Homeowners and renters insurance policies typically offer at least $100,000 in coverage for incidents involving dog bites. This coverage is crucial as it requires the insurance company to compensate for injuries caused by dogs. If you need more coverage, you can get up to $300,000 for a relatively low additional cost, which is recommended if you have a medium-sized dog. Also, having a $300,000 coverage is necessary if you want to buy a personal excess or umbrella insurance policy, which can provide up to $1 million in coverage for only $150 to $300 per year.
It’s essential for dog owners to understand the risks since dogs bite millions of Americans each year, especially children, leading to over $1 billion in losses annually. (See see Dog Bite Statistics). Often, the victims are the dog owner’s relatives or friends, making insurance crucial to protect these close relationships and ensure that compensation does not come out of personal relationships but from insurance.
However, not all homeowners and renters insurance policies cover dog-related injuries. Some exclude injuries caused by specific breeds or all dogs, while others might not offer adequate coverage. For example, some mobile home policies cover dog bite liabilities only up to $25,000. Historically, the minimum coverage has been $100,000, but as mentioned, $300,000 is more suitable for households with medium-sized dogs.
Some insurance companies also refuse to cover homes with certain dog breeds considered high-risk, or they might charge extra for such coverage. Breeds often listed as high-risk include German Shepherds, Akitas, Siberian Huskies, Alaskan Malamutes, Chow Chows, Doberman Pinschers, and American Pit Bull Terriers.
Dog owners should ensure their insurance covers dog bites and does not exclude specific breeds or impose limits that could leave significant out-of-pocket expenses. You can confirm this by reviewing your policy’s “Personal Liability” section and the exclusions it contains. Also, it’s wise to check any recent policy amendments or notifications that might affect coverage.
While your policy might seem to provide coverage with adequate limits, one of those pieces of paper might take it all away! Look for something that refers to “special limits.” It may refer to a special, low limit for harm caused by your dog. Attorney Kenneth M. Phillips had a case where a well-off tenant had a $500,000 limit for personal injuries but wasn’t aware of the $50,000 special limit for injuries inflicted by her dog. She had to pay the victim another $100,000 from her savings.
Beyond standard policies, umbrella liability coverage is highly recommended as it extends from $1 million to $10 million and covers various types of liabilities at a low cost. This type of policy is especially useful for protecting against significant financial losses that could impact a dog owner’s assets.
Additionally, other types of insurance provide protection under specific conditions for both dog owners and victims of dog bites. For example, automobile liability insurance might cover incidents where a dog bites someone inside a car. Landlord insurance can protect landlords from claims arising from a tenant’s dog’s actions, although it does not cover the tenants themselves. Businesses can benefit from commercial liability policies that address dog bites occurring on their premises, and workers’ compensation might cover incidents where an employee is bitten by a dog while working. There are also specialized dog liability insurance policies available, specifically designed to cover damages or injuries caused by dogs. (See Where To Get Dog Owner Liability Insurance).