Do you insure your AG Pool?

[CoffeeBean]

Thanks to everyone on this thread I contacted my insurance company, USAA, and updated my policies to reflect the existence of the pool. I noted on one of AnnaK's recent posts that soem insurance companies feel that if the deck is connected to the pool it's considered part of the structure. Our AG pool is surrounded by a deck which is the third and lowest tier of our back decking system. Yet USAA considers the deck as part of the house structure but not the pool itself. (If the pool wasnt' there I'd have a big deck with a big hole in the middle.) I thought this was interesting. We do have it fenced but lets face it, if some juvenile delinquent is determined to get in, only 6' chain link and concertina wire may deter them. I'm not ready to go that route yet.

[ElleM]

I just recently spoke with State Farm insurance in Pennsylvania and they told me that State Farm no longer covers any kind of above ground pool damage. Her wording to me was, "there's an exclusion clause."

[badutahboy]

I know a little. I was an insurance company exec in a former life. Your HO policy has an automatic coverage extension for detached structures; the amount is a percentage of the main dwelling coverage and varies by company and type of policy, i.e., a standard fire policy will have a lower coverage extension than a package policy. Most HO policies are package policies.

The presence or absence of a building permit does not negate coverage but it will impact the amount you can recover in case of loss. If, for instance, you have replacement cost coverage and want to invoke that, you will have to replace or repair the damages under current building codes. If you don't invoke replacement cost, the insurance company will depreciate the structure based on its age, materials used, and workmanship, and you may come in at under your deductible.

Look at the declarations page on your last renewal notice. It will show the amount of coverage for 'outbuildings' or 'detached structures'. That's the amount available, in theory, to replace or repair anything that's not physically attached to the main dwelling. If you have a deck attached to the house and the pool is connected to the deck, then all of this is considered the main dwelling. Make sure the amount of coverage is appropriate for what you have.

Most insurance companies require that a pool is fenced or that the property containing the pool is fenced, and that the gate has a locking mechanism. While this may not be spelled out in the contract per se you will have received an endorsement with one of your renewal notices which amends the contract. Insurance companies tend to slip these things in and they always limit your coverage.

However, swimming pools are an 'attractive nuisance' which present an absolute liability. Fenced or not, if you have a serious bodily injury to a third party (not a resident of the premises) your liability coverage will pay. They'll try to deny and they'll give you grief but they will have to pay.

Hope this helps.

A couple of additions to what Anna said:

1. You can eliminate the insurance company's depreciation of your pool by making sure you add two coverages to your policy... you want to add "replacement cost coverage" and "code update coverage". If you don't you if you have these, contact your insurance agent TODAY. you'll be so glad you listened to me when you have a claim!

The coverages do the following:

Replacement cost coverage: As Anna said, the insurance company will depreciate every item you own, based on age and condition, and will pay based on that depreciation. For example, electronics are generally depreciated 30%, even if they're less than a year old. That means the insurance company would only pay you $1400 for that $2000 big screen you bought in january to watch the super bowl on. With replacement cost coverage, they pay you the depreciated value, but when you replace it, you submit your receipts and they pay you the difference. This can absolutely work out in your favor. I had a 13 year old big screen, which I bought from my mom for $200, and the insurance company paid me $2700 towards a new TV.

Code update coverage: It does exactly what it implies. If your house was built to an outdated code, your insurance will only rebuild it to it's prior condition. If there have been updates to the code, you will have to pay for them out of pocket. My basement had been framed with 2x2's, and code now requires 2x4 framing in basements. This update alone would have cost me about $10,000 out of my pocket, had I not had these coverages.

I had a fire in my house 2 years ago, $260,000 claim. We did the math after moving back into the house, and these two coverages saved me approximately $75,000 out of pocket.


Also, FWIW, I contacted my agent yesterday and he said Farmer's Insurance automatically covers your pool on your policy, but your yard has to be completely secure from the street. As long as your back yard is surrounded by a 6 foot fence, you have no issues.

[mohawk]

As far as I know, our pool is not covered. 2 years ago we had a tornado come through our area and it picked up our trampoline and threw it into the neighbors house. Their homeowners covered their house but when I submitted the tramp as part of our claim, the insurance company (ours) said they'ed pay for it, but if I replaced it they would drop our insurance. Since then I haven't wanted to rock the boat.

[ElleM]

Ours isn't covered, either. State Farm (in Pennsylvania at least) will not cover any damage to above ground pools. They'll cover if someone gets hurt, but not the pool itself. I went round and round with them just a month or so ago. They suggested I ask a pool dealer if they offer any insurance that can be purchased, lol.

[badutahboy]

Ours isn't covered, either. State Farm (in Pennsylvania at least) will not cover any damage to above ground pools. They'll cover if someone gets hurt, but not the pool itself. I went round and round with them just a month or so ago. They suggested I ask a pool dealer if they offer any insurance that can be purchased, lol.

Suggest to your agent that it'd be easier to find a new insurance company than it will be to find a third party policy just for the pool. They'll work to make exceptions pretty quickly when faced with a loss of business.. at least, if you have enough stuff insured with them.

[ElleM]

Suggest to your agent that it'd be easier to find a new insurance company than it will be to find a third party policy just for the pool. They'll work to make exceptions pretty quickly when faced with a loss of business.. at least, if you have enough stuff insured with them.

Doubtful. State Farm hasn't even settled all it's New Orleans claims under threat of huge lawsuits. I doubt they'd feel threatened by little old me threatening to leave, lol, even though I do have a lot insured with them. The agent can't change corporate policy, anyway. He can't give me something he doesn't have.