Do I Need Swimming Pool Insurance?

When homeowners add a swimming pool to their property, they are taking on a plethora of risks.

Swimming pool insurance provides a financial safety net for pool owners who would otherwise be trapped in a high-risk injury (or worse) financial and legal liability scenario.

"A swimming pool is a staple part of many families' summer," said Nick Schrader, an insurance agent with Texas General Insurance in Houston, Texas. "When the sun is beating down on you, it appears that a poolside barbecue is a great idea." However, there are some risks to having a swimming pool at home, and they could cost you."

Swimming Pool Insurance Tips

It takes several steps to protect yourself from potential liability associated with swimming pool ownership. Here's how to get the most out of your swimming pool insurance and how to work within your community's and insurance company's rules to get the pool insurance that's right for you.

  1. Establishing the Scene. The first step is to determine the preventive measures required to reduce the risk of having a swimming pool on your property, which usually entails working with local community statutes and under the supervision of your insurer.

While every community and insurance policy is different, these precautions should be taken ahead of time to ensure you qualify for the best swimming pool insurance. Do this before the pool is finished and ready for use.

— Make certain that the necessary fencing and property protection are in place. A pool fence alarm, a perimeter infrared detector, a pool safety net, and an underwater motion detector are all recommended. To mark off the deep end of the pool, a floating buoy is also a good idea.

— Install security alarms around your home and pool to warn you – and emergency medical personnel – of any potential problems.

— Install a lockable and secure pool cover in the off-season or when you're away from home overnight.

— It is recommended to have the necessary medical safety equipment on hand, such as a throwing rope, a safety hook device, a first aid kit, and a poolside medical alert system that contacts 911 immediately (preferably voice-activated) in the event of an emergency.

  1. Begin looking into swimming pool insurance policies. With safety and security measures in place, you can begin researching insurance policies.

"Be aware that pool insurance coverage is not a standalone product," Schrader said. "It is a supplement to your standard homeowner's policy." Depending on whether the pool is above or in-ground, it may include coverage "A" for the dwelling or coverage "B" for other structures."

The policy should cover lawsuits "in case you're sued for an incident involving your pool, specifically for personal liability and medical payments to cover others' injuries near or in your pool," according to Schrader.

  1. Ask your insurer the right questions

Because swimming pool accidents can and do happen, you should always have adequate liability coverage so that if an accident occurs, the homeowner will be protected against the cost of a lawsuit.

"Remember that liability coverage protects you from the cost of a lawsuit when someone other than a resident of the house is injured," Alan Himmel, a public claims adjuster at Florida Allstar Public Adjusting in Fort Lauderdale, Fla., said. "As long as the injured person is not living in the house, the settlements in these types of insurance claims end up going to the injured party."

When there is a swimming pool, Himmel recommends increasing the liability coverage on your homeowner's policy.

"Unusually, some homeowners' policies will come with no or insufficient liability coverage," he observed. "You should review your policy and consult with your agent." Never assume that because the coverage is on the policy, it includes liability coverage."

How Much Does Swimming Pool Insurance Cost?

According to the Insurance Information Institute, proper swimming pool-related liability protection should cost between $300,000 and $500,000. Depending on the size and features of both your property and your pool, that figure can rise or fall.

Your insurance agent will discuss the cost of adding liability coverage or increasing your policy's liability limit with you.

"The cost will vary depending on the carrier and risk, and of course, the more coverage you purchase, the more you will pay," Himmel explained.

According to one industry study, the annual approximate cost of swimming pool insurance is $1,200.

How can insurance help mitigate swimming pool risks?

Insurance can help mitigate the risks associated with swimming pools in a variety of ways. Linda Chavez, founder and CEO of Seniors Life Insurance Finder in California, breaks down those risks as follows:

Physical security - Liability coverage is typically included in homeowners insurance policies, which can help protect you if someone is injured while swimming in your pool.

Property damage - Most homeowner's insurance policies will cover pool damage caused by weather or other events.

Liability – Liability coverage can help protect you from financial damages if someone is injured while swimming in your pool.

What are the specific pool policy features homeowners should get with a pool?

According to Chavez, there are several characteristics to look for in a pool policy. These should be at the top of your list for swimming pool insurance:

  • Coverage for the pool's physical structure - This coverage can assist you in repairing or replacing your pool if it is damaged by weather or other events.
  • Pool equipment coverage - This coverage can assist in the repair or replacement of pumps, filters, and other pool equipment.
  • Liability coverage – Liability insurance can help protect you from financial loss if someone is injured while swimming in your pool.
  • Medical payments coverage - If someone is injured while swimming in your pool, this coverage can help pay for medical expenses.
  • Personal property coverage - This coverage can assist in the replacement of any personal belongings damaged or destroyed while in your pool.
  • Replacement cost coverage - If your pool is damaged or destroyed, this coverage can help cover the cost of repairing or replacing it.
  • Rental reimbursement - If your pool is damaged or destroyed, this coverage can help reimburse you for the cost of renting a temporary pool.
  • Towing and labor coverage - If your pool is damaged or destroyed and needs to be removed, this coverage can help cover the costs of towing and labor.
  • Trip interruption coverage - If your pool is damaged or destroyed, this coverage can help reimburse you for the cost of your interrupted travel plans.

Biggest Mistake Homeowners Make With Swimming Pool Insurance

While trap doors are common in pol ownership, the most common error is not having adequate liability coverage or none at all.

"This frequently occurs when shopping for insurance and telling the agent that you want to pay as little as possible," Himmel explained. "Of course, no one wants to overpay for insurance, but having a potentially dangerous feature like a pool in your backyard means you must also adequately protect yourself from potential lawsuits."

Himmel added, "There is an old adage that works for swimming pool insurance." "What you pay for is what you get."