Home Insurance: Above-Ground Versus In-Ground Swimming Pools

Your Greensboro home insurance coverage, an essential part of your family's risk mitigation plan, protects your home, your personal possessions and your assets if you're ever held liable for someone getting injured while on your property. A standard Greensboro home insurance policy consists of several components including:

• Dwelling coverage
• Coverage for other structures
• Personal property coverage
• Liability coverage

If you own a swimming pool, it can have an effect on one or more of these policy components, depending on the specifics of your policy and the way your pool is classified by your insurer.

An “Attractive Nuisance”

To your insurer, a swimming pool is what's known as an “attractive nuisance”. This means that it's a hazardous object that may appeal to or attract children but may also cause them harm. It's one more item added to your insurance policy that may cause you to have to increase your coverage, particularly in view of the liability implications a swimming pool represents.

Pool Classifications

A residential swimming pool may be classified in one of three ways:

1. An in-ground pool
2. An above-ground permanently installed pool
3. An above-ground temporarily installed pool

Your Greensboro home insurance policy will generally cover damages to your swimming pool, but how it does so and the limits on claim amounts will depend on how your insurer classifies the pool. Policies cover your pool for damage from the same perils as the dwelling coverage component of your insurance contract. These may include perils such as fire, lightning, hail, wind, explosions, vehicle collision, vandalism and more. Take note that exclusions to coverage include earthquakes, floods, wear & tear (such as a ripped lining) and neglect.

In-ground pools may be considered as part of your home, in which claims payments will be made from your dwelling coverage, or as other structures, in which claims are paid from the other structures portion of your policy. Why this matters is because some companies consider an in-ground pool as part of the main home structure, while others consider it an external structure similar to a shed, a fence or a detached garage.

Most damage claims for other structures have a maximum payoff limit of 10% of your dwelling coverage amount. Above-ground temporarily installed pools, on the other hand, are considered personal property, which typically has a higher payout limit than for other structures. Personal property coverage is often capped at $100,000.

Switching Your Home Insurance Carrier

There are any number of reasons you may be thinking of switching your home insurance carrier. Experts agree that it's a good idea to take a look at your homeowner's coverage every couple of years. Some mistakenly believe that you must wait until your current coverage is ready to expire before changing insurers. In reality, you have the right to change your homeowner's insurance at any time.  In North Carolina Homeowner’s Policies are cancelled on a “pro-rata” basis meaning that you will get 100% of all unused premiums returned. If you've paid for a whole year's worth of coverage and cancel seven months in then you should receive an amount equal to five months premium back..

Why Switch?

Here are some of the reasons you may be contemplating switching your current homeowner's insurance carrier:

• You've been comparison shopping and found a company that can provide you with a better price for the same level or better coverage. Tom Needham, a leading Greensboro home insurance provider, is a broker capable of diving deep into a long list of home insurance providers to find you the coverage you're seeking.
• Additional discounts may be available from a new insurance provider. Some companies even give a special discount discounts to those willing to bundle their coverages such as homeowner's, auto, umbrella, boat, RV and  life insurance.
• Perhaps you had a less than ideal experience with your insurer while going through the claims process. Poor service is a major cause of individuals quitting their insurance company and switching to another.
• You may be looking for additional protection (such as earthquakee coverage) not available through your present insurer or an insurance policy that is less restrictive that your current coverage.
• You may be buying a new home and want to take this opportunity to comparison shop what's out there.

When to Switch

If you're buying a house, you should start shopping for homeowner's insurance as soon as your buy offer is accepted by the seller. If you're switching insurance providers while still living in your current home, make sure your new coverage is activated before canceling your existing coverage. If your primary reason for switching companies is to get a better price, make sure you give your current Greensboro home insurance provider an opportunity to renegotiate your rate.