Get one of their sloppy kisses and it’s easy to see why 46.3 million American households own a dog, as the American Pet Products Association’s 2011-2012 National Pet Owners Survey reports.
But that affectionate pooch can turn into an expensive liability should it bite someone, which is why insurance experts recommend any dog owner purchase additional coverage when they bring their new pet home, whether it’s a teeny toy Schnauzer or a massive Great Dane. If the dog turns out to be a biter, they recommend increasing homeowners insurance coverage even more.
Dog bites account for more than 1/3 of all homeowners’ insurance liability claims, costing the industry $413 million in 2010, says Loretta Worters, spokesperson for the Insurance Information Institute.
According to the National Center for Injury Prevention and Control, 337,526 people in the U.S. were injured by dog bites in 2009, up slightly from the previous year. Many of those victims were children. However, the number of Americans hospitalized as a result of a dog bite has increased by nearly 100 percent from 1993 to 2008, with 9,500 receiving serious dog bites in 2008, according to a December 2010 report by the Agency for Healthcare Research and Quality.
Many states have passed laws with stiff penalties for owners of dogs that cause serious injuries or death. III reports 1/3 of states hold owners strictly liable for their dogs’ behavior. Some municipalities have laws requiring additional coverage if a dog has a history of biting, as much as $300,000.
Homeowners’ insurance policies typically will cover up to $100,000 in costs caused by a dog bite, which on the surface seems like an ample amount, considering that the average cost of a dog bite claim in 2010 was $26,166, according to the Insurance Information Institute.
However, that $26,000 could quickly balloon into hundreds of thousands, even millions, of dollars, should the injuries be serious or fatal, or if a lawsuit is filed. Any amount not covered under an insurance policy would be the owner’s responsibility.
Worters says there are two factors contributing to rising costs associated with dog bites: medical costs and the size of settlements awarded by juries.
Worters recommends purchasing an umbrella policy of $1 million to $10 million in addition to a regular policy. She says the first $1 million will cost between $150 and $300 a year in addition to a regular policy’s cost; each additional million dollars of coverage will cost another $75 a year.
“(An umbrella policy) is relatively inexpensive and it protects your home, everything. It’s worth the cost to protect your assets,” Worters says.
She says legal costs can add up even if the dog wasn’t at fault, or didn’t even bite someone.
“Sometimes people will claim your dog bit them and sue you. Even though it’s an unwarranted lawsuit, there will be legal costs, which your insurance policy will pay,” Worters says.
