Homeowners Insurance and Your Pets
Dogs are part of the family for many American households. In fact, a whopping 63% of houses in the U.S. now contain at least one dog. Without a doubt, dogs offer companionship and protection that is invaluable to their owners. However, it’s no surprise that dogs cost quite a bit to own. You have to pay for food, veterinary expenses, kennels, treats, grooming, etc. What most dog owners don’t know, though, is that dogs come with one hidden expense—they can affect your home insurance premiums.
How Insurers View Dogs
Just like if you were to put a pool in your backyard, having a dog is a risk factor that figures into the underwriting process. Insurers aren’t really concerned that your pooch will destroy the house or tear up the backyard, but they are very concerned that the dog may bite someone. In other words, insurers view dogs as a liability with regard to your home insurance policy.
Dog Bite Facts
The Centers for Disease Control and Prevention report that there were close to five million dog bites in 2005. These bites resulted in $317.2 million in home insurance claims. Of course, no one would know this better than your postal carrier. The U.S. Postal Service reported over 3,400 dog-related injuries in 2004 alone. That means, on average, 11 postal carriers are injured by dogs every day!
Dog Bite Liability
Both home and renters insurance usually cover dog bite liability, as long as you disclose ownership of the dog when you apply for the policy. You may be charged higher premiums or even be denied coverage if you own certain breeds of dogs. These decisions are based on how often dog bites occur with the breed, the size of the dog (meaning how much damage they can do), and the reputation of the breed. Breeds that are very unpopular with insurers and that will be very costly to include on your policy are pit bulls, Rottweilers, Siberian huskies, German shepherds, Doberman pinschers, malamutes, Great Danes, chow chows, Saint Bernards, and wolf hybrids.
Be Honest
Some homeowners try to save on premiums by not disclosing the presence of a dog in the home. This does not make any financial sense because any liability claim involving the dog would be denied if you failed to disclose this information. Intentionally omitting information from your application is also grounds for policy cancelation, which would severely hurt your finances in the long run. The best policy is honesty, and you might even find that disclosing a dog won’t have an appreciable effect on your premiums. The effect the dog has on your policy will depend on your insurer, your coverage levels, and the type of dog.
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