Jill was house shopping and called us with a question when considering two different homes in Waco to consider. She wasn't worried about the shiplap that Chip and Jo Jo had put in during the remodel. No, Jill was being proactive when thinking about the expenses associated with her home purchase, and one of those was the cost of her homeowners insurance policy. She had heard from a friend that insurance premiums for homes with pools were more costly than for those that did not have a pool, so she called us before going to look at one home in particular. Jill didn't want to fall in love with the home if her insurance rates were going to be crazy expensive. And while we always caution Texans new and old that the insurance companies seem to have lost their mind recently with respect to homeowners policies, it's important to talk about individual factors that can change the liability risk on individual policies that can make them cost more.
Over the building boom of the last 40 years here in Texas, we have seen the amount of homes with swimming pools swell. Given the length of the Texas summer, everyone is looking for ways to escape what feels like an eternity above 100 degrees. And a pool seems like it can be just the ticket for those long, hot days. What many people don't always realize is that insurance coverage for pools is going to come with some very specific requirements due to liability exposure that home insurance providers don't really enjoy. So we thought it would be Texan of us to make sure that you understand what your swimming pool insurance requirements are before you buy! After all, you are likely similar to Jill and want your pool to bring relief and not regret. That's why it is important to understand how buying a home with/or installing a pool will affect your homeowners insurance.
What Am I Liable For?
When thinking about swimming pools from an insurance perspective, the insurance companies will use the phrase "attractive nuisance" to make you feel really good about that oasis in your backyard. And while that phrase made Jill squirm a bit, let's break down just exactly what it means. A big pool of water on your property is inviting for not just your family, but for those around you as well. Splashing around in five feet of water can cool you off and provide hours of fun. What could make that a nuisance?
If you are not following certain safety precautions, you could be creating a perfect storm of personal liability problems. Here is a list of safety measures that are commonly required by homeowners insurance companies before they will extend policy terms to you.
- Fence around the pool
- Self Locking Gate
- No Diving Boards or Slides
Most level-headed Texans understand the need for the fence and self locking gate. You don't want a young neighborhood kiddo wandering through your backyard and taking a faceplant into your beautiful pool. That never ends well and if you don't have the area secured, your personal liability coverage is not going to be happy with you. It is a tragic story that could have been prevented with just a little bit of effort. But that is just the tip of the iceberg where liability insurance is concerned. You also have to think about things that can cause injuries to welcomed guests as well.
Medical Bills & Injuries
If you are a Texan with children and a pool, there is a greater than zero chance that you're going to have friends and neighbors over at a minimum. It is always more fun to let the kids play with other kids in the pool. And this is where your liability protection can become more important to you. What happens if that neighbor slips and falls while running from one end of the pool to the other? What happens if all of the parents are hanging out on a long weekend enjoying a few beverages and someone happens to fall in? What happens if one of the guests slips on a diving board and hits their head?
All of these seemingly innocuous situations can turn into a headache in a hurry for you. Making sure that your policy limits on your homeowners insurance are maxed out for medical expenses and personal liability are one of the most cost effective ways that you can protect your financial future. For just pennies a day, the additional liability coverage that these two items add can make a headache go away rather than turning into a nightmare when someone lawyers up. When we explained this part to Jill, she began to see clearly whether or not she wanted to get the house with the pool or not.
Property Coverage
One other consideration that many Texas homeowners didn't think about until we had the great freeze of 2021 was how the standard home insurance policies would cover the pool and equipment. When we spent a week below freezing, many homeowners developed damage to their pools when pumps failed. The policy language in many standard homeowners insurance policies specifically excludes coverage for the equipment and some will even exclude coverage for your pool surface if it cracks due to ice damage. It's important to ask your insurance agent about these provisions when considering a policy or a home purchase.
The good news is that most homeowners insurance covers swimming pool structures and pool surfaces via your separate structures coverage on your homeowners insurance. That means if it is damaged from a storm or tornado, you can easily have it repaired or replaced even though it won't fall under your personal property coverage. Your coverage limits may need to be increased for separate structures coverage to make sure that your coverage level is enough to make sure that you can still enjoy your pool on those hot summer days rather than worrying about how to pay for repairs. Many Waco homeowners don't really contemplate how coverage for swimming pools works, they just assume that it does. That is why we TRUE Texas Home insurance to ensure that coverage types meet your needs.
Above Ground Pools
One quirky thing that we have seen some Texas homeowners do is to install an above-ground pool in the summer and not notifying their insurance agent. This can present problems on multiple levels. If your location isn't fenced and people have free access to your policy, you likely will not have coverage for a problem. If the insurance company is doing an inspection and notices the above ground pool that wasn't disclosed, they can actually terminate your coverage or require you to prove that it is fenced or taken down. That's a much bigger issue than insurance cost. So be sure to let us know if you have these plans in your future.
Do I Need Additional Coverage?
After we explained to Jill how her insurance covers swimming pools in general, she asked the great question of if she needed extra coverage to make sure that she was properly protected. While the insurance experts can explain the policy in detail, it is often best to secure additional liability protection. The reason for this is the additional risk that comes from having a large body of water on your property no matter how many safety features that you install or include. We recommend an umbrella insurance policy that provides an extra layer of protection if a tragic accident occurs. Everyone loves to enjoy your pool, but they will also turn angry if an unforeseen accident occurs there no matter how careful everyone was at the time. Layering an extra million dollars on top of your personal liability coverage from your homeowners can help ease concerns as well provide for legal expenses that you might accrue. This is true no matter the type of swimming pool that you have simply because of the risk of injury with pools..
How Much Will It Cost?
Will owning a pool cost more? Due to the liability, yes. And if you need additional amounts of separate structure coverage, it will tick up some more. Fortunately, even with the potential risk surrounding owning a pool, having a well-maintained and protected pool on your property can still be affordable, given your insurance carrier's requirements. What we see is that the average cost of homeowners insurance does increase with a pool, but it is typically not more than 5% to 10% at most. The bulk of the additional costs over 5% comes with fancy structures that need additional coverage. However, you won't want to sacrifice coverage for cost. Making sure that any pool related injuries are covered is vastly more important than trying to save a couple of bucks a month.
Get TRUE Texas Home Insurance
If all of this seems complicated, and Jill thought it was, you should speak with a licensed insurance agent at Insurance For Texans. As a local, independent insurance agency, we have great partnerships with a wide variety of insurance carriers that know the risks and price the coverage accordingly. We can find you the best home insurance while answering questions related to your specific pool on your property. We'll make certain you know what will satisfy your insurance carrier and that you are properly covered with the right liability limits.
Give us a call at 469.789.0220 or click the button below to get TRUE Texas Home Insurance today!