Research compiled by the Insurance Information Institute (I.I.I.) suggests that man's best friend may not be so friendly after all, at least to insurers' wallets.
Dog bite-related claims comprise one-third of all homeowners' insurance liability claims, the organization reports. In 2007 alone, insurers shelled out $356 million for liability claims involving dog bites. This figure represented a 10.5 percent increase from the previous year. The average cost of a dog bite claim, the I.I.I. believes, is $24,511. While the cost of these claims has increased by almost 28 percent since 2003, Loretta Worters, I.I.I vice president, points out that the number of claims has remained relatively stable at close to 14,500.
“Even though the number of dog bite claims has remained about the same in the last three years, the average cost per claim continues to rise because of increased medical costs as well as the size of settlements, judgments, and jury awards, which have risen well above inflation in recent years,” Worters said.
The Centers for Disease Control (CDC) reports that more than 4.7 million people are bitten by canines annually, resulting in an estimated 800,000 injuries requiring medical attention. With more than 50 percent of bites occurring on the dog owner's property, the issue is a major source of concern for insurers, the CDC said.
There are instances in which the dog owners are liable for any injuries their pets cause. For example, the owner could be held accountable if he was aware that the dog had a propensity to cause an injury; if a state statute makes the owner liable, whether the owner knew the dog had a tendency to cause that kind of injury; or if the injury was caused by negligence on the part of the owner. In most states, however, dog owners are not liable to trespassers who suffer injuries.
“Although some people purchase dogs for the purpose of guarding their homes, deadbolt locks and home security systems are proven burglary deterrents that will often earn homeowners a discount on their insurance premiums,” Worters concluded.
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