Does Installing a Pool Impact My Homeowners Insurance?

By Sandy Hess

July 15, 2024

Installing a swimming pool at your home can provide fun for the entire family, especially on hot summer days. Before making such a large investment, it's important to understand this purchase will likely increase your homeowner's insurance rates. While the impact may be minimal, it still affects the overall cost of maintaining a swimming pool.

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Many insurance companies consider certain types of pools "attractive nuisances." But this fun addition to your backyard doesn't have to be a nuisance to your wallet. Learn more about pools and home insurance rates.

Does Installing a Pool Make Your Home Insurance Rates Go Up?

Yes, installing a pool on your property will likely increase your home insurance rates. This is because it creates an additional risk of damage to and injuries on your property. In fact, there are thousands of swimming pool accidents every year. Even with the best security features, accidents can still happen. Insurers understand these added risks, so they increase your insurance rates.

What Types of Swimming Pools Require Insurance?

Whether you install an in-ground or above-ground pool, you should contact your insurance company to add it to your policy. The type of homeowner's insurance coverage you need depends on the type of pool you're installing.

Above-Ground Pool Insurance

Insurance coverage for above-ground swimming pools depends on the type of pool you're installing. Permanent swimming pools you intend to use year after year fall under your "other structures" insurance protection. On the other hand, temporary pools often fall under your personal property coverage.

Inground Pool Insurance

If you're installing an inground pool, your insurance coverage depends on how the pool is constructed. If the pool shares the same foundation as your home, it'll likely be covered under your dwelling coverage. On the other hand, if your inground swimming pool is completely separate from your home, the insurer considers it a "separate structure" or "external structure."

What Does Homeowner's Insurance Cover For Pools?

Homeowner's insurance provides two types of protection.

Damage to Pool

Your pool coverage may pay for repairs or even a pool replacement, depending on the type of damage. Typically, insurance covers damage caused by fire, lightning, hail, winds, vandalism and explosions. However, this insurance may exclude certain types of damage, such as those caused by earthquakes, flooding, freezing water, regular wear and tear or maintenance issues. The amount the insurance company will pay depends on your specific policy, your deductible and the extent of the damage.

Liability Protection

Home insurance with a pool can also provide liability coverage. If someone is injured in or around your pool, the insurance may cover any medical bills and legal costs, as well as other related costs. These claims are handled on a case-by-case basis but can protect you and your family from a costly lawsuit.

Umbrella Policy

As a pool owner, consider investing in an umbrella policy. This added insurance protection covers costs that go over and above your standard insurance limits. It's important to talk to your insurance provider to make sure you have the right level of homeowner's insurance.

How Much Will Installing a Pool Increase My Home Insurance Rates?

In many cases, the impact of a pool on homeowner's insurance is minimal. You can expect to pay just $50 or $75 more per year (CAD 69 to CAD 103). However, your specific pool insurance cost depends on the type of pool you're installing, the pool's value and whether you install any safety features.

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How to Mitigate These Effects

Learn Insurance Requirements for Swimming Pools

Insurance companies refer to swimming pools as "attractive nuisances" that could entice children and increase the risk of accidents. You can minimize the risks of an attractive nuisance by following a swimming pool insurance requirement, maintaining the pool regularly and installing various safety features, such as:

A fence around the perimeter
Self-locking gate or gate alarm
Automatic safety cover
Signs warning of the potential dangers and pool rules
On-site life preservers
Accessible safety equipment

Lack of maintenance to your pool can also increase the likelihood of accidents happening. Make sure the pool liner is free of tears. Check the condition of pool add-ons like diving boards and slides. Ensure the pool deck isn't cracked or broken, or that the ground around the pool is free of debris.

Contact Your Home Insurance Provider

As the policyholder, understanding the impact of a pool on your homeowner's insurance ensures you secure the right coverage to protect yourself and your family. It’s recommended to contact your homeowner's insurance provider or an insurance agent before installing a swimming pool to find out exactly how much it will cost to insure.

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