The landscape of homeowners’ insurance has become increasingly complex, particularly when it comes to liabilities associated with pets. Recent data from the Insurance Information Institute (III) shows a concerning trend: dog bite-related claims have risen by 8.3% from 2022 to 2023. Although the average cost per claim dropped by 9.3%, the total payout for dog-related injuries in 2023 was a staggering $1.11 billion. This surge in claims and costs has led insurers to reevaluate their coverage policies, especially concerning dog breeds.
The Rising Tide of Dog Bite Claims
The III’s analysis reveals that since 2014, the average cost per dog bite claim has escalated by 82.5%. This increase is attributed to higher medical expenses, along with larger settlements, judgments, and jury awards. With such financial implications, insurance companies are looking to manage risk more stringently.
Can Insurers Exclude Dogs Based on Breed?
The question of whether insurers can exclude dogs based on their breed rather than their history of biting behavior is particularly pertinent. Here’s how this plays out in Pennsylvania:
Pennsylvania’s Legal Framework
- Initial Policy Issuance: Currently, insurers in Pennsylvania are not barred by state statute from refusing to issue a new policy based solely on the breed of a dog in the home. This means that if you’re looking to purchase new insurance or switch providers, your dog’s breed could potentially influence the decision.
- Policy Termination: However, once a policy has been active for 60 days or more, Pennsylvania law prohibits insurers from canceling that policy based solely on the breed of the dog. This protection is found in the Unfair Insurance Practices Act (40 P.S. §1117.5(a)(9)).
- Nonrenewal Based on Risk: If your dog exhibits dangerous behavior or has a history of biting, insurers are allowed to consider this in deciding whether to renew your policy. This is because such behavior constitutes a “substantial change or increase in the risk assumed by the company.”
- Statutory Provisions:
- The Dangerous Dog Law (3 P.S. § 459-507-A) explicitly states that no liability policy or surety bond can prohibit coverage for any specific breed of dog.
- The Unfair Insurance Practices Act further safeguards policyholders by limiting the circumstances under which policies can be canceled or nonrenewed.
What Does This Mean for Dog Owners in Pennsylvania?
If you own a dog that might be considered “high-risk” due to breed by some insurance standards, here’s what you should know:
- New Policy Applications: Be prepared for potential scrutiny or denial based on your dog’s breed when applying for new insurance.
- Existing Policies: If you already have an insurance policy, you’re protected from cancellation based solely on your dog’s breed after the policy has been in effect for 60 days.
- Behavior Matters: Keep your dog’s behavior in check. A history of aggression or biting can still impact your insurance status, regardless of breed.
- Consult Your Insurer: If you’re concerned about your coverage, it’s wise to discuss your situation with your insurance provider. They can clarify how your dog might affect your policy, particularly regarding renewals.
Conclusion
While insurers in Pennsylvania can initially decline to offer coverage based on a dog’s breed, once coverage is established, the law provides certain protections against breed-based discrimination in policy cancellation. Understanding these nuances can help dog owners navigate the insurance landscape more effectively, ensuring both you and your furry family members are adequately protected.
For more personalized advice or to discuss your specific insurance needs, contact LW&G Insurance today. We’re here to help you understand how best to protect your home and pets in this ever-evolving insurance environment.
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