A Pool and ts Impact on Homeowners’ Insurance

There are a lot of factors that impact the cost of your homeowners’ insurance. These include your home’s location, its size, the materials it is constructed of and its age. It also can include amenities your home may have like a fireplace or even a pool. According to the Association of Pool and Spa Professionals, about 4% of American homes have a pool. That translates into about 10 million of these backyard kid magnets. The most popular states for pools (per capita) are not surprising, warm weather states. The top three are Arizona, Florida and Nevada. How and why do pools impact homeowners’ insurance rates?

If you are considering installing a pool or purchasing a home with a pool, be aware that insurance companies consider backyard pools an “attractive nuisance”. Homeowners are responsible for the safety of those who use the pools, including those who may use them without permission. This places homeowners with a pool at a higher risk than those without, resulting in a higher average premium. You should also be aware that even if an insurance company covers a home with a pool, most will require that a pool be in a locked fenced yard. Others may flat out deny homes as ineligible.

Another factor to consider is that homeowners’ insurance also provides coverage for an in-ground pool itself. This could add to the replacement cost of a home, also increasing premiums. An above ground pool is treated differently under a homeowners’ insurance policy in that it is “portable”. For that reason, it is treated more like a possession like a personal watercraft.

One final aspect to ponder when considering a home with a pool is if the traditional $100,000 homeowners’ insurance liability limit is sufficient. Since a pool increases liability risks, many homeowners with pools will choose to expand that coverage to $500,000 or more. This can provide greater peace of mind and protect against potential lawsuits from pool-related injuries.

In short, pools can increase homeowners’ insurance premiums because:

  • They are considered an attractive nuisance, increasing liability risks
  • They can increase the replacement value of a home
  • Homeowners’ with pools often choose higher liability limits

A pool can be a great way to turn a home into an oasis. It does have its consequences. If you own a home with a pool, contact us and let our independent insurance agents do some caparison shopping for you. They have access to multiple insurance companies; some who may offer more attractive rates for pool homes. Contact us today and put the power of our independent insurance agents to work for you!

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