Swimming pools are a popular addition to many families' homes. If you're thinking of installing one on your property this year, it's important to have a conversation with your insurance broker before you dive in. This is because swimming pools can affect your home insurance rates.
For the many benefits swimming pools offer, they also have some associated risks. There are two main reasons why you may see this reflected in your home insurance premiums. Swimming pools:
- Increase the replacement cost of your home
- Increase your risk of liability
Replacement Cost
Just as a pool can increase the market value of your home, it also impacts replacement costs.
The cost of building an in-ground pool starts at $10,000, averages $35,000 and can climb to upwards of $100,000—depending on how many upgrades or luxuries you add during the process. Anytime you make an extensive addition to your property, you're going to want to check with your insurance provider to ensure you have adequate coverage in the event something were to happen to your home.
Increased Liability
While the replacement costs are important, insurers are also concerned about the increased risk of liability that can come with owning a swimming pool. Liability insurance is part of your home insurance policy and protects you in the event someone is accidentally injured or killed on your property.
In Ontario, private swimming pools contribute to 10% of all drowning fatalities, according to Lifesaving Society Canada, and are responsible for numerous injuries each year, with small children being especially at risk.
While no pool owner wants to think about these dangers, being prepared can help prevent accidents from happening. In order to ensure your home insurance policy covers the increased liability that comes with owning a pool, your insurance provider may require you to:
- Add a gated fence around the pool. Some municipal by-laws actually require 4-sided fencing around private swimming pools, including the City of Toronto
- Avoid alcohol consumption near, and especially in, the pool
- Ensure pool perimeter, including pool decks, are clean and well-maintained
- Have adult supervision at all times
Not following the guidelines of your insurer may negate your liability coverage.
Talk to us
If you have any insurance questions about your current swimming pool or installing a swimming pool, please give us a call at 1-866-523-4111. We are happy to help.