NU Online News Service, May 10, 2:56 p.m. EDT

State Farm calls dog bites a “serious public health problem” and says it paid $90 million on about 3,500 dog-bite claims last year.

The Insurance Information Institute (I.I.I.) says insurers paid out $412 million for dog-bite claims in 2010, and the average cost per claim has steadily increased.

A dog-bite claim costs $26,166 on average in 2010, up from $24,840 in 2009. Insurers received 15,770 dog-bite claims in 2010, down from 16,586 in 2009.

State Farm spokeswoman Heather Paul says rising defense and healthcare costs have driven the 5.3 percent increase in average cost per claim.

She adds that the insurer does not refuse homeowners insurance based on ownership of any breed of dog—except in Ohio, where state law has determined that a pit bull meets the definition of a “vicious dog.”

“The only reason State Farm has done this since 2007 is because of the state law,” she says. Ohio is the only state to put such a definition on this breed, though local laws may place restrictions on ownership of certain breeds, Paul adds.

Interestingly, though pit bulls are not covered by State Farm in Ohio, the state still ranks third in dog-bite claims to the insurer.

Ohio accounted for 215 claims and $5.7 million paid in 2010. Illinois came in second with 317 claims and $9.7 million. California topped the list at 369 claims and $11.3 million paid out.

“It points to the fact that people need to be aware of this no matter what breed they own,” Paul says. The statistics also reveal claims numbers do not correlate with a state's population, she adds.

Michigan and Pennsylvania have laws forbidding insurers from canceling or denying coverage to owners of particular breeds. These states ranked fifth and sixth in dog-bite claims in 2010 for State Farm.

State Farm, the largest U.S. personal-lines writer, says it asks homeowners to answer some questions about the breed of dog and its history when a policy is purchased or renewed.

State Farm released its claims numbers to recognize Dog Bite Prevention Week starting May 15.

Sixty percent of dog-bite victims are children under 12 years old. Dog bites led to 33 deaths in 2010, and 20 of those were young children, State Farm says.

I.I.I. says costs related to dog bites are serious enough for many insurers to consider limiting the exposure. After a bite, an insurer may charge a higher premium, not renew the policy, exclude the dog from coverage, or ask the homeowner to give the dog away. Some companies require homeowners to sign a liability waiver for dog bites, while others charge more for certain breeds. Other insurers won't offer coverage to dog owners, according to I.I.I.

Paul says a State Farm policy does have a cap on defense costs related to dog bites, but more coverage can be purchased.

Special Reports /

Dogs Take A $90M Bite Out Of State Farm In 2010

Related Stories

Recommended For You