Complete Guide to Insurance for New Dog Owners | Fox Business

2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business

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Complete Guide to Insurance for New Dog FOLLOW FOX BUSINESS Owners Get Our Free Newsletter Enter Email Address Sign Up By Karen Aho / Published November 22, 2013 / Insurance.com Like 266k Follow @foxbusiness

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Print If you can't live without your dog, it's time to consider whether you can't live without extra insurance, too. The same goes for other Email pets, although it's dogs that comprise the focus of home and auto People plus packages equals Share policies. the future of delivery? Share 115 We know it's tempting to dismiss the subject of insurance. My dog Tweet 21 isn't going to hurt anyone, we think. I'm not going to have an 90% of Americans Share 7 stressed over accident with pets in the car. I'll pay with credit in the unlikely event money? of a veterinary emergency.

MORE FROM INSURANCE.COM All understandable if not wishful thinking. Until something happens. MORE FROM FOX BUSINESS Spouses and friends are the most annoying drivers When Sharing Taxes Might Not be In New York state, a mail carrier sued the owner of a golden Will insurance pay for DIY a Good Idea dent repair? retriever that ran from the yard to greet her. The mail carrier, Feds add teeth to mental apparently stricken with fear, took off in flight and injured herself health insurance law trying to jump through a car window. Ultimately, the carrier lost that Expedia to Acquire RELATED STORIES suit, a judge citing the dog's lack of aggression, but not before Orbitz in $1.6 Billion Deal http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 1/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business Tips for Picking the Right costing the dog's owner the stress and cost of a trial. Life Insurance Plan

Do You Need Gap Insurance for Your New In another case, in California, an owner was held responsible after Car? its dog wandered into the street, causing a pickup truck to crash. Wildest Pet Insurance Claims: Dog vs. Onion Two men were thrown from the back end and suffered serious, How Love Can Rings, Cat in Wash Cycle permanent injuries. A judge ordered the dog owner's homeowner's Teach us to Lead How to Hide Medical Treatment from Your insurance to pay $2.6 million in damages. Health Plan

Companies Get Creative "A good proposition to keep in mind is that owners certainly could with Benefits to Lure Top Talent be found financially and legally liable for whatever kind of damage Will You Marry ... My Debt? 12 ways your driving their dog causes. You don't know, but there's always that record can screw up your life possibility," says lawyer Mary Randolph, author of "Every Dog's Legal Guide."

FROM OUR SPONSORS The best course is prevention, Randolph says: "Don't worry so Metromile to offer much about the outcome of a lawsuit; just try to avoid the problem permile insurance in the first place." option to Uber driver partners Engadget But there's no eliminating risk. A pet will sneak out. A frightened

animal will bite. Even a cat in a car carrier can distract a driver. Recommended by Dogs are hurt in cars and flee accident scenes. And, although we MILITARY PERSONAL FINANCE More › don't like to think about it, our pets get sick and injured. For all these events, we as owners are responsible.

Even as the economic downturn slowed the growth of pet health insurance plans, the industry still maintained a 7 to 10% annual How to Use the Web to Improve growth, according to the North American Pet Health Insurance Your Monthly Budget Association. Such a clip well outpaces other types of insurance. Sorting Through the Auto, Life, Health Insurance Maze Insurers are folding pet coverage into auto policies. Meanwhile, When You Can't Sell Your Home homeowner's insurance companies are writing policies to try and reduce petrelated costs.

It can be baffling for the consumer. But here's a primer on the big Investing › three categories of insurance that pertain to pets home, auto, pet to get you started, whether you've just adopted a new kitten or are padding the pillows for an old dog.

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"If you own a dog, you must read the personal liability section and Find Personalized Rates Enter Zip Code Search you must look at the exclusions; those are two different sections," says Kenneth M. Phillips, a California lawyer who specializes in Sponsored Searches dogbite cases. "It is becoming more and more of an occurrence for insurance companies to exclude coverage for injuries caused by an 1. 10 Best Mutual Funds

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Insurance companies are trying to cut their losses. In the last decade, dogbite claims have accounted for more than a third of all homeowner's insurance liability losses, totaling $489 million in this country in 2012, according to the Insurance Information Institute. The average claim paid out was $29,750.

Without insurance, owners are on the hook. The days when most judges gave owners a pass for a firsttime offense are fading fast, says Randolph.

In about half of the states, owners are expected to presume a dog might cause harm, even without any prior indications. Owners can even be sued if a person is injured as a result of being frightened by a dog, as with the mail carrier.

"The trend is definitely to make owners responsible for their dogs," Randolph says. "Even if your state's law hasn't changed, you may be found liable where in the past you might not have."

Homeowner insurance limits pertaining to pets

Homeowner insurance policies typically provide between $100,000 and $300,000 in liability coverage on a standard policy. But, again, don't assume those apply to the pet read carefully for any mention of limits.

Phillips had a client who'd been bitten by a friend's dog. "No problem," the dog's owner had said. "I have $300,000 in liability coverage." But the owner's insurer pointed her to a little clause she'd overlooked: when it came to incidents involving the dog, coverage was only for $50,000.

http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 3/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business The medical and other bills exceeded that amount, as can often be the case. Damages can include legal costs, emotional and physical pain, and loss of future wages and enjoyment.

"We had to go after the woman individually to pay," Phillips says. "She was shocked. She hired a lawyer, said, 'I bought a $300,000 policy.' The lawyer said, 'Sorry, you should have read it.'"

Some companies won't exclude breeds outright, or are prohibited by state law from doing so. But they may require the owner to submit behavioral evaluations, and will likely cancel coverage following an incident.

"You're always going to need to check with your carrier," says Paul Vames, a lawyer in Hillsboro, Ore. "Certain breeds require a viciousbreed rider, or endorsement. . . . You need to let the insurance company know you have that kind of breed."

Do you need an umbrella insurance policy?

Also known as a personal excess liability policy, an umbrella policy can extend coverage to other areas, such as libel or rental units, and, more importantly here, raise the total dollar amount for all coverage.

Phillips recommends that anyone with a dog, particularly a medium or large dog or a highrisk breed, buy an umbrella policy.

"It's going to cost you under $100 and it's going to get you $1 million coverage," he says. "And the person who gets hurt by your dog is going to be your niece, or your friend's son, or your neighbor."

Auto insurance for the dog?

You know your auto insurance will provide some medical benefits for your injuries and those of your passengers. But what about your pet?

The answer is a bit complicated. In the insurance world, pets are generally treated as property. As such, if the other driver is at fault, his liability would cover your loss. That would include what you paid to treat your pet.

If you are at fault, however, your collision coverage kicks in, if you have it. And collision doesn't cover the property in your car. You're on the hook for any vet bills.

http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 4/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business In response to this gap, some auto insurance companies have begun offering drivers separate petinjury insurance, so if you are interested in getting such coverage, be sure to ask about it when you compare auto insurance companies .

Progressive kicked off the trend in 2007, and its coverage is automatically included in collision, paying up to $1,000 for a pet injured due to an accident, fire or theft. Others are doing the same, including Erie and AutoOwners.

"Pets are part of your family," Progressive states, "they're your passengers, too. So shouldn't they be covered by your auto insurance policy? We think so."

Several other companies offer what Arbella Mutual Insurance calls a "pet lover's endorsement," which for $20 a year buys you $500 in coverage. The Chubb Group offers $2,000 worth of petinjury coverage. Always check the fine print to make sure your particular pet is covered, particularly if it's an exotic animal.

Of course, the question remains as to whether $500, or even $2,000, will be enough. As anyone with pets knows, vet bills can easily run higher. Which leads to the question that may most haunt new pet owners: is pet health insurance worth the cost?

Veterinary insurance: don't expect an immediate return

Only 1 percent of pets in the United States are covered by pet insurance, according to the North American Pet Health Insurance Association. Of the pets covered, 85% are dogs.

In Germany, Scandinavia and the UK, where pet insurance began a century ago, a quarter to three quarters of pets are covered.

In addition to the fact that pet insurance is relatively new in this country VPI was the first to open its doors here, in 1982 some of the difference in adoption rates may be due to Americans' perception of the role of insurance.

Those in the industry say clients and the media often ask whether pet insurance guarantees an immediate return on investment. They then do the math on an annual basis. By this calculation, the answer is typically "no."

Pet insurance generally costs between $300 and $500 per year, depending on the company and the benefit plan. As with people's health insurance, plans offer varying deductibles and copays, as well as treatment maximums and annual limits.

http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 5/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business Consumer Reports, which conducted a review of many top plans in 2011, concluded that unless there's a major event, pet insurance isn't worth the investment.

But such reasoning misses the mark, say experts, particularly if you are of moderate means and would prefer not to let finances determine your pet's fate. If you're not wealthy, it can be difficult to save $6,000 for emergency intestinal surgery, $10,000 for cancer treatment, $1,000 for a broken leg, or even $500 for feline diabetic testing and treatment.

"In an ideal world, we wouldn't need pet insurance because we'd put money aside every month," says Kristen Lynch, executive director of the North American Pet Health Insurance Association. "But we don't live in an ideal world."

"The whole point of insurance is to pool your capital so when you're not claiming it, other people can," she says. Meanwhile, you have bought peace of mind, knowing the money's there when you need it.

"In an emergency situation, having insurance can take away the sting of an unexpected cost concerning a pet's health," says Dr. Steven Rowell, director of the emergency hospital at Tufts University Cummings School of Veterinary Medicine.

The problem is that pet plans vary tremendously. Even if a family member recommends a plan he or she likes, research several plans yourself on a site like PetInsuranceReview.com. Key points to keep in mind:

Some pet insurers, such as VPI (Veterinary Pet Insurance), either set their own costs for particular treatment or limit annual payouts for procedures, regardless of what your vet recommends or charges. Carefully check those limits against potential costs. Most plans pay a set percentage instead say 80% of the actual vet bill and impose an annual maximum for all treatment combined. This model is gaining in popularity. Some plans exclude the most common or treatable conditions. Frances Wilkerson, a veterinarian who outlined her research at petinsuranceuniversity.com, recommends that owners only buy plans that cover cancer, chronic disease, hereditary and congenital disease, and conditions common to your breed. Consider carefully whether to spend the extra money on preventative treatment, included in socalled wellness plans. You'll spend a bit more and get a bit more back, but it's often a wash in exchange for the pleasure of doing paperwork. "It's essentially sending money back and forth," says Michael Hemstreet, founder of PetInsuranceReview.com. http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 6/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business Most importantly, understand that pet insurance never yes, never covers preexisting conditions. You must buy the insurance before the problem develops. As Hemstreet points out, pet insurers make slim profit margins and only after several years in business. Companies couldn't afford to be in business if customers only signed up when they needed payments. That's not how any type of insurance works.

Hemstreet receives emails every week asking whether there's any company that pays for a newly diagnosed condition. "They wait too long," he says. "Then they're upset." He explains that you can't add the applicable car insurance after a tree falls on your car, or flood insurance after a flood. Not for payment on that event anyway.

"Then they all get insurance for their next dog," he says. "That's why it's growing. You don't know how expensive vet bills are until something happens."

Dog is my copilot: How to safely transport your pup in your car

If you let your dog ride loose in the car, you may not want to watch the videos of the crashdog dummies posted by an animal safety group.

The stuffed animals, weighted to approximate real dogs, lurch forward at violent speed, their harness belts tearing apart like paper. The dogs bounce off the front seat and into the back breaking edge of the back seat bench, bodies folded, necks arched, legs flailing. One dog crashes straight through the front seating material into the driver's seat.

The nonprofit organization responsible for the tests, The Center for Pet Safety, wants people to see these videos. Doing so inevitably helps raise awareness of the issue and elicits the right questions.

Why, for example, do nearly all the harnesses or seatbelt attachments break apart at low highway speeds? Why do some products say they're tested, only to fail? How can an owner be expected to safely transport his pet?

More than half of U.S. dog owners (56%) let their dogs ride in the car with them at least once every month, a 2011 survey from AAA and Kurgo, a manufacturer of pet travel devices, found.

Yet only 16% of owners reported using a pet restraint, even though 83% thought an unrestrained dog in a moving vehicle posed a danger.

http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 7/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business A body in motion stays in motion. When the car stops, multiply the speed the pet is still traveling by its weight to approximate the pounds of pressure that pet now can exert on a small area in its path.

An 80pound Labrador hurling forward at 30 mph? That's 2,400 pounds of pressure. A 30pound dog at 50 mph: 1,500 pounds. Both exceed a boxer's punch and can break necks.

"In the event of a crash, your pet becomes a missile in the car," AAA spokeswoman Heather Hunter says.

Safety experts say this fact often comes as a great surprise to pet owners, nearly one in five of whom let small dogs crawl on their laps. Here are some others:

Any size dog can easily be killed by the massive force of an airbag. If a small dog is on someone's lap, that explosive force will not only crush the dog but can severely injure the person behind it. Dogs should ride in the back. After an accident, a loose, frightened dog will run. Stories abound of dogs struck and killed by another car, or causing other cars to swerve and crash. If your dog causes another accident, your homeowner's and auto insurance may try to deny coverage. "Often the two insurance companies end up duking it out in court, each trying to escape an obligation to pay," Randolph writes at Nolo.com. In an accident, where owners and dog alike may be injured, even a friendly dog is likely to bite rescue workers who reach their hands inside. It is not the dog's fault. Its protective instinct simply takes over. Despite the risks, harnesses don't restrain a dog in a stop or crash. When the Center for Pet Safety did its first round of tests, in 2011, it reported a 100% failure rate for pet harnesses.

The problem is that manufacturers aren't required to test pet travel products, nor are their advertising claims regulated by government. A manufacturer may claim its harness has been tested, but no government agency is checking those claims or the testing procedures.

"The word 'safe,' or 'safety,' is so overused in the pet industry," Center for Pet Safety founder Lindsey Wolko says. "It's actually a marketing term. It's not a statement of fact."

But at least one company returned to the drawing board. In the center's tests this year, funded by the automaker Subaru (half of whose customers travel with their dogs), the Sleepypod's Clickit Utility Harness "was the only harness tested to consistently keep a dog from launching off the seat," the study reported. http://www.foxbusiness.com/personal-finance/2013/11/20/complete-guide-to-insurance-for-new-dog-owners/ 8/11 2/12/2015 Complete Guide to Insurance for New Dog Owners | Fox Business Those tests were done at 30 mph with simulated 25, 45 and 75 pound dogs.

Don't forget, too, say highway officials, that pets of all kinds pose a significant distraction. Bicyclists and other drivers have been killed when drivers turned to restrain a puppy. Now police in several states will ticket drivers whose pets aren't restrained. In New Jersey, drivers can be cited under an old animalcruelty law.

Phillips, the California lawyer who specializes in dogbite cases, says even drivers who aren't to blame for an accident risk losing money in a settlement if any evidence of a potential distraction surfaces.

"If you have an unrestrained dog you will be accused of causing that accident," Phillips says. "You're exposing yourself to all kinds of hellfire if something happens."

Other safety tips:

A walking harness clipped to a seat belt may prevent a dog from distracting the driver, but it won't offer protection in a crash. Don't try to rig up your own safety device, and never tether a dog's neck. "There's enough force even in a short stop to break your dog's neck," Wolko says. Heavy chains can also whip loose and cause a severe injury. "We tell people, Imagine using that product on a child."

The original article can be found at Insurance.com: Complete guide to insurance for new dog owners

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