U.S. insurers’ costs tied to dog bites surged last year to a record as the price of the average claim jumped 12 percent on higher medical fees, legal settlements and jury awards.
Bites cost the industry $478.9million last year, compared with $412.6million in 2010, according to the Insurance Information Institute. An analysis of homeowners insurance data found that the average claim increased to $29,396, up 12.3 percent from $26,166 in 2010, the institute said.
Attacks account for more than one-third of all liability payouts from home insurers, an industry led by policyholder-owned State Farm Mutual Automobile Insurance and Allstate.
A lawsuit can cost more than $100,000 in legal fees and lost wages, even if the homeowner wins, according to the institute, which says dog owners can limit confrontations by spaying or neutering the animals and keeping them from infants.
New State Farm videos seek to take a bite out of aggressive canine behavior after the company paid more than $109million in claims from attacks last year.
The two new videos, launched on State Farm’s YouTube channel, offer tips people can use to avoid attacks.
State Farm does not decline homeowners insurance applications based on the breed of dogs in the household, spokeswoman Holly Anderson said.
But the company does require policyholders to answer questions regarding history of animals. The liability coverage of a homeowner’s policy would cover costs arising from a bite as long as the animal has not been excluded from coverage, Anderson said.
Nationwide, there were 16,292 claims last year, up from 15,770 in 2010.
