Is an Inground Pool Considered Other Structures?

Property ownership involves various classifications for different components of a home, including external additions like an inground pool. Understanding how these features are categorized is important because their classification can influence financial aspects such as insurance coverage, property tax obligations, and overall market valuation. This article explores how inground pools are typically classified across these different areas. The treatment of an inground pool can vary significantly depending on the specific context.

Defining Other Structures

“Other structures” generally refers to buildings or constructions on a property not physically attached to the main dwelling. These structures are typically separated by a clear space. Common examples include detached garages, sheds, gazebos, guest houses, and fences.

An inground pool is generally considered a permanent improvement to the property and is often classified as an “other structure.” This classification acknowledges its fixed nature and integration into the land, unlike portable above-ground pools.

Insurance Classification

For homeowners insurance, inground pools are typically covered under Coverage B, which pertains to “other structures.” This coverage protects detached structures on your property from specified perils, such as fire, hail, wind, and vandalism. The coverage limit for other structures is commonly set at 10% of the dwelling coverage (Coverage A) limit, though this percentage can vary by insurer.

Beyond damage to the pool structure itself, an inground pool significantly impacts the personal liability portion of a homeowner’s policy, known as Coverage E. Pools are often deemed “attractive nuisances” by insurers due to the heightened risk of accidents and injuries. This increased risk typically necessitates higher liability coverage limits. Homeowners may also consider an umbrella insurance policy, which provides additional liability protection.

It is important to inform your insurance provider about an inground pool. Failure to do so could lead to inadequate coverage or policy cancellation. While standard policies cover many perils, they typically exclude damage from freezing water if the pool is not properly winterized, as well as damage from general wear and tear or neglect. The presence of a pool generally results in higher insurance premiums due to the increased replacement cost and liability risk.

Property Tax Assessment

Inground pools are generally considered permanent home improvements that add value to a property, leading to increased property tax assessments. Unlike movable above-ground pools, inground pools are fixed structures integrated into the land. This permanency means they are typically included in the calculation of a property’s assessed value.

The amount an inground pool can raise property taxes depends on its size, quality, features, and local assessment practices. Tax assessors evaluate the property’s market value, which incorporates permanent improvements. An increase in assessed value directly translates to a higher annual property tax bill.

Assessment methods vary by local jurisdiction. However, permanent additions contributing to a home’s overall worth will affect its taxable value. Homeowners can inquire with their local tax office to understand the specific methodology used in their area.

Real Estate Appraisal

When determining a property’s market value, real estate appraisers account for inground pools as an amenity that contributes to the overall desirability and utility of the home. Appraisers assess the “contributory value” of the pool, not simply its installation cost. This value is derived from market evidence by analyzing comparable sales of similar homes, both with and without pools, in the same market area.

The added value an inground pool brings is not always dollar-for-dollar with its installation cost. The value depends on various factors, including local climate, regional market demand, the pool’s condition, size, features, and whether it represents an over-improvement for the neighborhood. In some markets or for smaller lots, a pool might even have a limited or negative impact if it reduces usable yard space or appeals to a smaller buyer pool.

Appraisers focus on what buyers are willing to pay for a pool in a specific market. While a pool can enhance a property’s appeal and potentially increase its market value, its actual financial contribution is determined by how the market perceives and values this specific feature.