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Does Owning a Pool Affect Your Home Insurance Rates?

With summertime here, you may be wishing you had a backyard swimming pool. There’s nothing like enjoying a dip in a cool pool on a hot summer’s day. Imagine drinking umbrella drinks on a lounge chair at the side of the pool and cooling off with a graceful cannonball. Why travel to paradise when you can enjoy it in your backyard?

A pool can be something for the entire family to enjoy, but it’s not without its costs. And not just the obvious ones; installing a pool will also impact your monthly home insurance premiums. 

Does installing a pool add value do your home?

Depending on where you live, owning a pool may actually boost the resale value of your home, but in many cases it won’t. Simply put, most people either love or loathe pools – there’s very little middle ground. When it comes time to put your home on the market, homes with swimming pools tend to spend more time on the market than those without. Some prospective are scared off by the added work and cost of maintaining a pool. There’s also the liability issue, which we’ll discuss later. For now, let’s discuss the more traditional costs of a swimming pool.

First, there’s the cost of installing it. Installing an in-ground pool doesn’t come cheap. You can expect to spend at least $25,000 to install a swimming pool. Then there’s the cost of using your swimming pool. If it has a heater, that could cost you a pretty penny in utilities. You’ll also need to buy chemicals, such as chlorine, to ensure the pool is safe to use. It’s a good idea to budget at least $1,000 towards operating your pool on an annual basis. You’ll also need to budget for maintenance and repairs. The pump can die or the lining can tear so it’s a good idea to budget ahead of time.

Before installing a pool, ask yourself if it's worth it. If it’s to help boost the resale value of your home, there are better, more affordable ways. If you’re hoping to enjoy it with your family, that’s when it can make sense, as long as you’re willing to do the extra work that comes along with it.

How does a swimming pool affect your home insurance rates?

A pool isn’t without its risks. If you have a swimming pool in your backyard, it’s important to ensure you have the proper home insurance coverage. If someone were to be injured using your swimming pool, you could be sued and held personally liable.

Whether you’re buying a home with a pool or you’re installing one yourself, you’ll want to tell your insurance provider right away. You’ll need a home insurance policy that specifically includes coverage for pools.

By installing a pool, you’re likely to see your home insurance rates increase. That’s because your insurance provider is taking on added risk. You’ll also want make sure your liability coverage is sufficient. This is important in case a guest gets hurt.

You can take preventative measures to minimize the risk of claims. For example, you can install a “no diving” sign and ensure that there’s a fence that’s locked at all times around the pool. It’s also best to ensure children at supervised at all times when in the pool.

If you have questions about home insurance, speak with an insurance broker!

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