Probably the last thing you’re thinking about when you get a dog is insurance. If you’re not adequately covered, your dog may take a bite out of your wallet.

This is less the issue of health matters, even though cost of routine exams, medications and inoculations can give you pause. It’s more about the liability you take on for injuries your pet may cause. And that’s a risk you really want to guard against because even though claims started to decline in 2018, claims costs are ticking upward, the payouts are skyrocketing.

Data from the Insurance Information Institute should have you checking your homeowner’s or renter’s policy to see if your insurance coverage for dogs is sufficient.1 (And getting or it adding to your umbrella policy might be worth looking into, too.)

  • 4.5 million Americans are bitten by dogs each year, with children aged 5 to 9 most at risk.
  • 6.6% fewer claims were reported in 2018 – 17,297 – than in 2017 – 18,522.
  • Average cost per claim of $39,017 was up by 5.3 percent in 2018 from $37,051. Average cost per claim nationally has more than doubled since 2003, thanks to higher medical costs, settlements, judgments and jury awards.

If you have a dog, it pays to review your homeowner’s or renter’s policy to make sure you are adequately protected:

  • Make sure your insurer is aware you have a dog, including its breed and any related claims history.
  • Some insurers will either restrict or exclude certain breeds, like pit bulls and Rottweilers, or have different policies for them. Depending on the state and the carrier, you may get denied insurance for having such a breed or your approval may involve a higher premium or restrictions.
  • Make sure your policy protects you for broader “dog-related injury” claims versus merely dog bites. Exuberant pets can be as worrisome as “mean” breeds – causing injuries by happily greeting and knocking down passers-by, for example.

Last, but by no means least, you should assess the liability and medical limits of your standard homeowner’s and renter’s policies. With payouts for dog injury claims continuing to rise, you have to ask if you’d be prepared to cover the gap between a potential judgment and your liability limit – especially if your pet is a high-risk breed.

Umbrella insurance is designed to protect you from major claims and lawsuits, kicking in when you reach the limit on the liability coverage in your homeowner’s or renter’s policy. It covers you if you are sued and need to pay legal fees, or if you are found liable and need to pay damages of any kind.

To speak to an expert about if you’re adequately covered, Contact HUB today.

1 https://www.iii.org/article/spotlight-on-dog-bite-liability