A swimming pool can turn your backyard into the ultimate summer escape, but it also comes with added responsibility. While pools boost enjoyment and property value, they can increase your home insurance costs and liability risk due to the higher chance of accidents or claims.
Before installing a pool, it’s important to understand how it affects your coverage, including higher premiums and stricter safety requirements. In this guide, we’ll break down exactly how a swimming pool affects your home insurance and what you can do to stay properly protected.
What Responsibilities Come with Owning a Swimming Pool?
While owning a pool offers many advantages, they are a considerable investment. The average pool can cost $50,000 to $80,000 to install and does not include annual maintenance fees. Pools also come with increased risk. Slips and falls on wet surfaces and drowning are most notable. They may also attract unwanted attention from both human and creature trespassers.
There may be financial coverage for specific incidents, depending on your homeowners’ policy. However, a swimming pool comes with very specific rules and coverage. So, discussing your insurance needs with your isure broker or insurance company is important.
Types of Outdoor Pools and Insurance Implications
The type of pool you have will affect the insurance coverage you’ll need:
- Above-ground pools: Above-ground pools may be considered personal property or structures depending on how permanently they are installed and your insurer’s policy. Therefore, if it incurs damage, you won’t receive the same financial protection as if it were considered a permanent structure.
- In-ground pools: In-ground pools are usually covered under “other structures,” but you may need to increase limits to protect their value fully. This means you must purchase additional coverage to protect it from damage. Cost will depend mainly on the cost of replacing your pool.
Does your Home Insurance Cover Swimming Pools?
If you are in the market for a home with a pool or looking to install one, it will impact your costs. This applies to all types: above-ground, in-ground pools and indoor pools. There are two main ways a pool can affect your home insurance:
- They raise your property value.
- They increase the risk on your home policy.
Both of these factors affect your costs and policy limits. Since your property is more valuable with a pool, you will need to increase your limits to ensure they match your home’s replacement value.
A more important factor affecting home insurance costs is the rebuild value or replacement cost. How much will it cost to rebuild your home if it is destroyed? The higher your home’s replacement cost, the more you will pay for home insurance.
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Indoor Pools and Home Insurance Considerations
Indoor pools aren’t any safer than outdoor pools. Accounting for added risk within your home insurance policy—if it’s not already included—is also key. Any complications that may occur, should unforeseen incidents cause water damage outside of regular wear and tear, will also need to be considered when calculating the premium. Before installing your pool, it’s best to understand how it can affect your home insurance premium and what may help keep your rate under control.
Homes with indoor pools are often considered higher-risk or high-value properties and may require specialized insurance coverage.
Does Owning a Pool Raise Your Insurance?
Depending on the pool’s size, type, and value. Pool insurance premiums can range from $25 to $75 per month. It doesn’t seem too bad when you consider a ripped pool liner can cost thousands to repair or replace.
Pool Insurance Considerations
Regardless of a home’s style or size, it is vital to have the right level of protection for your property. To protect yourself from liability claims and damages, you should probably consider:
- Increasing your liability coverage: Liability is a standard part of your policy. Since having a pool adds a layer of risk, increasing your limits will cover you should you be found liable if someone is hurt using it.
- Umbrella coverage: A potential hazard on your property (like a swimming pool) can be the site of a catastrophic injury. This provides an extra layer of protection once you exceed your liability amount. Speak with your isure broker to assess your needs.
Pool Insurance Requirements in Ontario
Although rules and regulations for swimming pools change between municipalities, it is essential to always consider these safety measures:
- A new pool requires a pool enclosure permit.
- Building a fence on the neighbour’s shared property line requires written approval from your neighbour.
- Pools should be difficult to climb (for child safety).
- Build an enclosure around the pool (backyard fences usually count).
Because all pools require a pool enclosure, they must go through a permitting process. For example, in Toronto, you must first obtain a Zoning Certificate to get the permit. This can be done by completing the Zoning Form and emailing it to [email protected].
- Keep your gate fence locked when you’re not supervising the pool.
- Ensure that a responsible adult closely supervises any child using the pool.
- Ensure everything in the pool is in proper working order, such as the pump, diving board, and slide.
- Keep life-saving flotation devices nearby for emergency use.
- Be cautious with the use of alcohol at pool parties or even when the pool is not in use. No glass near the pool!
- Post pool safety rules and remind all family members and guests about them before they go for a dip.
- Have everyone use the pool in pairs so there’s always someone around to help if needed. Never swim solo!
Pool requirements vary by municipality, but most require fencing, self-closing gates, and permits.
Pool Safety Tips for Homeowners
1. Establish Pool Rules
To start, when hosting a pool party, be sure to post or announce the rules clearly for guests. Keep in mind tips like no running, no diving in shallow water, and no rough play near/in the pool. Reminders can help to keep a party fun and safe, preventing injuries.
2. Keep Safety Equipment Nearby
Next, it is smart to keep a life ring, a reaching pole, and a first-aid kit near the pool area. Plus, make sure that at least one person knows where they are and how to use them.
3. Secure Pool Area
If there are children present, make sure there is a fence or self-latching gate around the pool area. Also, when the pool is not in use, consider putting on a pool cover to prevent accidental slips/falls.
4. Limit Alcohol Near the Pool
While it is fun to have an alcoholic beverage on a beautiful day, make sure to keep it away from the pool. Alcohol can impair a person’s judgement and coordination, so being near a pool can result in slips/falls/injuries. Encourage guests to drink responsibly, especially if they are swimming/supervising others in the water.
5. Supervise Children
Finally, assign a responsible and sober adult to actively watch over the kids in and around the pool area. Accidents can quickly catch even the strongest swimmers off guard and lead to trouble.
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Your Top Questions About Pools and Home Insurance Answered
Do I need extra liability insurance for a pool?
Often, yes. Many homeowners choose to increase liability limits or purchase umbrella insurance.
Yes. Most insurers increase premiums for a couple of reasons:
- Higher liability
- Replacement costs
Does your home insurance cover above-ground pools?
Yes. Above-ground pools are typically treated as personal property, while insurers may classify in-ground pools as other structures.
How Does a Swimming Pool Affect Home Insurance in Ontario?
Installing a swimming pool can enhance your lifestyle and increase your home’s value, but it also impacts your insurance. Pools raise liability risks and replacement costs, so it’s important to ensure your coverage is up to date. Homeowners with pools should review their policies, as higher liability limits or additional coverage may be needed. You should also inform your insurer of any upgrades, since failing to update your policy could leave you underinsured.
At isure, we can help you find the right coverage so that you can enjoy your pool with confidence and peace of mind.
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