Tag: pet insurance

Pet Insurance: Read The Fine Print

Great Danes might be the best dogs – they’re calm, require relatively little exercise and space, and are super affectionate towards their human family.  Unlike a lot of needier breeds who need constant activity, Danes reputedly just want to chill with you on the sofa.

The problem with Great Danes is they’re prone to significant, protracted health problems that get incredibly expensive – partly due to their large size and partly due to their susceptibility to congenital and hereditary disorders.  Thus, in researching the pros and cons of owning a Dane, I was repeatedly advised “buy pet insurance!”  That got me thinking whether pet insurance is actually a good deal or a scam preying on cost-conscious pet owners.

Apparently pet insurance, whatever its benefits, has caught the ire of Washington State’s Insurance Commissioner for some pretty significant problems.  One company was found to have violated state law more than 600 times.  Among other things, the pet insurer:

  • Illegally failed to give new policyholders copies of their policy contracts;
  • Misrepresented the policy coverage in its marketing and advertising materials;
  • Failed to cancel policies after pets died or the policyholder no longer owned the pet;
  • Sold policies under a fake name, preventing consumers from identifying the company when they had complaints;
  • Misled consumers about under what circumstances the company would refund premiums;
  • Ignored consumer complaints;
  • Sold insurance through unlicensed brokers; and
  • Failed to explain the reasons for refusing to renew coverage.

Pet insurance also tends to come with significant exclusions.  Pre-existing condition exclusions are unsurprising.  But some policies also exclude “wellness” care and expenses “not directly related to veterinary service” – super ambiguous terms with lots of room for fine print and interpretation that could give the company a basis to deny coverage.

Similarly, some insurance excludes hereditary or congenital disorders – a major drawback if your pet is of a breed (like Great Danes) that are notoriously subject to such diseases.

The upshot is to do your diligence and research the company and your coverage carefully before buying pet insurance, and to double check the policy fine print on your existing coverage to be sure you have the coverage you thought you bought.

 

Is My Dog Covered Under My Homeowner’s Policy?

Seattle may be famously dog-friendly, but there is a lot of uncertainty about whether or to what extent dog-related injuries are covered under traditional liability policies.  Homeowner’s coverage typically protects the insured against liability claims arising from injuries to other people for which the insured is legally responsible.  But policyholders are increasingly learning that dog bite injuries are excluded or limited under many homeowner’s insurance policies.

A recent study found dog-bite lawsuits have risen sharply over the last several years.  Dog bites were estimated to cost insurers over $9 million in Washington State in 2017.  These incidents reportedly constitute over a third of all homeowner’s claims.  Most claims involved dogs biting small children or other dogs.  Delivery-persons are also frequently involved in dog-bites – the increase in dog-bite claims over the past years has been linked to the increased prevalence of online shopping.  Many states and municipalities are adding laws making owners liable for injuries caused by their pets.  Legal fees and medical bills in dog-bite cases can be significant.

Dog owners often look to homeowner’s policies for coverage.  Typical homeowner’s policies cover any injuries for which the policyholder could be liable.  This would seem to cover dog bites in principal, but polices often exclude injuries caused by animals entirely or limit the number of claims that can be made related to injuries caused by a single animal. Or, some policies may limit coverage for certain breeds such as pit bulls or rottweilers.  In some instances, umbrella liability policies may cover pets or breeds excluded from homeowner’s coverage, but may have similar restrictions.

The upshot for dogs and their owners is to carefully review the terms of your homeowner’s coverage to confirm you have coverage if your dog injures other people or pets.