Dog bites accounted for more than one-third of all homeowners insurance liability claims paid out in 2009, costing $412 million, according to the Insurance Information Institute. More than 4.7 million people in the United States are bitten by dogs every year according the Centers for Disease Control and Prevention.

Dog Owner Liability

There are three kinds of law that impose liability on owners:

1. Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
2. "One-bite" rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury.
3. Negligence laws: The dog owner is liable if the injury occurred because he or she was unreasonably careless in controlling the dog.

In most states, dog owners are not liable for losses incurred by trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.

How to Protect Yourself - And Your Assets

Homeowners and renters insurance policies typically cover dog bite liability. Most standard homeowners policies provide policyholders with anywhere from $100,000 to $300,000 in liability coverage. If the claim exceeds those limits, the dog owner is personally responsible for all damages above that amount, including legal expenses.

The personal liability coverage available through a standard homeowners or auto policy simply may not be enough. Therefore, we advise homeowners to consider purchasing an umbrella liability policy.

The best way to protect yourself is to prevent your dog from biting anyone in the first place. To reduce the chances of a dog biting someone, the following steps are recommended:

• Consult with a professional (e.g., veterinarian, animal behaviorist, or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood.
• Spend time with a dog before buying or adopting it.
• Be sensitive to cues that a child is fearful of a dog.  Never leave infants or young children alone with any dog.
• Have your dog spayed or neutered.  Studies show dogs are three times more like to bite if they are NOT neutered.
• Socialize your dog so it knows how to act with other people and animals.
• Discourage children from disturbing a dog that is eating or sleeping.
• Play non-agressive games, such as "go fetch." Playing aggressive games like "tug-of war" can encourage inappropriate behavior.
• Avoid exposing your dog to new situations in which you are unsure of its response.
• Never approach a strange dog and always avoid eye contact with a dog that appears threatening.

Information from the Insurance Information Institute (I.I.I.).