Does Adding a Pool or Hot Tub Affect My Home Insurance?
As Summer arrives in Nova Scotia, some homeowners will plan exciting backyard upgrades, like the installation of a refreshing swimming pool or a relaxing hot tub. These items can add value to your home but also bring a new level of enjoyment to your life. However, it’s essential to understand that they can also have implications for your home insurance that you might not have considered.
If you install a pool or hot tub, here’s what you need to know about how they can affect your home insurance coverage, premiums, and liability.
1. Pools and Hot Tubs Increase Liability Risk
The main insurance concern regarding pools or hot tubs is liability. From slips and falls to accidental drownings, these backyard features pose a greater risk of injury—especially for children and guests.
As a homeowner, you’re responsible for ensuring a safe environment. If someone is injured in or around your pool or hot tub, you could be held liable. That’s why most insurance providers will recommend increasing your personal liability coverage when you install one. Personal liability coverage is a component of your home insurance that protects you if you’re found legally responsible for an accident that causes injury to someone or damage to their property.
What you can do:
- Discuss with your insurance provider the option to increase your liability limit to at least $1 million.
- Consider purchasing an umbrella policy for added liability protection, especially if you frequently entertain guests.
2. Property Coverage May Need to Be Adjusted
While pools and hot tubs are typically covered under the “other structures” or “dwelling” portion of your home insurance policy, it’s essential to confirm how your provider classifies them.
In-ground pools are often considered part of your dwelling, while above-ground pools and hot tubs might be classified as personal property or detached structures. This distinction affects the amount of coverage you have in the event of damage from fire, storms, or vandalism. To learn more, read more about Home Improvements and How They Impact Home Insurance.
Additionally, note that home insurance typically does not cover wear and tear or damage resulting from maintenance issues. Cracks due to freezing, pump malfunctions, or water chemistry issues may not be covered unless caused by a specific insured peril.
What you can do:
- Inform your insurance provider about the installation.
- Review your dwelling and detached structures coverage limits.
- Inquire whether special endorsements or riders are required for comprehensive protection.
3. Your Home Insurance Premiums May Go Up
It’s true—adding a pool or hot tub may lead to higher home insurance premiums. Why? These additions increase both the value of your property and the risk profile of your home. Premium increases vary depending on your insurer, the type of pool or hot tub, and the safety measures you’ve put in place.
What you can do:
- Shop around or request a quote update from your current insurer before installation.
- Implement safety features such as: fenced enclosures with locked gates, pool covers, alarms or motion detectors, and anti-slip surfaces around the area. Taking these steps could offset some of the premium increase.
4. Safety Measures Matter—To You and Your Insurer
Insurance companies often require homeowners with pools or hot tubs to meet specific safety standards. Not complying with these requirements could lead to a claim being denied—or worse, your policy being cancelled.
Common requirements include:
- A fence at least 4 feet high with a self-latching gate
- Secure pool or hot tub covers
- Clearly posted safety rules
- Compliance with local bylaws and building codes
Some municipalities in Atlantic Canada may also require permits or inspections before installation.
What you can do:
- Check with your municipality for regulations.
- Ensure you have documentation of all safety features in place.
- Keep maintenance records in case of future claims.
Before breaking ground on a pool or installing that hot tub, make your first call to your insurance broker. They’ll help you understand how your coverage might change, what safety measures are required, and whether additional coverage or endorsements are needed.
At Bauld Insurance, we’re here to help you enjoy your home improvements with peace of mind. Contact a Bauld Insurance Advisor today—we’re always happy to help you make informed, confident choices for your home.
