The Insurance Information Institute still places dog bites ahead of all other homeowner's insurance claims, besides fire losses. In 2011 the average (yes, average) settlement cost for dog bite claims was over $29,000. Accounting for more than one-third of all homeowner's liability claims, dog bites continue to proliferate.

Owners of 7-pound Yorkies or, even, 70-pound Labradors and Golden Retrievers, who love everybody, may correctly question these statistics. Yet, in many places, including Pennsylvania, the cost of these dog bites is due to lawsuits brought for "pain and suffering." Just one company, State Farm, paid out around $1.3 million in 2011 for 55 dog bite claims in one state alone. In total, State Farm has paid more than $5 million in dog bite claim settlements between 2007 and 2011. The average dog bite claim settlement is also escalating. Adjusted for inflation, the average claim settlement is 22 percent higher than in 2003.

The III cites increased medical costs, larger jury settlements and court judgments as components of the increase in dog bite claims and the size of settlement amounts. Note that there are over 4 million dog bites annually, according to the Center for Disease Control, with only 19 percent (850,000 people) who need any medical attention.

Fortunately, only a small proportion of dog bites result in claims or lawsuits, but some insurance companies have increased premium rates for homeowners with those dogs that have a higher incidence of bites and claims. How do you feel about this treatment of owners of dogs or dog breeds that seem to have a tendency to bite? Should dogs be treated as individuals?

Source: The Advocate, "Dog bites rank high among insurance claims," July 26, 2012