Old pool insurance problems are more common than most homeowners realise. An unfenced, unregistered or structurally deteriorating pool can raise your annual premium, trigger a coverage exclusion or, in a claim situation, give the insurer grounds to reduce or void a payout. The practical fix is to understand what your insurer is actually looking at, disclose accurately, and then price removal against the ongoing insurance risk. For the NSW pool register side of this, see our guide on swimming pool register deregistration. This guide is general information only, not financial or insurance advice.
Quick answer (BLUF)
Home insurers in NSW treat a swimming pool as a higher-risk feature: it increases public liability exposure, it can damage adjacent property if it leaks, and it creates a drowning hazard that drives up liability limits. An unfenced, unregistered or visibly deteriorating pool is the worst position to be in. The ASIC Moneysmart home and contents insurance guide explains general disclosure obligations, and the Australian Financial Complaints Authority (AFCA) handles insurance disputes if a claim is refused.
What insurers ask about pools
Most home and contents insurance applications include a question about whether the property has a swimming pool. Answering “yes” is not the end of the world, but it does prompt underwriters to consider:
- Whether the pool is fenced to the standard required by NSW law
- Whether the pool is registered on the NSW Swimming Pool Register
- The approximate age and condition of the pool
- Whether it is currently in use and maintained
Providing inaccurate information at the time of application can void your policy if a claim arises. If your situation has changed since you last renewed, and you have not updated your insurer, that is a risk worth addressing before a claim event.
Fencing non-compliance and cover
NSW law requires all swimming pools to be surrounded by child-resistant fencing that meets the requirements under the Swimming Pools Act 1992 and the applicable Australian Standards. A pool that is non-compliant, whether because the fence is damaged, gates are faulty or the fencing does not meet current standards, is a known liability.
From an insurer’s perspective, a non-compliant fence signals that the homeowner is not maintaining the pool safety features required by law. If an injury or drowning occurs and the fence is found to be non-compliant, the insurer may argue that the homeowner’s failure to maintain compliant fencing contributed to the event, potentially reducing or voiding the public liability payout.
Compare the cost of bringing your fencing up to standard with the cost of removal. Our guide on pool fencing cost versus pool removal cost walks through the numbers for both options. For an older pool that is already deteriorating, re-fencing may be throwing good money after bad.
Register status and disclosure
NSW requires all swimming pools to be registered on the NSW Swimming Pool Register. An unregistered pool is technically a breach of the Swimming Pools Act, and it is also a potential insurance disclosure issue.
If your pool is not on the register and you have a claim that involves the pool, the insurer may use the non-registration as evidence that you have not been maintaining the pool appropriately. It does not automatically void a claim, but it can be used in the assessment process.
Our guide on NSW swimming pool register deregistration explains both how to register an existing pool and how to remove a pool from the register after it has been removed from the property.
| Pool status | Insurance disclosure position | Risk level |
|---|---|---|
| Registered, compliant fence, maintained | Clean disclosure, standard premium | Low |
| Registered, fence needs minor work | Disclose, get fence repaired promptly | Low-moderate |
| Unregistered, fence non-compliant | High disclosure risk, possible exclusion | High |
| Abandoned, no fence, deteriorating | Very high risk, possible claim refusal | Very high |
| Removed and deregistered | No pool to disclose, reduced premium | Eliminated |
This table is a general guide only. Speak to your insurer and read your Product Disclosure Statement for the specifics of your policy.
Structural damage and public liability
A pool that is visibly cracking, leaking or subsiding creates two distinct insurance concerns. First, structural damage to the pool itself is typically excluded from standard home and contents cover: pools are usually classed as a structural fixture and covered under building insurance, but deterioration over time is generally excluded as a maintenance issue rather than an insurable event.
Second, and more seriously, a leaking pool can damage the neighbouring property. If your pool has been leaking into the next-door yard, your public liability cover is what responds. See our guide on pool leaking into a neighbour’s yard for the sequence of steps to follow. If the insurer finds that you knew about the leak and failed to act, your claim may be reduced.
Our guide on unsafe and abandoned pool safety also covers what happens when a pool has become a hazard and the owner has not addressed it.
Removing the pool vs re-fencing: a cost view
The insurance risk from an old pool never fully disappears through maintenance alone: there is always a premium loading, always a public liability exposure and always the possibility of a crack or leak developing. Removal eliminates the insurable pool risk permanently.
Against that, re-fencing and maintaining a functional pool avoids the upfront cost of removal and retains an amenity that may have value. Our guide on whether removing a pool adds value to your home explores the resale dimension, and the companion piece on selling a house with an old pool covers what buyers focus on.
The honest comparison is: add up the ongoing cost of insurance loading, maintenance, registration compliance and fencing upkeep for the remaining time you own the property, and compare it with the one-off cost of removal. For an older pool in poor condition, the numbers often favour removal sooner rather than later.
Our full pool removal service and partial pool removal and fill-in option both permanently remove the pool risk from your property. Get a free quote to understand the removal cost in your situation.
What to say when you renew
When you renew your home insurance with a pool on the property, you can take a few practical steps:
- Confirm the pool is registered and that your insurer has the correct registration status on file.
- Check whether your fence has been inspected recently and is compliant. If there are defects, note them and get them fixed before or shortly after renewal.
- Ask your insurer explicitly whether the pool creates any exclusions or conditions in your policy.
- If you have been planning to remove the pool, get a quote before renewal: knowing the cost helps you decide whether to act before the next renewal period.
If you believe a claim has been incorrectly refused or reduced due to pool-related factors, the Australian Financial Complaints Authority (AFCA) is the external dispute resolution body for insurance complaints. AFCA is free to use for consumers and binding on member insurers.
FAQs
Does having a pool automatically increase my home insurance premium?
It can. Insurers treat a swimming pool as an increased liability risk, which often results in a higher public liability component in the premium. The exact loading depends on the insurer, the pool’s age and condition, and the answers you give in the application.
Can an insurer refuse to pay out on a claim because my pool fence was non-compliant?
If non-compliance is found to be a contributing factor in a claim, the insurer may argue a reduction or exclusion of the payout. This is most likely to apply in a personal injury or drowning claim where the fencing condition is directly relevant. Read your policy’s Product Disclosure Statement carefully.
If I remove the pool, do I need to tell my insurer?
Yes. You should notify your insurer of material changes to the property, including pool removal. This typically reduces the premium and removes the associated liability loading. It also triggers the need to update the pool’s status on the NSW Swimming Pool Register.
What does AFCA do if I disagree with an insurer’s decision on a pool claim?
AFCA reviews the complaint independently and can order the insurer to pay a claim or vary their decision. The process involves lodging a complaint online, providing your documentation and waiting for AFCA’s determination. It is free to consumers and the insurer is bound by the outcome.
Is an unregistered pool always a problem for insurance?
Non-registration does not automatically void your policy, but it is a disclosure issue and can be used by an insurer in a claim assessment. Registering the pool on the NSW Swimming Pool Register is a simple step that removes this risk.
Related reading
- Pool fencing cost versus pool removal cost
- NSW swimming pool register deregistration
- Unsafe or abandoned pool safety in NSW
- Selling a house with an old pool
- Pool removal council approval NSW
- Pool leaking into a neighbour’s yard
- Does removing a pool add value?
- Full pool removal service
- Partial pool removal and fill-in service