A house with a pool is a dream come true for many homeowners as they envision lazy days spent lounging around sparkling blue water. Before individuals get too excited, there are some things to consider about how the pool will affect their homeowner’s insurance.
They’re a Liability
A pool is a liability from the perspective of insurance companies. There are multiple ways in which they can result in an expensive claim for the insurance company and they see it as a lawsuit waiting to happen in terms of injuries. Homeowners’ policies typically cover a pool, but it will depend on the insurer and under what clause it’s covered.
Some insurers consider an in-ground pool a detached external structure that’s not covered unless its existence is specifically disclosed to the insurance company. Above ground pools may be covered as personal property since they’re often viewed as “portable.”
Pools are expensive to repair should damage occur and can result in costly claims should someone be injured. That will be reflected in premiums. Another feature that will escalate insurance premiums is the addition of a diving board or water slide. In-ground pools often command a higher insurance rate than an above-ground pool.
A great many insurers will cover the cost of damages up to 75 percent of the cost. If the pool is valued at $100,000, that will mean homeowners shoulder the cost of the rest. Some insurers set a specific monetary limit on the amount they will pay. However, if the pool is considered as part of personal positions, the policy may only cover 10 percent of the total for which the house is insured.
Insurance companies recommend homeowners with an in-ground pool purchase a minimum of $500,000 in coverage. When evaluating a pool, one of the major features an agent will look for is safety measures that include appropriate fencing, automatically locking pool gates, and other safety measures such as alarms.
Selling the Home
For many people, a pre-installed in-ground pool is a siren song that’s irresistible. However, that same pool can be a nuisance and safety hazard to others and make the home harder to sell. Homeowners should consider the pros and cons before installing a pool and understand the risks and costs associated with an already existing pool.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487