Thinking about getting a pit bull, Rottweiler or German shephard? Buyer beware. These breeds, along with several others classified as “vicious,” could cost you your homeowners insurance.
In January, the Insurance Information Institute in New York released findings that said dog bites accounted for about one-quarter of all homeowners insurance liability claims, costing more than $321 million in 2003. The latest numbers, from 2002, reported the average dog bite claim cost insurers more than $16,000. About 50 percent of the more than 4.7 million bites occur on the dog owner’s property, according to the Centers for Disease Control and Prevention.
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So what are the insurance companies saying?
Jean Allen, a communications consultant at the Allstate corporate offices in Pennsylvania, said a person would not be eligible for homeowners insurance if they own a breed of dog that has a history of bites.
If a policyholder gets a “vicious” dog after being approved for insurance, there will not be an additional surcharge, said Allen. However, if there is a claim in the future, Allstate will not renew the policy, she said.
Patricia Stadnick, communications officer at Amica Mutual Insurance Company in Lincoln, said there is no specific policy in place for issuing homeowners insurance for people with notoriously vicious dogs.
“It may very well be part of the consideration” of offering insurance, she said, noting that all plans are individually unwritten.
Mark Nadeau, co-owner of Blais Insurance in Lincoln, said if an animal is classified as “vicious,” a company does not have to offer insurance.
Animal owners who are declined homeowners insurance because of their animal’s classification have the option of getting insurance with the Rhode Island Fair Access to Insurance Requirements (FAIR) Plan, said Nadeau.
Jim Pappas, vice president of underwriting for the Rhode Island and Massachusetts FAIR Plan, said most insurance companies do not charge a higher rate because of the presence of a dog. A company either will not offer insurance or will offer it at a regular rate, he said.
The FAIR Plan will offer homeowners insurance subject to the first bite, said Pappas, after that the company will offer homeowners insurance that will not cover that specific animal, he said.
The rates offered by the FAIR Plan are “on the high end,” according to Pappas because they write polices for “higher risk” instances that other companies do not want to insure.
