When thinking about how much it costs to have a dog, most of us don't even consider the "bite" it may take out of our insurance dollar. But, even more importantly, homeowners need to be aware of the risk their family pet may pose to the safety of others and their personal assets. The National Center for Injury Prevention and Control reports that 337,526 people in the U.S. were injured by dog bites in 2009, up slightly from 333,235 the previous year.

According to the Insurance Information Institute, dog bites account for more than one-third of all homeowners insurance liability claims, costing $413 million in 2010, virtually unchanged from 2009. An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims was $26,166 in 2010, up from $24,840 in 2009. Since 2003 the cost of these claims has risen nearly 37 percent. The number of claims declined to 15,770 in 2010 from 16,586 in 2009.

Does my insurance cover dog bites?

A dog owner's liability if their pet injures a person may vary according to state law. Some dog-bite laws make the owner liable for any injury a dog causes without provocation. Others make the owner liable if the dog has previously caused injury, implying that the pet is potentially dangerous (often called a "one-bite" rule). Negligence laws come into play if the owner does not exercise reasonable care in controlling his or her dog. In most states, dog owners are not liable if the injured person is trespassing on the owner's property. Homeowners and renters insurance policies typically cover dog bite liability, provided the dog owner informs the insurance company of a pet when buying a policy. Many policies provide up to $100,000-$300,000 in liability. Check with your agent or company to make sure your policy covers dog bites.

Does the kind of dog I have affect my insurance?

Some companies consider the history of the dog, i.e. whether this particular dog ever bitten before. Even in the first incident however, the insurance company will look at what responsibility the dog owner had in the accident. For example, insurance companies expect dog owners to be in compliance with all local ordinances. This means meeting local regulations such as leash laws and fencing height requirements. Some municipalities have even outlawed certain breeds of dogs.

Some insurance companies will not sell you a homeowners policy if you own a breed of dog on their exclusionary list, which is based on historical behaviors of certain breeds. The list of dogs vary by company, so it's good to have that information from your agent or company representative before making a final decision on the type of dog you want. Even if your insurance coverage isn't dropped, premiums could go up if the dog is considered to be at high risk for aggressive behavior by the insurance company. In some cases, an insurer may require you to sign a liability waiver for dog bites.

Colorado's Dog Bite Law

Colorado passed a law in April 2004 (HB04-1279) making dog owners liable for any serious bodily injury their dogs cause another person, regardless of the dog's history and likelihood of being vicious.

Dog Bite Prevention Tips

The Rocky Mountain Insurance Information Association recommends the following steps to help prevent your dog from biting:

• Have your dog spayed or neutered. Studies show that dogs that aren't sterilized are three times more likely to bite than sterilized dogs.

• Socialize your dog so that it knows how to act with other people and animals.

• Play non-aggressive games with your dog such as "go fetch." Playing aggressive games like "tug of war" can encourage inappropriate behavior.

• Avoid exposing your dog to situations in which you are unsure what the dog's response will be.

• Many homeowners are installing invisible fences. These may keep the dogs in, but they don't keep children out. Young children walking by may be attracted. Consideration should be given to this when deciding the type and height of the fence around your yard.

• Dogs and their owners should get training by a professional dog trainer so that the owner can optimize control of the dog if a difficult situation should arise.

• In choosing your dog, measure its personality against the family's personality with whom it will be living. For example, a family with young children should look for a dog that can tolerate lots of noise and commotion.

• Never leave your dog unattended in an open yard or public area.  A child may be approaching a dog with the intention of hugging it, but if the dog perceives a threat it will bite.

• Introduce your dog slowly to new situations and people.

• Know your dog. Don't put it in situations that make it feel overexcited or on guard.

• Make sure your dog is up-to-date on all shots.

• If your dog bites or snaps at anyone, call your veterinarian immediately.

• Be particularly watchful in close situations such as in a car. Keep the dog away from people strange to the dog. Make sure there is someone who can control the dog other than the driver. There are devices that will make traveling with your dog safer for both of you; check in local pet stores.