Turning Main home with a pool into a rental.

3 Replies

My brother owns a home with a pool. They want to turn it into a rental . He is afraid of the liability that comes with an in ground pool. What are his options? Can you safely rent out a house and have proper insurance coverage to limit your personal liability of a worst case scenario involving the pool? Thanks

Nathan,
I checked our markets for Dwelling/Fire policies (the way most companies write single family rentals). About half of the markets would not write a pool. He should check with his agent and with other independent agents.

I would suggest he price out umbrella policies. $1,000,000 to $5,000,000 limits.

@John Mocker  

Thank you John 

I'm not sure what company he uses for homeowners but they told him they wouldn't cover extra liabilities like a pool. They also said it was nearly impossible to find a company that would.  Unfortunately my insurance knowledge is limited (I view it as a necessary evil lol) but my understanding is that an umbrella would only cover after the initial policy limits run out, but if his main policy never covered it in the first place would the umbrella even offer any protection?  Regardless whether he gets an umbrella policy or not, half of the companies you represent would cover it. As long as he finds a company willing to include it he would be covered.  Is there a certain insurance phrase that he should ask for in the policy? For example a fire/dwelling policy including in-ground water hazard liability.

Insurance is one huge headache for me. It sounds like I want to exclude any properties with a pool in my future portfolio.  

Thank you again

Nathan,
First thing he needs to do is to find out if there is a company willing to insured the house. Make sure the Liability for the Pool is not excluded. He will need to shop around. Look for Independent agents that represent many companies.

Once he has a company(ies) willing to insure the property, then he can have them quote Umbrella policies. You are correct to assume that if it is not covered by the Dwelling/Fire Policy it is unlikely to be covered by the umbrella.