Home Insurance Articles
Pets And Home Insurance: What You Need To Know
2010-01-03
Many people view pets to be part of the family. They provide a source of companionship and entertainment for most pet owners. But, there are times when your furry little buddy acts less than noble - they dig up your neighbor's prize rose garden or chew on the mailman. The good news is that most likely the damage done was covered by your home insurance policy in its liability coverage. That is, if your home insurance policy covers pets.
When it comes to owning a pet and acquiring home insurance, the two, on occasion, don't mix - especially if you have what is considered a "high risk" dog. Like car insurance, when it comes to insuring someone with a dog, many home insurance companies weigh in a number of factors about the dog before agreeing to supply coverage. These factors generally revolve around the breed of the dog, including the breed's reputation, frequency of biting incidents for the breed and other statistics determined by the Centers for Disease Control. The Insurance Information Institute reported that about 15 percent of liability claims in 2005 paid under home insurance policies were attributed to claims resulting from dog bites. Based on statistics, that amounts to approximately $317.2 million paid for dog bites alone. So, it's really no wonder this plays some role in a home insurer's to insure certain people. Dogs that regularly show up on the "bad dog" list include Alaskan malamutes, Doberman pinschers, pit bulls, rottweilers, chow chows, German shepherds, Siberian huskies and wolf hybrids. However, many states are working on passing legislation that will bar home insurance companies from using this "breed discrimination." The American Kennel Club actually believes that dogs save insurance companies money by acting as an alarm system and preventing burglaries from taking place.
Dogs aren't the only type of pet that can affect the amount you pay for your homeowner's insurance coverage. You might also want to think twice before getting an exotic pet, like a snake or a tiger. Homeowner's insurance companies tend to view these sorts of animals at just as high a risk and will likely charge you a high rate or refuse to insure you at all.
Regardless of the breed of dog you have, it's best to reveal to your insurance agency any and all pets that you plan to have under your roof. This applies whether you are just getting a new pet and merely have to update your policy, or you are investing in a new home insurance plan.
And, don't fail to do report your pet just because you're afraid of a rate hike. Owning a pet comes with certain responsibilities, and obtaining adequate home owner's insurance is one of those.