Do You Have Enough Coverage for Your Pool?

Do You Have Enough Coverage for Your Pool?

Summer is officially here and with it comes the natural urge to take a dip in some cool clear water.  You may even decide that having a pool of your own is a good idea.  But before you start digging and picking outliners, talk with your insurance carrier to find out what type of coverage may be needed for your home’s newest upgrade.

In some cases, mortgage lenders require an increase in liability coverage when homes have swimming pools.  If your home already had a pool when you moved in, you may not have realized that you already have the increased liability limits.  However, when you are adding a pool to your property, you will want to find out what type of increase is available.

Even without the requirement by your mortgage lender, having increased limits of liability might be a good idea considering the increased risk a new pool could bring to your home.  Imagine having a pool party and a guest slips and falls, breaking her arm.  Your standard homeowners insurance will pay the bill, but only up to the limits you have set forth on your policy.  In a lot of cases, that amount may not be enough, and you will be forced to pay the bills out of your pocket.

You can upgrade your standard homeowners policy with increased limits of liability that will, of course, increase your premium as well.  Another option is to purchase an umbrella insurance policy that will cover you past the limits on your homeowner’s policy once they have been reached and exhausted.   Umbrella policies are fairly inexpensive compared to the coverage they offer.  A typical $1 million umbrella liability policy may cost about $150-$200 in premium per year.

Talk with your mortgage lender and then give us a call to find out more about your new pool and how your insurance will cover you in the event that anything goes wrong.

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