Vicious Dogs Taking Bite Out of Homeowners Profits.

With insurers paying out $250 million annually in claims for dog bites in the liability portion of homeowners policies, many are dropping customers and refusing those who own aggressive dog breeds, such as pit bulls, chows, Doberman pinschers, boxers, German shepherds, Great Danes, Rottweilers and Siberian huskies, according to the Insurance Information Institute.

"Those breeds come up most often in claims," said Loretta Worters, a spokeswoman for the institute. "Most companies insure homeowners who have dogs, unless there's been an incident where the dog has been aggressive and there's been a large claim," Worters said.

In that instance, an insurer probably would suggest that the owner give the dog away. "If they don't, [the homeowner] may face a higher premium or the nonrenewal of their homeowners insurance policy," Worters said. "Or, the insurance company may simply exclude the dog from the policy."

In all lines of insurance, companies paid out about $1 billion last year is claims related to dog bites, the institute estimated. According to the Centers for Disease Control and Prevention, about 800,000 people were treated for bites in 1994, compared with about 580,000 in 1988.

Richard Berstein, vice president and general counsel of MetLife Auto & Home, based in Warwick, R.I., said dog bites are a "real concern" because of the severity of the injury and because more than half the victims are children. "We've instituted a very responsible policy, and we've identified certain breeds of dogs," Berstein said. "We tell our agents that if a homeowner has one of these dogs, they are not to bind the policy. We need to first review it from an underwriting standpoint. We are trying to match risk to rate."

The breeds that MetLife has identified as a high risk include American Staffordshire Terrier, chow chow, German shepherd, Doberman pinscher, Malamute, husky, pit bull, Rottweiler, dingo and "any other dog that has a previous bite history," Berstein said.

He said the company makes exceptions in certain situations. For example, if a German shepherd is used in the household as a guide dog, it would be covered. "Or, if they [the homeowner] have a letter from a veterinarian confirming that the dog is safe and not a threat," that would be an exception as well, Berstein said.

Kitty Miller, a spokeswoman for Farmers Insurance Group, Los Angeles, said Farmers doesn't have breed restrictions. "However, we recognize that with any breed, an individual dog may be aggressive, and we have always reserved the right to refuse coverage to any dog we question. If a dog has a previous history of aggression or bites, we will likely not cover them. And after a customer has turned in a dog bite claim, we'll review their file and make a decision about continuing their coverage."

Deb Klouser, a spokeswoman for Allstate Insurance, said the only breed the company doesn't cover is the pit bull. In all other cases, the company reviews a dog's bite history. "If there was an incident of a bite, it may affect the coverage or the premium," she said. For breeds that tend to have a higher bite incidence, she said the company may send an agent out to determine the level of a dog's aggression. "But that doesn't happen every day," she said.

Klouser said there are carriers that offer specialized policies for these situations, and "we do try to direct people to them."