How Adding a Pool Affects Your Homeowners Insurance

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How Adding a Pool Affects Your Homeowners Insurance

Integrated Insurance Advisors offers advice on insurance needs when adding a pool to your backyard

Adding a swimming pool to your property is a significant enhancement that promises endless enjoyment and aesthetic appeal, but it also introduces new considerations for your homeowners insurance with pool. This upgrade can affect your liability and the overall cost of your insurance policy, due to the increased risk of injury and property damage associated with pools. Understanding how a pool impacts your homeowners insurance is crucial for maintaining adequate coverage and ensuring your peace of mind. It is essential for pool owners to be informed about their insurance policy details, including coverage for ‘other structures’, liability protections, and any requirements for security sensors or fences around the swimming area.

Insurance Considerations for Pool Owners

Dwelling and Other Structures Policies

For homeowners with pools, understanding the coverage under the “other structures” section of their insurance policy is crucial. Typically, pools are included under this category, which usually covers up to 10% of the dwelling coverage. For instance, if a home is insured for $300,000, the coverage for other structures like pools would be about $30,000. Homeowners may opt to increase this coverage.

Liability Coverage Options

Liability coverage is a critical aspect of homeowners insurance for pool owners due to the increased risk of injuries. It is advisable to liability coverage when a pool is present. For those seeking even more comprehensive coverage, an umbrella liability policy is recommended, starting at $1 million. This policy kicks in after the limits of the standard homeowners insurance are reached, providing an additional layer of security in case of accidents or injuries associated with the pool ¹²³.

Common Exclusions in Pool Insurance Coverage

Wear and Tear

Homeowners insurance typically does not cover damage to swimming pools that results from wear and tear. This means any deterioration that occurs over time due to the pool’s normal use and aging process is generally not eligible for coverage under a standard policy. Homeowners are expected to manage these types of issues through regular maintenance and repairs ⁴.

Lack of Maintenance

Similarly, damage that arises from a lack of maintenance is also not covered by homeowners insurance. This includes scenarios where the pool’s filtration and pump systems are damaged due to negligence in clearing debris or maintaining chemical balances. Ensuring the pool is properly cared for is crucial to avoid potential damages that are not covered by insurance ⁵.

Flood Damage

Flood damage to swimming pools is another common exclusion in homeowners insurance policies. Standard policies do not cover damages caused by flooding, including any necessary clean-up or repairs to the pool post-flood. Homeowners living in flood-prone areas should consider additional flood insurance to cover potential damages to their pools, as even private flood insurance solutions might offer more comprehensive coverage options for swimming pool damage ⁶.

Strategies to Lower Your Insurance Costs as a Pool Owner

Increase Pool Safety

Homeowners can significantly reduce insurance premiums by implementing safety measures around their pools. Installing a fence with a minimum height of 48 inches and slats spaced no more than four inches apart ensures it’s difficult for children or pets to access the pool unsupervised ⁷. Additionally, adding an automatic safety cover or a self-closing gate can further mitigate risks, potentially lowering insurance costs due to reduced liability ⁸. Resist the urge to add a diving board or slide, as these additions create a greater risk and some companies will decline offering insurance.

Shop Around for Policies

It is beneficial for homeowners to periodically review and compare insurance policies, especially after installing a pool. Shopping for insurance allows homeowners to find the most competitive rates and coverage that suits their new circumstances. Engaging with multiple insurance providers can reveal variations in premiums and coverage options, offering opportunities to secure more favorable terms ⁹.

Bundle Insurance Plans

Bundling home and auto insurance policies with the same provider can lead to substantial savings on premiums. Many insurance companies offer discounts ranging from 5% to 15% for customers who choose to bundle their policies. This not only simplifies the management of insurance documents but also reduces the overall cost of insurance ¹⁰.

Conclusion

Given the complexity of navigating insurance policies and the unique considerations introduced by pools, taking proactive steps to ensure your coverage is comprehensive and reflective of your needs is crucial. Optimizing safety measures, regularly comparing insurance offerings, and considering bundling policies are easy methods to possibly reduce insurance costs, while fortifying your security blanket. Do not hesitate to contact us to answer questions. Making informed decisions in not only enhances your enjoyment of your pool but also provides added security against unforeseen accidents.