You’re getting a new pool and the family is looking forward to some fun in the sun. But before dipping your toe into the chlorinated water, make sure you are properly covered by your home insurance policy.
Here are three ways that you, as a pool owner can protect yourself with home insurance:
- Increase liability protection
- Increase “other structures” limit
- Purchase an umbrella liability policy
Pool insurance cost
Pools are usually covered under the “other structures” portion of your home insurance policies. Homeowners insurance typically covers other structures up to 10 percent of your dwelling coverage. There is no added cost for this.
If your home is insured for $300,000, this would mean you’re covered for up to $30,000 for other structures. You can increase other structures coverage for an added cost if 10 percent is not enough.
Pools open you up to added liability so you’ll want to review your liability insurance. Insurance companies consider pools an “attractive nuisance.” The homeowner is responsible for anyone who uses it – even a stranger who decides to jump the fence and cool off in your pool.
Liability coverage will protect you if someone is injured in the pool. It pays an injured person’s medical bills and protects you against lawsuits so it’s important to check to see if you have enough liability insurance.
Though most homeowner policies include a minimum of $300,000 of liability protection, we highly recommend that pool owners increase the liability amount to $500,000.
If you want even more coverage, you could purchase umbrella liability policy. This could add $1 million liability protection beyond what you have on your home. Umbrella policies usually run about $150 to $250 per year for a $1 million in coverage.
Swimming pool insurance coverage
Insurers require that pools are in compliance with local regulations, such as having a fence to keep people from entering the yard. You’ll also want to check with your insurance company about whether pools with slides and diving boards are excluded from your home insurance policy. Some insurers do not provide liability coverage for injuries involving a diving board or slide.
Other structures home insurance
This is the part of home insurance that covers structures that are on your property, but not connected to the house by a fence, utility line or other connection. This can include a:
- Detached garage
An important piece to note is some detached buildings are covered at replacement cost. This means the policy will pay to repair or replace the building. However, other structures that are not buildings, such as pools, will be covered at actual cash value, which takes into account depreciation and age. In that case, you’re not going to get what the item was originally worth. In other words, you will likely not get the full value for your $20,000 in-ground pool if it’s damaged. Some carriers offer an endorsement to cover your pool for replacement value. Please contact us today to discuss your options.