Homeowner’s insurance protects you against potentially expensive financial liabilities related to your home and property. Insurance companies determine the cost of your insurance premiums according to the likliehood that you will need to file a claim. Some property components, however, may increase your risk factor.
For example, in New York, having a swimming pool can raise your homeowner’s insurance premium significantly. Whether or not a homeowner’s insurance policy will pay for repairs needed to your swimming pool depends on your insurer and the manner in which your pool becomes damaged. However, all New York insurance policies will pay for liability expenses related to injuries on your property – including those that occur in or around your swimming pool.
Having a swimming pool means that there is an increased likliehood that someone could become injured on your property. Your homeowner’s insurance will cover liability, but probably not the amount you would need to protect you from a lawsuit should someone become injured in your pool.
Instead, you’ll need to purchase additional liability coverage – either by raising the liability limits on your primary insurance policy or by purchasing an umbrella policy, which supplements your primary policy by $1 million or more. The additional coverage will cost you more in premiums, but could save you millions of dollars in the long run.
If the premiums are more than you would like to spend, there are ways you can lower them without affecting your coverage. For example, installing safety components, such as a fence around your swimming pool, a pool alarm or an electronic pool cover, could decrease the risk of a swimming pool accident. Ultimately, the best way to ensure you are getting the very best price for your New York homeowner’s insurance is by shopping and comparing the rates of various insurers in your state.