Homeowner's insurance is going to the dogs Man's best friend may be your homeowner's insurance policy's worst enemy. Insurers are cracking down on dog-loving homeowners. In some cases, owners of certain breeds are excluded from coverage. In others, insurers are asking dog owners to pay more or are canceling policies for people with dogs that have a history of biting. Even the petless may end up paying for someone else's pooch. Dan Church of Bethlehem, Pa., discovered he couldn't qualify for a competitive quote on homeowner's insurance. Not because he owned a dog, but because a Labrador owned by his tenant in an adjacent home had bitten someone during obedience training. "I was told that I was lucky that my current insurance company had not canceled my primary coverage," Church says. Money motivation Although the well-publicized killing of a San Francisco woman by two Presa Canarios brought national attention to the issue, most observers believe that money is at the root of the price hikes and coverage limits. Insurance companies are cracking down as they face rising costs. Story continues below "The cost of dog liability for insurance companies has been rising steadily for 10 years," says Alejandra Soto, spokesperson for the Insurance Information Institute, a trade group based in New York City. "It hasn't risen dramatically, but it is continuing to rise and insurers view it as a problem." The Insurance Information Institute estimates that the industry paid out $310 million in 2001 dog bite liability claims, compared to $250 million in 1996. Combine that rise with the overall increase in costly claims and lawsuits for everything from toxic mold to natural disasters, and insurance companies are looking for ways to cut costs or boost revenue. Blacklisting breeds Insurance carriers see two ways to solve the canine conundrum. The first is to refuse coverage for certain breeds. The Columbus, Ohio-based Nationwide Mutual Insurance Co., for example, has deemed Rottweilers, Dobermans, pit bulls, Presa Canarios, chows and wolf hybrids ineligible for homeowner's coverage. In these cases, the homeowner can get a Nationwide policy, but the insurer (and others with similar guidelines) simply will not pay any claims related to the listed dogs. "Nationwide appreciates that an individual dog may not be representative of an entire breed," says the company's dog breed policy statement. "However, we find it necessary to apply our standards consistently as it is difficult, if not impossible, for us to determine the true disposition of any individual dog." Nationwide bases its breed blacklisting on dog-attack statistics from the Centers for Disease Control and Prevention, as well as independent studies of dogs breeds and research completed for Nationwide. An owner who is confident that his dog isn't dangerous could opt for coverage from a company that blacklists breeds and take his chances that he's right about the pup's temperament. Most insurance agents, however, don't recommend this approach. Case-by-case coverage The second way insurers have found to limit dog-related losses is to individually consider policies. These insurers say they haven't reviewed their dog coverage rules and have no plans to exclude certain breeds. "We haven't done any specific review of our underwriting and we don't discriminate by breed," says Phil Supple, a spokesperson for State Farm Insurance in Bloomington, Ill. "We look at every home that has a dog on a case-by-case basis. If we think the dog is a problem, we'll write an endorsement that excludes the dog from the homeowner's policy." Even this more-lenient approach might not help Dan Church, the poochless homeowner who fell afoul of the rules because of his tenant's badly behaving Lab. Church has been told, "I would need a death certificate from a vet for the dog if I wanted to change insurance companies." Keeping Fido and your coverage The best defense against rising rates or an outright cancellation of your homeowner's policy is to have your dog properly trained, says Kevin Craiglow, a spokesman of the Independent Insurance Agents and Brokers of America, based in Alexandria, Va. Craiglow urges owners to get documentation for their pet's training. In addition to a good-dog diploma, you can take a bite out of your insurance costs by neutering or spaying your pet. This often can minimize behavioral problems. Securing your pet on your premises also reduces problems. If these moves won't budge your insurer, Craiglow suggests you seek an independent insurance agent who represents several companies. He or she may be able to find a more accommodating home insurer. When all else fails, you may be able to get your main home insurance from one company and add dog liability coverage, at additional cost, from a firm that specializes in that type of insurance, Craiglow says. Check with your current agent for recommendations on this last-resort insurance option. "It's very specialized insurance and can be expensive, " says Craiglow. "But it is available."
