Swimming pools are very popular with a lot of homeowners, but they also present some possible risks for you as well. While you may think that having friends over is a very hospitable thing to do, you may also be assuming a significant financial risk in doing so. In addition, your pool can unknowingly be facing liability from strangers since believe it or not, pools are attractive to uninvited guests or “pool hoppers” such as children in the neighborhood, and you could even be held liable for injuries to these uninvited guests! The American Red Cross reports; drowning is the second-leading cause of unintentional injury-related death for children ages 1 to 14 years.

Your insurance plays a key role in protecting you if you own a pool. Your homeowner’s policy should have liability in it covering bodily injury and liability protection in the event of a claim. Coverage is most likely to be provided if all of the risks are known prior to a claim. So make sure your insurance agent knows that you have a pool since a swimming pool will increase the risk of property damage or a liability claim.

A typical homeowner’s policy also covers property damage to a home and additional structures. Your in-ground pool usually is considered an “additional structure” just like a sheds or detached garages. Above-ground pools may be considered “personal property” and insured under that section of the homeowner’s policy. So it is important that your agent knows what type of pool is being insured.

In summary, if you own a pool, sit down with your independent agent and check the amount of homeowners’ property and liability coverage you have, and make sure it is adequate. Your agent can help you determine the proper type, and amount coverage needed. In addition, you may want to also go through the rest of the policy since you are reviewing it.

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If you’re like most Americans, your home is your largest investment, so you know how important it is to protect it. You probably take safety precautions and have insurance that will cover you in case of a loss.

But are you fully protected? Chances are, no. You probably are running the risk of having to pay money out of pocket to rebuild your home after a loss, to replace stolen items or to settle a liability lawsuit.

Consider the following questions to determine if you are, like most homeowners, underinsured. 

1. Are you working at home? Do you have a home-based business? If so, you’re not alone—40% of Americans operate a home-based business that provides their sole means of living or extra income. Most people don’t know that their standard homeowners insurance provides very limited coverage for business property and generally no liability protection for business use of the home. You can get this coverage added to your homeowners policy by an endorsement or by purchasing a separate business policy.
2. Do you have recreational vehicles? Watercraft, snowmobiles, all-terrain vehicles and similar recreational vehicles add spice to your family’s life. But you should know that liability coverage for these type vehicles is not provided by your homeowners insurance. Accidents happen. So add this critical coverage to your policy by an endorsement or addition.
3. Did you build an addition recently? If so, did you update your homeowners policy? Most Americans neglect this important step, leaving their family vulnerable to significant out-of-pocket expenses to rebuild after a loss. New additions to the structure and grounds may increase your liability and coverage needs. So, if you’ve added a pool, another bedroom or a home theater, you best inform your insurance agent so that you can be adequately protected
4. Will your policy pay to rebuild or replace your home? The recent ballooning of home prices has lead to a corollary increase in the cost of building materials. These increases directly impact the amount of insurance homeowners must carry to avoid costly penalties for being underinsured. Get a home appraisal now so you can determine how much homeowners insurance you need to rebuild or replace your home.
5. Do you own an historic home? If the answer is yes, your home poses a unique requirement on your homeowners insurance. That’s because older homes do not meet the stringent building codes in effect in most towns and cities today. If there is a loss, your old home will have to be rebuilt to the new code. A standard homeowners policy limits increased construction costs and the lost value of property. Again, add this coverage as an endorsement to your policy.
6. Do you have expensive items or a collection? Most standard homeowners policies limit coverage for high-value items like expensive jewelry, art collections, antiques and other collectibles. Think about how valuable these items are to your family—both monetarily and emotionally—and decide if you need to secure additional coverage either by an endorsement to your homeowners policy or through a specialty policy.
7. Do you have medical payments coverage? Most homeowners don’t carry this protection, often called “goodwill” protection. It provides payments for medical care for people injured on your property (regardless of fault) up to three years after an accident. In today’s lawsuit-happy society, medical payments coverage could save you tens of thousands of dollars. Get this affordable coverage added to your homeowners insurance policy today.
8. Check for leaks regularly. If there’s a leak in your house, then you’ve got problems and probably damage to your home, too. To prevent a lead from mushrooming you should regularly inspect your home. Look for discoloration in ceilings, floors, walls and tiles. Check for water in the basement and around appliances. Check the foundation. And, check indoor hose connections in the laundry room, bathrooms and kitchen. Repair damaged or suspect areas immediately.
9. Get an alarm system. Unfortunately, there are crooks among us who are looking to take away your prized possessions. Arm yourself! If you don’t own an alarm system, get one. It is a great deterrent against break-ins and could save you money on your homeowners insurance. Test it regularly—at least monthly—to ensure it is operating properly. And, most importantly, use it. An alarm system will not dissuade burglars if it’s off!
10. Got a pet? Fido sure is cute. But he could cost you a lot of money if he bites the neighbor’s kid or the mailman. Pet bites and attacks are one of the most common causes of homeowner liability claims. Insurance companies judge certain breeds to be more dangerous. Some, such as pit bulls, may be excluded from coverage altogether. Before adopting a pet check with your insurance company to ensure it will be covered by your homeowners insurance.

By addressing these issues now you can prevent costly claims and save money on homeowners insurance premiums over the long term. And, your family will have peace of mind knowing that your homeowners insurance will be there no matter what life and Mother Nature throw at you.

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