You want an in-ground swimming pool. Or a trampoline. Or a German shepherd. But you've heard the insurance horror stories that come along with a pool, or trampoline or a dog that providers consider 'dangerous.' Fear not: You can still enjoy your pool or trampoline or 'dangerous' dog and have a great relationship with your insurance providers – by finding ways to mitigate hikes in your premiums.
Why are these features so polarizing to the relationship between home insurance providers and homeowners? One word – risk. All increase the risk of a large claim against your home insurance policy – which makes providers nervous.
Here's why these features are risky and what you can do to make them friendlier to home insurance providers.
Swimming pools
Fact: 10 people drown every day in the U.S., according to the federal Centers for Disease Control and Prevention. Of the 10, 2 are children 14 or younger. That's the primary – but not the only – danger from a swimming pool. Factor in injuries from diving, falling, and other routine pool activities and you can see why insurers get so anxious.
Swimming pools legally fall into the category of 'attractive nuisances.' That means it's a dangerous condition that by its very nature could be enticing to children – even trespassers. It also means that you can be held responsible if one of the trespassing children suffers an accident or injury on your property.
What you can do:
- No diving board or slide. These two features can cause serious injuries, and many providers won't insure your home if your pool has these.
- Lay down the law to invited guests. No running. No alcohol. No children using the pool without supervision. No one swimming alone.
- Build a fence. This is a must because of the 'attractive nuisance' doctrine. The fence must be tall enough to dissuade children from climbing over it, and there must be a self-locking gate to keep trespassers out.
- Buy safety equipment. Make sure you have rescue poles, ring buoys, and a fully charged phone at the pool at all times.
- Increase your personal liability insurance. This is the part of your policy that kicks in if someone is injured on your property and decides to sue. The Insurance Information Institute recommends that you increase your coverage limits to $300,000 or more. You should also consider an umbrella policy, which can boost your liability coverage to $1 million or more.
Trampolines
Again, insurance companies look at the facts – trampolines can be magnets for injuries. The American Academy of Pediatrics warns against home trampolines, pointing to a study that cites nearly 98,000 trampoline injuries in 2009 that resulted in 3,100 hospitalizations. About 37% of the injuries were to children 5 or younger.
And yes, trampolines also are considered attractive nuisances.
What you can do:
- Add safety equipment. You need netting around the trampoline, and any rails or springs should be padded. These might not prevent injuries, but they can reduce their severity. Inspect this equipment often.
- Build a fence. You'll need to govern who uses the trampoline. A tall fence with a locking gate will keep trespassers out – particularly the young variety.
- Enforce some rules. No jumping unless an adult is present. Restrict jumpers to one at a time: The chance of injury is three times greater when more than one person is on the equipment, according to the AAP.
- Increase coverage. Follow the same guidelines as for a pool.
Dangerous dogs
Insurance providers typically label the following dogs as 'dangerous' :
- Pit bulls and Staffordshire terriers
- Doberman Pinschers
- Rottweilers
- German shepherds
- Chows
- Great Danes
- Presa Canarios
- Akitas
- Alaskan Malamuts
- Siberian huskies
- Wolf-hybrids
Here's why they care: In 2013, insurers paid more than $483 million for dog bite claims – more than a third of all claims dollars paid during the year, according to the Insurance Information Institute (III).
What you can do:
- Socialize your dog. Don't play aggressive games such as tug of war, which can encourage aggressive actions. Instead, play fetch and other nonaggressive games.
- Have your dog spayed or neutered. This generally reduces aggressive behavior.
- Build a fence. Keep the dog in a fenced-in area so it won't roam the neighborhood. Keep the dog on a leash when outside the fence.
- Boost liability coverage. Again, it's a good idea to bolster your coverage limits. You don't want to come up short if there is a claim.
What you shouldn't do
Don't hide your pool, trampoline, or dog from your insurance provider in an attempt to keep premiums down. You're playing with fire – if there is a claim involving one of these and your insurance carrier doesn't know, you'll be on your own.
You can have risks, but it's important that you take measures to minimize them. And it's also vital that you keep your insurance carrier in the loop. Let him or her know about the potential added risk – and about measures you've taken or will take to mitigate it.
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