Up to 47% of American households have a dog, and for insurance organizations, these households represent a risk. In 2013, property owners insurance policies paid out some $ 483 million in dog bite liability claims.


Obviously, insurance coverage organizations would rather not be shelling out hundreds of millions of dollars more than dog bites. But what are they carrying out to reduce costs and how does this have an effect on dog owners?


Home owners insurance protects property owners from liability claims. In the case of dog owners, this signifies your policy could cover the costs if your furry buddy harms a person.


“As a lot as we adore our pets, dogs are unpredictable and can act aggressively with seemingly no warning and in spite of the fact that they have been our household pets for years,” says Linley Jones, president of the Georgia Trial Lawyers Association and founding partner of the Linley Jones Firm in Atlanta.


How huge is the difficulty?


Each and every year, dogs bite about 4.5 million men and women in the United States, and 885,000 of those people need healthcare consideration. About half are young children.


“Dog bite claims are a huge supply of liability claims against property owners, if not the No. 1 supply of claims,” says Dr. William Warfel, professor of insurance coverage and risk management at Indiana University’s Scott College of Business.


In 2013, these claims accounted for one-third of all paid home owners insurance coverage liability claims dollars, according to the Insurance coverage Details Institute.


The charges related with a dog bite can be extensive—potentially encompassing emergency space therapy, reconstructive surgery and even emotional therapy. In 2013, the average cost per claim was $ 27,862. That number has risen considerably more than the final 10 years, from $ 19,162 in 2003.


Do you personal a restricted breed?


Insurance firms mitigate their risks in 2 ways: by raising costs for these who pose the biggest risk, or by denying coverage altogether. This has largely meant enacting breed-specific policies targeting certain dog breeds that insurance coverage businesses believe are implicated in more than their share of dog bite claims. For owners of these breeds, such as pit bulls, Rottweilers and Dobermans, insurance can be costly or challenging to receive.


Understandably, several pet owners and advocacy groups believe these policies unfairly discriminate against responsible pet owners and their well-educated dogs. For them, insurance coverage companies must be much more focused on preventing dog bites from all dogs rather than just those designated, possibly erroneously, as more dangerous.


Laura Hagen, deputy director of advocacy for the Massachusetts Society for the Prevention of Cruelty to Animals, says, “The MSPCA’s adoption centers see straight the impacts of insurance organization policies targeting certain breeds of dogs, either since dogs are surrendered when a homeowner can’;t safe a policy or when adopters do not take into account those breeds prohibited by their insurance company.”


Not all insurance coverage firms discriminate against complete breeds. Some judge pets on a case-by-case basis, seeking at the animal’s history and proclivity to aggressive behavior.


What you need to have to know


As a dog owner, you could believe wholeheartedly that Rover wouldn’t harm a human, but a lot of individuals are caught off guard when they are the topic of a dog bite liability claim, or when they or their young children are harmed by yet another person’s pet. NerdWallet reached out to a number of authorities to get their take on what dog owners should know about home owners insurance.


1. Owning a dog may possibly make it challenging to uncover insurance coverage.


With breed-specific policies, you may possibly spend much more for insurance or have a difficult time finding a organization to cover you.


“Breed-particular policies also develop substantial issues for renters, who uncover several property owners’ hands tied by their insurance policies and unable to supply very good renters a home—simply since of a dog’s breed and regardless of whether a specific dog has no history of biting,” Hagen says.


2. You shouldn’t lie to your insurance firm about your dog.


The insurance company will ask about your pet(s) in an effort to determine their danger. “Given the magnitude of the exposure on this concern, the application for insurance coverage will contain various inquiries—what type of dog, has a claim been filed previously,” says Warfel.


Warfel says that although the queries could indicate reluctance to cover you, honesty is the ideal policy. Lying could have considerable repercussions. “Depending on the response, the carrier may possibly decline the application. Being truthful is important,” he says. “Failure to disclose could be grounds for voiding a policy.”


3. You need to understand how dogs influence your policy.


Getting informed is tantamount to guaranteeing you are covered if one thing must occur. “Dog owners need to confirm that their property owners insurance policy covers injuries arising from their dogs and that there are no exclusions that would prohibit coverage for a dog-associated incident,” Jones says. “Read your policy and speak to your insurance agent if you are unsure.”


In numerous American households, pets are deemed family members. But in contrast to other members of the loved ones, your dog could cost you when it comes to insuring your property. As with most insurance matters, the greatest guidance is to be sincere with your carrier and informed when it comes to your policy specifics.


Woman and dog image through Shutterstock.