Why having an indoor pool will increase your home insurance

This article has been updated from a previous version.

Installing an indoor pool can drive up your home insurance premium. It boosts your property’s value, but also adds risks like water damage, higher energy and upkeep costs, and safety concerns.

Insurers take all of this into account when calculating your rate. To avoid gaps in coverage or surprise claims, it’s important to understand how a pool affects your policy and take steps to reduce those risks before building.

How will an indoor pool increase your home insurance premium?

Installing an indoor pool can affect your premium in a couple ways, as it changes the scope of what your home insurance company is protecting.

“You’re likely to see an increase in your home insurance just because of the increase in the value of your property,” says Anne Marie Thomas, director of consumer and industry relations at the Insurance Bureau of Canada. “In addition to that, as with any swimming pool, there is likely going to be another increase because of the added liability.”

Indoor pools don’t necessarily reduce risk compared to outdoor ones — they simply shift it indoors. Slips, trips, and falls can happen just as easily, and any sudden water damage from leaks or equipment failures must be factored into your coverage. 

While most water damage is preventable with regular maintenance, insurers still account for the potential cost of repairs and claims.

Read more: How to lower home insurance rates by keeping your home in good shape

Should you opt for increased liability coverage for an indoor pool?

When you choose to build an enclosure around your pool or install a pool in a pre-existing room, you’re taking on more risk as a homeowner. 

As for whether you should increase your liability coverage, “this really depends on the customers’ needs and lifestyle,” says Sonja Denobrega, associate vice president of General Insurance Underwriting at TD Insurance. 

If you entertain people by your pool regularly, or just like the peace of mind extra insurance brings, it’s not a bad idea to increase your liability coverage. 

However, “most homes that have an indoor pool would be classified as a luxury home and would likely be part of a specialty insurance market,” says Thomas. “Someone who is in that bracket typically would have an excess liability policy in place anyway.”

You may find your policy holds enough liability coverage for the frequency with which you use the pool or for the number of people that use it on a regular basis. Discussing these details with your insurance provider is a good way to determine whether it does.

Read next: 4 easy ways to save on home insurance

Can regular indoor pool maintenance lower the impact on your home insurance premium?

While conducting routine maintenance on your indoor pool won’t necessarily lower your insurance rate, it can sway the coverage a company is willing to offer you.

“Regular maintenance can impact customer eligibility,” says Denobrega. “They’ll want to know your maintenance plan, the safety measures around the pool (for example, if there’s a non-slip surface or safety railing), and because it’s an indoor pool, how the moisture in the home is being managed.”

Keeping up with maintenance can prevent you from having to make a claim and therefore prevent your rate from increasing. It can also help you avoid gradual water damage that wouldn’t be covered under your policy.

Learn more: Can your home insurance provider stop covering your water damage claims?

What does indoor pool maintenance involve?

Indoor pool maintenance involves a range of tasks that help prevent damage and keep your insurance coverage in good standing:

• Replacing old vinyl pool liners
• Acid washing and replastering cement pools
• Checking for cracks in the pool
• Checking for blockages in the filter system
• Ensuring proper use and function of the indoor pool cover (likely automatic)
• Ensuring your dehumidification system maintains a 40% to 60% humidity level

Communicating with your insurance provider about the routine tasks you carry out to maintain your pool “makes you a more attractive risk to an insurance company because you’re negating potential losses,” says Thomas. This can give you access to more competitive coverage options when comparing providers. 

When making changes or renovations of any kind to your home, be sure to notify your insurance provider. 

What to ask your insurance provider

Before installing an indoor pool, it’s worth having a frank conversation with your insurance provider. Ask how the addition will affect your coverage, and whether your current policy is equipped to handle the added risk. 

Key questions include:

• Does my policy offer enough liability coverage for an indoor pool?
• Will I need a specialty or luxury home insurance plan?
• How does moisture control factor into my coverage?
• What kind of maintenance records should I keep?
• Will the pool’s location inside the home affect my premium?

Getting clear answers upfront can help you avoid gaps in coverage and ensure your indoor pool is properly protected.

If you’re looking for a cheaper rate than what’s offered, you can always shop for a more affordable home insurance rate that accommodates your addition.

“Let your insurance professional know you have an indoor pool,” says Thomas. “You want to be sure that, in the event of a loss, no claim is denied because they were unaware.”