Companies aren’t covering some breeds

There are about 4.7 million dog bites in the United States every year.

Those bites result in about 800,000 injuries that require medical attention with half of those injured younger than 18 years old, the Centers for Disease Control and Prevention reported.

In 2007, dog bites accounted for nearly one-third of all homeowner’s liability claims, totaling $356.2 million in insurance payouts, the Insurance Information Institute reported. The average payment was $24,511.

“We paid out over $50,000 last year because of a pit bull bite,” said Peter Jacobus, an American Family Insurance agent in Fremont.

He said in that case, a repairman came to the home, the dog was not restrained and it attacked the man.

Because of those types of incidents, American Family will not offer homeowners or renters insurance to owners of rottweilers, pit bulls and wolf mixes.

“If they bite, it’s expensive,” Jacobus said. “If they have them, we can’t insure them.”

He said it’s a problem that is causing insurance companies to increase premiums. If a homeowner lies about owning the dog or gets the dog after the policy is issued, he said American Family will honor a bite claim but the homeowner would be dropped or have to get rid of the dog.

Mike Shanahan is an independent insurance agent in Fremont who sells insurance for multiple carriers including Farmer’s Mutual and Iowa Mutual. He said none of the companies he works with allow pit bulls, chows and Doberman pinchers. Some won’t insure a home with a German shepherd.

“Sometimes you can get a specialty insurance that will let you exclude the dog (from coverage),” Shanahan said.

He said people with uninsurable dogs often lie about their ownership, but that can come back to haunt the dog owner.

“The questions (about dog ownership) are part of the application and that’s part of the contract,” Shanahan said, adding that claims for dog bites on such policies are commonly denied. “I’ve been pretty fortunate I haven’t had anybody bitten.”

The insurance companies are looking for ways to keep costs and premiums low, he said.

“The insurance companies try to see what dogs are going to be a problem and it’s a problem you can’t control,” Shanahan said. “It takes a lot of $200 or $300 premiums to pay for a $100,000 claim.”

State Farm Insurance is one company that doesn’t discriminate against dog owners by breed.

“They do ask questions as far as what kind of animal you have and if it’s ever bitten anyone,” said Tim Lambert, a Fremont State Farm agent. “They take it on a case-by-case basis.”

Variables like if the dog is kept in a kennel or fenced yard are taken into consideration, he said. If there is a bite claim, the dog must be gotten rid of.

“Any dog, if it’s bitten anybody, you have to get rid of it,” Lambert said.

Otherwise, the policy will be canceled, he said.