Homeowners Insurance & Swimming Pools: What You Need to Know For Summer
Holly Wanegar, CFP®
Associate Vice President & Wealth Advisor
When you own a home, it’s necessary to have homeowners insurance. This policy protects the actual structure of your home, but it also includes the personal belongings inside your house. If you own a home with a pool, or what’s commonly known in the insurance industry as an “attractive nuisance,” you may need to adjust your insurance coverage.1
An attractive nuisance refers to anything around the home that could be a potential danger to children. Making sure you are fully covered when owning a property with a pool is essential. Now that it’s summer, here’s what you need to know about homeowners insurance and swimming pools.
What Damage Is Covered?
Homeowners insurance will cover damage to the actual structure of the pool from certain events such as fire, thunderstorm damage, hail or vandalism - similar to what your house would be protected against.
Events typically not covered by insurance include:2
- Water damage
- Regular neglect or disrepair
How much the insurance company will pay out depends on your specific policy and deductible. When signing up for homeowners insurance, it’s important to include the “build cost” of your entire property. This is the amount of money it would cost to rebuild your home and the surrounding property, including a pool. The cost of the pool will drive up the build cost of your home, meaning your monthly premium for homeowners insurance will likely be higher.
In-Ground vs. Above-Ground Swimming Pools
The type of pool you have does make a difference when it comes to insuring it. Some insurance companies will consider an above-ground pool as a piece of property and not as part of the actual build cost of your home. It will be covered in the same way as your belongings would be.
An in-ground pool is usually a more expensive item to have than an above-ground pool. Your in-ground pool will be listed specifically as a pool on your policy. Both will be covered under a homeowners insurance policy but classified under different parts.1
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Medical Coverage for Injuries or Drowning
Since a pool is considered a type of hazard or danger, there will be a personal liability section on your homeowners insurance policy. It usually covers up to a certain amount of legal fees if a guest is injured at your pool in addition to a separate amount of personal liability, depending on your policy. You can also take out extra insurance coverage in the form of umbrella insurance. This is additional liability insurance connected to your homeowners insurance.1
Pool-Related Safety Precautions
According to the CDC, children ages one through four have the highest unintentional drowning rates.3 The risk of children falling in and drowning is the primary reason why almost all insurance companies require that you have a fence around your pool area. There are also local and state laws in your town that may have regulations surrounding pool ownership. For example, you may be required to have a fence of a specific type or height surrounding your pool.1
Other good safety measures you may want to consider are installing lights around the pool area, making sure that the surrounding surface is non-slip and keeping a first-aid kit nearby. In addition to making your pool safer, incorporating these safety measures may make you eligible for a discount from your insurance company.
Many homeowners enjoy the perks of having a pool, from hosting family barbecues to taking a quick dip on a hot afternoon. Whether you’re purchasing a new home or looking to reevaluate your coverage, keep this important information in mind when it comes to ensuring your home’s pool.
If you’d like help in planning for your financial future, including risk mitigation, get in touch with us at Weiss, Hale & Zahansky Strategic Wealth Advisors and request a complimentary consultation. We’ll show you how we can help you create a strategic financial plan for you using our Plan Well, Invest Well, Live Well™ process. Contact us at (860) 928-2341 or email@example.com.
Presented by Associate Vice President, Wealth Advisor Holly Wanegar, CFP®. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Weiss, Hale & Zahansky Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. 697 Pomfret Street, Pomfret Center, CT 06259, 860-928-2341. www.whzwealth.com.
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