Indoor pools are luxurious. But they could spell a higher home insurance rate

Putting an indoor pool in your home offers an elevated sense of luxury, but being able to take a relaxing dip any time of the year while avoiding the outdoor temperature doesn’t come without added responsibility. Not only can indoor pools introduce costly, year-round heating, ventilation, and maintenance expenses — they can also impact your home insurance premium.

Because an indoor pool is considered part of your home, preventative maintenance and safety measures are crucial in avoiding a home insurance claim. Accounting for added risk within your home insurance policy — if it’s not already included — is also key. Before having your pool installed, it’s best to understand how it can affect your home insurance premium and what may help keep your rate under control — indoor oasis and all.

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 aren’t really any safer than outdoor pools. They simply bring the risk of injury, slips, trips, and falls inside your home instead of outside it. And any sudden water damage due to unforeseen incidents outside of regular wear and tear need to be factored into your premium as well. However, most water damage is preventable through regular maintenance.

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, vice president of personal insurance underwriting policy at Aviva Canada.

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.

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.

Indoor pool maintenance can include:

• 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 provide you with more selection when looking for an insurance provider you’ll be happy with.

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