by taking safety precautions such as installing fencing and locks. This is also why insurance companies have stringent underwriting and swimming pool insurance requirements.

The liability portion of your homeowners insurance will cover medical bills or lawsuits that result from incidents in or around the pool, such as an injury or death. The policyholder and household are excluded from this coverage. However, it's important to note that insurance companies will typically exclude coverage for pools that are inadequately fenced or have a slide or diving board.

Homeowners with pools often see higher insurance rates because they are more likely to file a liability claim. The average cost of homeowners insurance with a pool is around $1,823 per year, but this can vary depending on the type of pool, the amount of liability coverage, and how the insurer classifies the pool.

To reduce the risk of liability, homeowners can take proactive steps such as restricting access to the pool with fencing and locks, requiring swimming ability or life jackets for young children, and providing supervision. In addition, homeowners should consider purchasing a separate swimming pool policy or an umbrella policy to provide additional liability protection.

Insurance companies deem pools an 'attractive nuisance'

Insurance companies consider swimming pools an "attractive nuisance", or, in other words, property that might attract and endanger a child. This means that if someone, even if uninvited, were to have an accident in your pool, you could be held personally responsible for their injuries. While your liability coverage will kick in, it can quickly be exhausted, leaving you open to being sued for the remainder of the damages.

The idea behind attractive nuisances is that they could draw uninvited guests (primarily children) to your property and potentially cause an accident. Pools, along with other features such as fountains, ponds, and waterfalls, are likely to be a magnet for young children.

According to Cornell Law School, the attractive nuisance doctrine imposes a higher level of responsibility on homeowners who have created dangerous conditions that attract children to their property. Children are given the status of invitees, meaning that whether they are trespassing or invited, they have the same level of protection under the law. Homeowners are usually required to provide warnings and/or minimise potential risks as dictated by city, county, and state laws. This is also why insurance companies have stringent underwriting and swimming pool insurance requirements.

Insurance companies are concerned with the increased liability risk of insuring homes with swimming pools. As a pool owner, you are liable for accidents even if people sneak into your pool without your consent. Whether the pool is in-ground, above ground, or a kiddie pool, you can reduce your risk by surrounding your pool area with a fence that's at least four feet high and hard to climb, installing a locking gate (preferably with an audible alarm), and covering the pool with a safety cover. Keep rescue items (like a life ring with throw ropes) in the pool area, but remove all pool toys from the deck and pool area immediately after swimming to make the pool less inviting to children.

In addition, insurance professionals recommend adding a personal umbrella policy for an enhanced level of financial protection if you have a swimming pool. While your liability coverage will cover the medical bills or lawsuits that result from incidents in or around the pool, it may not be enough. Umbrella policies provide more financial protection than a standard homeowner's policy, generally applying once your homeowner's liability limits have been exhausted.

Pool insurance requirements vary by municipality

Insurers may also have their own requirements for pool insurance. For example, some insurers may require lights around the pool to prevent guests from slipping or falling in, while others may mandate non-skid tape on diving boards. It is important to check with your local government and insurer to ensure you meet all the necessary requirements and have adequate coverage.

The type of pool, such as above-ground or in-ground, can also impact the insurance requirements. Above-ground pools are typically considered personal property, while in-ground pools are usually deemed "other structures." This distinction can affect how the pool is insured and the associated costs.

Furthermore, having a pool can increase your insurance rates due to the higher risk of filing a claim. This increase in rates is not only due to the additional property that needs to be covered but also because of the higher likelihood of filing a liability claim. As a result, it is recommended to increase your liability coverage or consider a personal umbrella policy to protect yourself financially in the event of a pool-related incident.

Frequently asked questions