From Yahoo Finance · · 1m 20s
Retiree's Dog Bite Exposes Wealth
Retiree's dog bite claim leaves $2 million in assets exposed after homeowners insurance limit.
In brief
Retiree's dog bite claim leaves $2 million in assets exposed after homeowners insurance limit. A 68-year-old retiree with a paid-off home and $2 million in savings faces personal liability when a dog bite claim exceeds standard homeowners insurance limits. Originally reported by Yahoo Finance.
Homeowners Insurance Limit
Standard homeowners liability coverage tops out between $100,000 and $500,000, leaving wealthy retirees personally exposed when judgments exceed that limit.
Dog Bite Claims Cost $1.86 Billion
Dog bite claims hit 28,450 last year and cost insurers $1.86 billion, with serious injuries easily exceeding typical policy limits.
Umbrella Insurance Protects Assets
Umbrella liability insurance extends coverage beyond your homeowners policy limit and is the primary tool for protecting accumulated assets.
Retiree's Situation
A 68-year-old retiree in a quiet suburb has a paid-off house and roughly $2 million in brokerage and retirement accounts.
Dog Bite Incident
The dog bites the neighbor, causing a hand puncture and a trip to urgent care, followed by a law firm letter a month later.
Why This Happens
Personal liability coverage on a homeowners policy typically runs between $100,000 and $500,000, with claims exceeding this limit coming out of the homeowner's pocket.
Consequence for Retiree
The homeowner is exposed for the difference between the claim and the policy limit, risking assets built over decades.
At a glance
A 68-year-old retiree with a paid-off home and $2 million in savings faces personal liability when a dog bite claim exceeds standard homeowners insurance limits.
