Does Adding a Pool Increase the Value of Your home?

By HUB SmartCoverage Team on June 16th, 2017


Many people fantasize about having a pool in their backyard. The concept makes for a pretty picture; cool drinks in a lounging chair, barbeques with the neighbours and late dips on hot summer nights. It’s all quite idyllic.


If you are thinking of turning your fantasy into reality, you should be prepared to ask yourself some pragmatic questions to determine whether or not it is worth the cost. How will this affect the value of your home? What will it do to your insurance rates? Is the cost of installing a pool worth the enjoyment you’ll get out of it?


The Cost and Value of Owning a Pool

In some areas of the country, especially those located in more mild settings, a pool may in fact add value to your home. On the other hand, homes with pools tend to spend more time on the market than those without, since some prospective buyers are scared off by the maintenance requirements.


What’s more is that you have to subtract the cost of installing the pool from any increase to your property value. The average in-ground pool is more than $25,000 to install. If the value of your home goes up at all, it is not likely to do so by that much. And then there is maintenance.


The cost of running an in-ground pool usually exceeds $1000 every summer. The utilities and chemicals really add up, plus any sort of problem you might encounter will lead to additional costs. A problem with the pH level? That’ll cost you. The pump dies? It’s not cheap to replace. There’s a tear in the lining? That an expensive problem to have.


Pools are expensive, there are no two ways about it. Even if one does increase the value of your home, which is not a given, it will not do so in equal proportion to the costs associated with it. And that’s before factoring in the insurance.


How a Pool Impacts Home Insurance Premiums

Installing a pool will change your home insurance premiums. In most cases, home-rebuilding cost evaluations can rise by a minimum of $50k with the addition of an in-ground pool. In addition to your evaluation going up, there will likely be a liability surcharge added to your coverage because a pool poses a drowning risk, especially to children.


The Verdict

A pool can add value to your home in the right neighbourhood, but any added value isn’t likely to exceed the sum needed to install and then maintain the pool. That means putting a pool in for the purpose of making money is a losing game.


A valid reason for installing a pool is that you expect to sincerely enjoy owning it. Installing a pool for financial gain just isn’t a smart investment. In many cases it will have a negligible impact on your home’s value, but be a massive drain on your finances.

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