Dog Bite Claims Costs Soar, Account for 1/3 of All Homeowner Liability Claims

Dog bites and other dog-related injuries accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2014, costing in excess of $530 million, according to the Insurance Information Institute (I.I.I.) and State Farm.

An analysis of homeowners insurance data by the I.I.I. found that while the number of dog bite claims nationwide decreased 4.7 percent in 2014, the average cost per claim for the year was up 15 percent. The average cost paid out for dog bite claims nationwide was $32,072 in 2014, compared with $27,862 in 2013.

“The average cost per claim nationally has risen more than 67 percent from 2003 to 2014, due to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which are still on the upswing,” said Loretta Worters, vice president with the I.I.I.

The study noted that California continued to have the largest number of claims in the U.S. at 1,867. Ohio had the second highest number of claims at 1,009. While New York had only the third highest number of claims at 965, it registered the highest average cost per claim in the country: a startling $56,628. The trend in higher costs per claim is attributable not simply to dog bites but also to dogs knocking down children, cyclists, the elderly, etc., all of which can result in fractures and other blunt force trauma injuries that impact the potential severity of the losses.

ESTIMATED NUMBER AND COST OF DOG BITE CLAIMS
(AND OTHER DOG-RELATED INJURIES)
2003-2014

($ millions) Number of

claims Average cost

per claim 2003 $324.2 16,919 $19,162 2004 318.9 15,630 20,406 2005 321.1 14,295 22,464 2006 322.4 14,661 21,987 2007 356.2 14,531 24,511 2008 387.0 15,823 24,461 2009 412.0 16,586 24,840 2010 412.6 15,770 26,166 2011 490.8 16,695 29,396 2012 489.7 16,459 29,752 2013 483.7 17,359 27,862 2014 530.8 16,550 32,072 % change, 2013-2014 9.7% -4.7% 15.1% % change, 2003-2014 63.7% -2.2% 67.4%

ESTIMATED NUMBER AND COST OF DOG BITE CLAIMS
(AND OTHER DOG-RELATED INJURIES)
2014 STATE RESULTS

per claim Value of claims

($ millions) CA 1,867 $33,649 $62.8 OH 1,009 21,983 22.2 NY 910 56,628 51.5 IL 872 34,894 30.4 PA 861 26,211 22.6 MI 693 38,302 26.5 TX 621 16,205 10.1 IN 481 21,287 10.2 GA 388 31,497 12.2 WI 388 26,873 10.4 Top 10 8,090 $32,018 $259.0 Other States 8,460 $32,124 $271.8 U.S. 16,550 $32,072 $530.8

Source: Insurance Information Institute, State Farm.