If you are considering adding a pool to your current home, you will need to reexamine the insured value of your  home and check if it can adequately cover the value of your new pool. Otherwise, you might need to obtain additional coverage.

If you are currently building a new house, you may want to review closely your homeowners policy particularly if you want to add a swimming pool within your property.

Be sure to disclose the pool to the insurance company or a claim could potentially be denied. A swimming pool is a potential liability and non-disclosure of relevant liabilities can even possibly be grounds for the cancellation of your policy. Certainly, this is something you would not want as it would leave you financially vulnerable if anything unfortunate occurs.

Policy coverage for the swimming pool

Swimming pools are generally considered by insurance companies as structures separate from the homes. The treatment of pools in home insurance policies is often similar to that of a detached garage, a tool shed or  a gazebo.

In terms of valuation, such structures, including the pool, are usually covered at ten percent of the aggregate home value. Of course, coverage amounts can be adjusted depending on how elaborate the construction is as that would affect the total value of the structure.

In the event that the pool suffers any damage due to causes covered in your policy, settlement of the claim could be up to the maximum percentage of the home value as assigned to the structure.

This is apart from the insured value of your dwelling, the home itself. If you have an expensive swimming pool and if you have other separate structures in your property that also cost you much to build, you may want to consider increasing your insurance policy to ensure adequate coverage for all your structures.

Damages to your pool that are typically covered by the policy

Most damages to your pool are typically covered by a homeowners insurance policy. The only exceptions are those that are specifically excluded in the insurance contract. For this reason, be sure to carefully read the provisions and exclusions stated in the terms and conditions of your homeowners policy.

For example, your home insurance policy may not cover damage to your pool because of freezing, pressure, or weight of ice or water. Therefore, if you're located in the colder areas, you will just have to take the necessary steps to properly "winterize" your pool to avoid damages.

Your homeowners insurance may carry a liability protection in the event of an injury while in your pool or at the poolside. Again, be sure to examine the terms and conditions of your policy to know where you stand and ask for clarification when necessary.

In addition, you may want to decrease your liability risks by taking some safety precautions for your pool. The following measures should help keep your pool safe:

1. Have a fence built around the pool area to prevent unauthorized use by other people. Remember, anybody who gets hurt while swimming in your pool even without your knowledge is your responsibility.

2. Do not leave children  unattended in and around the pool.

3. Make sure that your contractor has built your pool according to the local regulations. You may want to request the local authorities for a safety check of your pool upon completion and before allowing anyone to use it.

See also: Quick tips on choosing home insurance