Insurance for pool on a rental?

Question

I have a client who is looking to rent out their home but, is concerned about liability due to their pool. Does anyone know if there is some type of insurance or protection for landlords with a pool? Could the owner be sued if someone drowned in the pool?

Alex L. · Answer

Speaking as someone who used to work in the insurance industry, the owner can indeed be sued if someone drowned in the pool due to negligence (the negligence in this situation would be the owner's failure to secure the pool).

So, just make sure the insurance co. knows that the property has a pool, and ensure that it's properly secured -- that means a lockable gate around the pool (you'll see this more with in-ground pools, some properties will literally have a separate gated pool area within their fenced in yard), or a door with a latch to the deck of the above-ground pool (if there's no deck, there are some pool stairs that have a lockable "door" or something on it to keep people from climbing). This is pretty much non-negotiable from an insurance liability standpoint -- the pool must be secured, one way or another, as unattended wandering children who could drown are the primary concern here.

Having a fenced-in yard is beneficial, and the insurance co. may accept simply having a fence enough to consider the pool secured. However, to really ensure safety from liability, you'll ideally want both a fenced in yard, and a secured pool. If a neighborhood kid hops the fence, swims, and drowns, the property owner likely won't be held liable as the fence was adequate security, and the neighborhood kid had no business being there. However, if the kid is a tenant of the property and has regular access to the backyard, and while playing in the back unattended one day decides to go swimming alone and drowns, the property owner can absolutely be held liable because they didn't properly secure the pool.

EDIT: As an additional measure, I would also recommend that the property owner or manager ensures that the tenant is instructed on how to properly secure the pool when not in use, and have them sign some sort of documentation stating that this instruction was provided, and that they understand the pool must be secured at all times when not in use. That way, god forbid something awful happens, the tenant won't be able to cast blame on the owner/manager for not showing them how to secure the pool.

Hope that makes sense.

Bill B. · Answer

Regular insurance has been a non-issue, not even an extra $50/year. Keep the 300/300k limits. I did have to switch umbrella policy companies this year. After 10+ years with USLI they decided this year they would have a 1 million dollar limit for pool properties. Not enough. So I switched. Was a good reason to shop for cheaper prices for more coverage.

Mike Link · Answer

Thanks Alex this is helpful!