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Your dog's bite could bankrupt you
If your pet attacked someone, you could owe tens of thousands of
dollars -- or more -- and your insurer might not pay up. You could
even land in jail.
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By Liz Pulliam Weston
The Santa Rosa, Calif., case was horrifying: A 90-pound American
bulldog attacked a woman walking her own dog to a school bus stop to
meet her children, biting off her nose.
The bulldog's owner insisted the animal had never bitten anyone or
even behaved aggressively the previous times it had escaped from her
yard. That didn't do much to sway the judge.
The owner was sentenced to four months in jail and 100 hours of
community service.
The victim, who endured several surgeries to rebuild her face, was
later awarded $900,000 in a civil settlement. Her husband and
children were awarded $33,000 each, for a total settlement of $1
million -- the upper limit of the dog owner's insurance policy.
Clearly, this was a severe case, both in the intensity of the attack
and in the consequences for everyone concerned -- including the
bulldog, which was euthanized.
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Understand your risks
But all dog owners need to understand their potential liability
should their animal bite, maul or, heaven forbid, kill someone. A
single bite could cost you tens of thousands of dollars -- a lawsuit
hundreds of thousands -- and your insurance coverage might not apply.
If the attack is especially serious, you could even go to jail.
Consider:
. Dog bites make up one-third of all homeowner insurance
liability claims, according to the Insurance Information Institute,
and cost insurers $356 million in 2007.
. The average cost of a dog-bite claim was $24,511 in 2007, the
institute found. That's 11.5% more than the year before and 28% more
than in 2003.
. More than 4.7 million people are bitten by dogs annually,
according to the national Centers for Disease Control and Prevention.
Nearly a million of them need medical attention. Some die. Last year,
32 people in the U.S. were killed by dogs, according to Los Angeles
attorney Kenneth Phillips, who specializes in dog-bite cases.
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 Insurer drops dog owner
An insurance company cancels a policy after learning that the
homeowner has a bull mastiff.
A few fatal attacks receive national attention, such as the case of a
San Francisco woman killed outside her apartment door in 2001 by her
neighbors' two Presa Canarios. The married attorneys who owned the
dogs were convicted of involuntary manslaughter, and the wife was
additionally convicted of second-degree murder.
"Because of the death of Diane Whipple, there was a raising of
consciousness" about the problem of vicious dogs, Phillips
said. "That case was so notorious. . . . Here are two people (the dog
owners) who supposedly have brains in their heads, and they were so
stupid when it came to those dogs."
Prison sentences aren't the only sign that tolerance for biting dogs
is waning. Some insurers have reacted to the rising cost of dog-bite
claims by refusing to cover certain breeds. The ones most often
blacklisted include:
. Pit bulls.
. Dobermans.
. Rottweilers.
. Akitas.
. Chows.
. Wolf hybrids.
Other insurers provide coverage for all breeds, but most change the
rules once a dog has bitten someone. Then the companies might demand
a higher premium or require the owner to sign a waiver that excludes
the dog from coverage, leaving the owner uncovered in case of a dog-
bite claim or lawsuit.
Legal standards for owner liability also vary. Some states have "one
bite" laws that limit liability for people whose animals bite someone
for the first time. Most hold owners responsible for any damage their
animals do, whether or not there was a history of attacks or
aggression.
And criminal charges, although relatively rare, can be filed if an
attack was particularly severe and the owner is judged to have been
unreasonably careless or negligent.
Continued: When risk factor increases
Your dog's bite could bankrupt you
Continued from page 1
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In any case, your risk factor for lawsuits and criminal charges
increases if your dog has already bitten someone or has a history of
behaving aggressively. Unfortunately, many owners of aggressive dogs
are in denial about the risks their animals pose.
Their dogs may have chased mail carriers, cornered elderly neighbors
and terrified every child on the block, but the owners will insist
their Fidos wouldn't hurt a fly.
"I always see something in the dog's history that was a warning
sign," Phillips said. "Either the dog owner does something that
created the circumstances that led to the attack, or plenty of
evidence of viciousness was presented to the owner and they've chosen
not to see it."
If this describes you, you need to snap out of it. Yes, you love your
dog, but you're failing to understand the danger that aggressive
animals pose to your family, your neighbors and your finances.
Limit your liability
If you are or want to be a dog owner, here's what you can do to limit
your risk:
Research breeds before you buy. Yes, the owners of many breeds
blacklisted by insurers will insist their animals are cream puffs,
but you should understand that some animals pose greater risks than
others. Talk with a trusted vet about which breeds are most
appropriate for your family and lifestyle.
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Be honest with your insurer. Not telling your insurer you own a dog
is a big risk. If the dog hurts someone, you may not be covered,
particularly if your breed is blacklisted by that company. If your
insurer doesn't cover your animal, another might.
Do the right thing. Spaying or neutering does more than ensure that
more unwanted puppies aren't brought into the world. It also
dramatically reduces the chances that a dog will bite.
Invest in some training. A dog needs to understand its role in your
family "pack." All kinds of behavioral problems can result if it
doesn't. Ask your vet for a list of respected trainers or get a
referral to a Certified Applied Animal Behaviorist, who has
specialized training in animal behavior.
Take sensible precautions. No dog, no matter how docile, should be
left alone with an infant or small child. Keep your dog under tight
control when introducing it to new people and new situations. Avoid
playing games, like tug of war, that encourage aggression. Throw a
ball instead or take the dog for a walk on a leash.
Video on MSN Money

 Insurer drops dog owner
An insurance company cancels a policy after learning that the
homeowner has a bull mastiff.
Get real. A dog that repeatedly snaps or lunges at people isn't
being "protective"; it's being aggressive. There may be a medical
cause, or the dog may need training, or both. Don't make excuses.
Make appointments with your vet and a trainer.
Don't forget leashes and fences. Though they are not mitigating
factors in a lawsuit, spending a few dollars on a leash -- or a few
hundred on a good fence -- could help prevent an attack in the first
place.
Get adequate coverage. Most homeowners insurance policies come with
liability coverage that tops out at $300,000. You'll probably want
more. A $1 million "umbrella," or personal liability, policy
typically costs about $300 a year and is a good investment if you're
at greater risk for lawsuits -- which, as a dog owner, you are. If
your net worth is close to or more than a million, opt for even more
coverage. A good rule of thumb is to have liability coverage that's
twice your net worth.
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Liz Pulliam Weston's latest book, "Easy Money: How to Simplify Your
Finances and Get What You Want Out of Life," is now available.
Columns by Weston, the Web's most-read personal-finance writer and
winner of the 2007 Clarion Award for online journalism, appear every
Monday and Thursday, exclusively on MSN Money. She also answers
reader questions on the Your Money message board.
Published Sept. 4, 2008