How A Pool Affects Your Homeowners Insurance

Before you put the finishing touches on your backyard oasis, you'll need homeowners insurance if you have a pool. Because your pool is considered an "attractive nuisance," your insurance policy must cover both liability and the pool itself. Here's what you need to know.

Does homeowners insurance cover an in-ground pool?

Yes, homeowners insurance covers damage to in-ground swimming pools for an extra $50 per year. But there is one question your insurer must answer: Is the pool considered a part of the house or an external structure? What happens to your replacement cost value or personal property limit depends on the answer.

• Replacement cost value: Your insurance policy may include replacement cost coverage, which pays to replace your home in today's market with the same or similar home. If your home insurance company includes in-ground pools in the policy's replacement cost value, the value of your home will rise. As a result of the new maximum claim limit, the cost of your home insurance premium will rise. This is usually true for in-ground pools.
• Personal property limit: Personal property coverage pays to repair or replace your belongings, not the actual home. If your home insurance company considers your pool to be an external structure, which is usually the case with above-ground pools, you must list the pool as an external structure. You must determine whether your current limit is sufficient to cover pool damage. If not, you may need to increase your personal property limit, which raises the cost.

The good news is that insurance claims for in-ground pool damage are uncommon because there are few perils that can seriously damage them. They are not as vulnerable to wind, water, and fire damage as houses are.

Are above-ground pools covered by homeowners insurance?

Above-ground pools are typically considered personal property by homeowners insurance policies. This type of coverage may also apply to any pool accessories you use, such as the pool liner. Consider one example to see how coverage is calculated.

• Assume your pool is classified as personal property by your insurer. Your house is worth $200,000, and the policy covers personal property up to 25% of the home's replacement cost. Your insurer would pay up to $50,000 to repair or replace the pool in the event of a covered incident. Check your coverage limit and inquire with your insurance company about a claim limit for swimming pools. Then consider whether you require additional coverage.

How does the pool impact liability coverage?

Your homeowners insurance's liability coverage pays for medical bills or lawsuits resulting from incidents in or around the pool, such as injury or death. This coverage does not apply to the policyholder or his or her household.

Swimming pools are considered an "attractive nuisance" by insurance companies, or property that may attract and endanger a child. And if you own a pool — or any other attractive nuisance — you're responsible for any incidents that occur as a result of it, regardless of whether the person had permission to use it.

Homeowners insurance policies typically include at least $100,000 in liability coverage, but some experts advise purchasing $500,000 in coverage. You can either increase the limit on your personal liability insurance or buy a separate umbrella policy that will cover the cost of any liability claim up to the limit of the umbrella policy.

Best insurance companies for homes with pools

Allstate offers the most affordable homeowners insurance quotes for homes with pools among national insurance companies. We gathered quotes for a sample $200,000 home in multiple large U.S. cities from some of the nation's largest insurance companies to determine which company has the cheapest insurance rate for a home with a pool. The quotes were then averaged to determine the average insurance cost for a pool-equipped home across multiple insurers. Allstate provided our sample home with a $2,289 annual homeowners insurance quote.

• Allstate-$2289
• Travelers-$2296
• Liberty Mutual-$2520
• Farmers-$2662
• State Farm-$3411
• Average Annual Rate-$2635

Swimming pools and unacceptable insurance risks

The best insurance companies cover swimming pools and the liability that comes with them, but there are some restrictions.

• Almost all cities and towns, for example, require pool owners to install a fence or enclosure around the pool, the property, or both. If you don't have a suitable fence, your insurance company may deny liability coverage for pool-related incidents. Pools with slides and diving boards may also be excluded by your insurance company because they pose a higher risk of injuries and medical expenses.

Policyholders must also maintain the pool and drain it in the winter to avoid damage. Any damage caused by the policyholder's negligence will not be covered.