With 34 percent and a steadily increasing percentage of Americans renting their homes, and with over 70 percent of these renters having a pet, questions about what pet liability insurance is has never been more pertinent. In the most general sense, pet liability insurance protects the owner from expenses from damages done to the property of a third party (someone not in your household) or injuries to a third party caused by your animal. If you own a pet, pet liability insurance is an absolute must.
Does my renters insurance cover pets?
Now that we know how important coverage is for renters who are also pet parents, we need to discuss what this coverage looks like and how it works with renters insurance. Every renter should have renters insurance, but if you’re a pet owner as well, take a look at your policy and state laws for specific information on pet liability coverage.
Typically, your renters insurance should have three types of coverage including personal property, liability, and additional living expenses. For pets, the important coverage is liability, meaning that you are protected if your pet injures someone or causes damages to another person’s property. A typical renters insurance policy covers up to $100,000 in liability coverage. This might seem like a lot, but accidents and injuries can add up, so it’s best to be prepared for the worst-case scenario. It may even be worth it to have a plan that covers more, depending on your situation and animal.
What to do if renters insurance doesn't cover pets?
Check your state laws and your liability coverage plan because certain restrictions on animals may apply. Some plans and companies exclude certain dog breeds, exotic pets, have a weight limit for the pets, and/or won’t cover dogs with a history of biting. Some states also have restrictions on pets being covered through renters insurance. Typically, the following breeds, or dogs mixed with the following breeds, are commonly restricted in the United States:
- Any type of pit bull breed
- Great Dane
- Doberman
- Boxer
- Husky
- Akita
- Chow Chow
- Malamutes
- Wolf Hybrids
- German shepherds
- Rottweiler
- Mastiffs
- Saint Bernards
- Perro de Presa Canarios
- Rhodesian ridgebacks
If your renters insurance doesn’t cover your pet or you want more coverage, you may want to consider a personal umbrella policy. A personal umbrella policy can be added to your renters insurance and is a type of liability policy that offers more coverage. This way, if your pet isn’t protected under your rental insurance’s liability policy, or you feel that you need to have more than your liability coverage, a personal umbrella policy might be best for you.
You can also purchase separate pet liability insurance instead. These types of insurances aren’t very common and are best for renters who are unable to add an umbrella policy to their insurance that works with their pet, or for people who own an exotic pet that is excluded from traditional insurance policies.
Do I need pet liability insurance?
If you are the owner of an animal, you need pet liability insurance. It’s necessary because it protects you from expenses you could potentially be accountable for. Even if you have something as harmless as a fish tank, there are still potential liabilities.
Another big reason you might want pet liability coverage would be if you have a dog commonly found on restricted breed lists (see the above list). Pet liability insurance could make finding an apartment easier as it shows you are a responsible pet parent.
What does pet liability cover?
Now that we know all the details behind the certain coverage plans and add-ons, what exactly are you protecting yourself from? Essentially, you’re protecting yourself from having to pay for damages done to others.
If you have a guest over and your cat scratches them, your insurance will cover medical expenses. If your dog gets out and wanders into your neighbor’s house and chews on their sofa, you are still covered under liability. If your fish tank springs a leak and the water seeps through your floor into the unit below and they suffer a damage, your insurance will cover their damages. In these scenarios, the person who was affected would have to file a claim through your insurance company, and in turn, your insurance company will try to reach a settlement. If the affected party finds the settlement to be inadequate, they can file a lawsuit, but the fees will be paid through your liability insurance, which is why having adequate coverage is so important. While your small dog or fish may seem harmless, things happen, and you want to be protected.
What doesn’t pet liability insurance cover?
While pet liability insurance protects you from expenses your pet cost others, it does not cover expenses your pet caused you, their owner. It only covers injuries or property damages done to a third party (someone not in your household).
Let’s go back to the fish example where the tank leaks through the floor into your neighbor’s unit. While any damages they suffered would be covered by your insurance, the water damages your unit suffered would not be covered under pet liability. Because of this, we recommend getting renters insurance so that the damage could be covered under property damage. Certain damages done to your unit by your pet might be deducted from your pet deposit, so don’t fret if something small like a potty-training accident occurs.
If your pet unfortunately gets impounded by law enforcement, you will have to bear the cost as this is also not covered under liability insurance.
What is the difference between pet insurance and pet liability insurance?
You might hear the words pet insurance and pet liability insurance used interchangeably, but they are quite different.
Pet insurance covers your pet’s medical expenses, much like your health insurance covers your medical costs, and can be purchased separately and will have varying levels of coverage and prices. Pet liability insurance covers medical costs caused by your pet to a third party but not any injury or sickness your pet sustains.
How much does pet liability insurance cost?
The cost of pet liability insurance varies based on the type of animal/breed of dog and the pet’s history. Typically, a policy can range from $100 to $1,000 a year. Some policies cost only $10 per month and have coverages ranging from $10,000 to $30,000, but, again, do your research as these numbers will likely need to change based on your pet and their history.
Having the right coverage plan is essential in order to protect you and your pet. While having $30,000 in pet liability insurance may seem excessive, keep in mind that the average cost per dog bite claim in 2018 was $39,000, and that dog bite related liability claims that same year totaled $675 million. In some cases, it’s best to prepare for the worst, so if having that extra coverage gives you peace of mind, it’s worth the money.
