Homeowners insurance and dog owners

Dog Fancy Magazine

February 2003

Either scenario could cost you your home insurance.

Many insurance companies today are blacklisting certain breeds or limiting owners as to the number of canines they own in order to maintain insurance coverage. With $1 billion spent on dog-bite claims in 1999, some agents say they have every right to be cautious when insuring households with dogs.

However, as agents from State Farm to Allstate were quick to point out, the restrictions may vary by region. Blacklisted breeds include the Pit Bull, Rottweiler, Presa Canario, Doberman Pinscher and Staffordshire Terrier.

When these breed owners lose their insurance, they are forced to lie in order to obtain coverage, said an Orange County, Calif., resident whose home insurance was cancelled after the company discovered she owned a Rottweiler.

Scenes like this happen every day, says a Riverside, Calif., dog owner who wishes to remain anonymous for fear of losing his current policy.

"We got out of a breed because of this," he says, explaining how his 11-year-old Rottweiler was a red flag for Mercury Insurance, as were his other five dogs. Afraid of losing his just-purchased home–and refusing to part with any of his dogs–he spent an anxious month calling every company he could find in the Yellow Pages before obtaining insurance with a small company. "I'm down to the last place that would insure me. This [practice] is going to affect the people who are honest."

While some companies, such as the Automobile Club of Southern California, decline to state if and what breeds they blacklist, Mercury is up front about its strict policies.

"Anyone who called Mercury and had a Pit Bull got turned down," says Michael Lester, a Mercury agent based in Anaheim, Calif. Rottweilers are also on the no-no list. "[We] just can't write it if they have either dog. If you have a Pit or Rott, don't come to Mercury."

Mercury does enable dog owners of other breeds to exclude their dog–and any dog claims–from their policies at a 10-percent reduction in the policy's cost. However, Pit and Rottweilers owners are not eligible.

For most insurance companies, this blanket denial of breeds applies to new policy owners. Current clients won't automatically lose coverage.

"But a [Mercury] client is not going to get renewed after a dog-bite claim," says Lester.

State Farm Insurance agent Angelica Campos in Los Angeles says that while the company does not ask for the dog's breed, it does ask if it has bitten anyone before. Agents conduct a thorough investigation after a dog-bite claim to determine the risk.

"But if they have two or more dog-bite claims, they've got too many claims," says Campos.

She says calling all dogs in a particular breed aggressive is debatable.

Michael Trevino, spokesperson for Allstate Insurance Co., says that while his company has no corporate stance on this matter, regional offices do have their own rules.

"We want to avoid insuring risks where there's a likelihood of [bites] occurring," he says.

Deputy Insurance Commissioner for California Scott Edelen admits that while dog owners find the insurance companies' stance discriminatory, these companies assume high risk by insuring historically aggressive breeds.

"Let's face it, there's a difference between the Taco Bell chihuahua and a 180-pound Malamute," he says. "Some are obviously more high-risk than others."

Although many dog owners are upset by this generalization, there's been no report of consumer-group pressure to get the insurance companies to change their stance.

On the homefront, there are a number of steps owners can take to maintain happy agents and insured houses.

"Keep the dog in an enclosed area, especially if you're having friends over," says Campos.

Other tips include spaying or neutering the dog, attending obedience classes, obtaining the AKC Good Citizen certification, socializing the dog and never leaving it alone with children, who make up the majority of 4.7 million dog-bite incidents each year.

The American Kennel Club advises owners to shop around for a dog-friendly policy, which might be found by contacting the breed's national club.

If all else fails, owners can purchase a separate liability policy insuring the dog.

"Just because it's a certain breed doesn't make it dangerous," he says, recommending owners try working with their insurers first to come to a compromise. "If [it doesn't work], come back to me. But don't back down. Be proactive."

FYI:

Mitchel Kalmanson, of the Lester Kalmanson Agency Inc., can be reached at 407-645-5000.