In 2009, dog bites accounted for 33% of all homeowners liability claims. The cost in 2009 was $412,000,000 up 6.4% from 2008. The average claim amount was $24,840. Of the more than 4,700,000 people bitten annually, some 900,000 require medical care – half of the bite victims are children. Since 2003, the cost of claims has risen some 30%.
The standard Homeowners Policy in Connecticut provides coverage for the dog owner under the Personal Liability section of the policy. Liability for the actions of a dog is imposed on the dog owner. The typical Personal Umbrella Policy will provide additional Personal Liability protection including coverage for a dog bite situation.
Given this background, insurance companies in Connecticut have heightened concern to limit their exposure as much as possible. They are restricting the types of dogs that they will insure. In some cases, an additional premium charge is made for the existence of a dog exposure in the household. Once a dog has bitten someone, the insurance company will in all likelihood cancel the homeowners policy unless the animal is destroyed.
Most Homeowners Policy applications ask if the applicant owns pets or exotic animals and, if so, what breed(s). Some insurance carriers may limit their underwriting by 10 or more breeds – including any mixture of the prohibited breeds. Other carriers may be more liberal and limit the number of undesirable breeds to as few as three breeds. If a homeowner acquires a prohibited breed after application and the insurance company becomes aware of the existence of the animal during the policy term, this can be grounds for non-renewal of the policy even though a loss has not occurred. Once a loss (bite) occurs, the insurance company will in all likelihood non-renew the policy – one bite is usually it.
The approach now is in this writer’s view an overreaction. A more creative effective approach needs to be developed by insurance companies to avoid the use of the proverbial sledge hammer (cancellation – non-renewal). As an example, studies show that dogs are three times more likely to bite if they are not neutered. Most dog licenses clearly indicate if an animal has been neutered. A veterinarian certificate is easy to obtain. Yet, no insurance company to date has adopted neutering as a viable underwriting tool to allow underwriting flexibility.
This is a HEADS UP! If you are about to get a new family pet, contact your insurance agent to be sure that your future insurance coverage will not be jeopardized if “Fido” or “Fluffy” happen to have the wrong DNA.
The CDC (Centers for Disease Control and Prevention) advises the following to limit potential dog bites:
- Consult a Professional to determine a suitable breed for your home.
- Spend time with the dog before buying or adopting.
- Make sure that children are not fearful or apprehensive about a dog. Never leave infants alone with a dog. Use caution if there are children in the home.
- Have the animal spayed or neutered.
- Socialize the dog with people and other animals.
- Stop children from disturbing a sleeping or eating dog.
- Play non-aggressive games – no tug-of-war.
- Avoid new situations that you are unsure of with your dog.
- Don’t approach a strange dog and avoid eye contact with a dog that appears to be threatening.
Good owners make for good dogs!
