Nearly 42.6% of U.S. households have a dog and around 32.6% have a cat, according to the American Veterinary Medical Association. For renters who share their homes with animals, a common question is where insurance fits in. In most cases, renters insurance will not pay for a shredded sofa or for a dog's veterinary bills after it swallows a sock. Where the policy can help is when a pet creates a liability problem — a dog bite, an injury to a visitor, or damage to a neighbor's property. Many renters already carry this coverage because landlords commonly require renters insurance as a condition of the lease, though how it applies to pets is not always obvious.

Here is a breakdown of what renters insurance covers for pets, what it does not, and where coverage gaps can appear.

What renters insurance covers when you have a pet

The portion of a renters policy most likely to apply to pet-related incidents is liability coverage. It can come into play if a pet injures someone or damages their property, whether the incident happens at home or in public.

Renters insurance may help, for example, if:

• Your dog bites a neighbor, delivery worker, or visitor in your apartment.
• Your high-energy dog knocks over a delivery person, causing an injury.
• Your dog bites another dog at the park.
• Your outdoor cat damages a neighbor's patio furniture.
• Your cat scratches a child who is visiting your home.

In these situations, the policy may help pay for:

• Medical bills
• Property repairs or replacement
• Legal expenses if you are sued
• Settlements or judgments, up to your policy limits

A single dog-bite claim can easily cost $65,450, according to estimates from the Insurance Information Institute. For renters with pets, this liability protection can be one of the most valuable parts of the policy.

What renters insurance doesn't cover for pets

The easiest way to think about renters insurance is that it protects you from liability, not the day-to-day costs of owning a pet. Policies generally will not cover:

• Vet bills if your pet gets sick or injured
• Routine veterinary care
• Damage your pet causes to your own belongings
• Damage your pet causes to your rental unit
• Injuries to you or other members of your household

Does renters insurance cover pet damage to rental property?

Damage to your own rental unit is generally not covered, but damage to someone else's unit could be handled through the liability portion of the policy.

For example, if a puppy with separation anxiety spends months scratching at the front door whenever you leave for work, that damage is your responsibility. In practice, damage to the unit itself is typically settled through your security deposit or a pet deposit if your lease includes one. Pet deposits, one-time pet fees, and monthly pet rent are lease terms set by the landlord — they are separate from insurance and do not replace liability coverage. If that same puppy chews up a neighbor's fence while outside, however, the cost could be covered through renters insurance.

The key distinction is whose property the pet has damaged. If it is yours, it is generally not covered by renters insurance. If it belongs to someone else, it could be covered up to your policy limits.

Does renters insurance cover dog bites?

Roughly 4.5 million people are bitten by dogs each year in the U.S., according to the Insurance Information Institute, making dog bites one of the most common reasons pet owners end up using the liability portion of a renters policy.

Many renters insurance policies come with $100,000 to $300,000 in liability coverage, with the potential option to add more if needed. For a larger cushion against a serious claim, some renters add an umbrella policy, which sits on top of the underlying renters policy and extends liability protection beyond those limits. Insurers may still apply restrictions involving:

• Certain dog breeds
• Dogs with a history of aggression
• Dogs with prior bite incidents
• Dogs that were not disclosed when the policy was purchased

Breed restrictions for renters insurance

Some insurance companies use breed restrictions when deciding whether to provide pet liability coverage, while others evaluate dogs individually based on factors such as training, behavior history, and previous claims. There is no universal list, but breeds that commonly face restrictions include:

• Pit bulls
• Mastiffs
• German shepherds
• Akitas
• Staffordshire bull terriers
• Chow chows
• Alaskan malamutes
• Doberman pinschers
• Great Danes
• Siberian huskies
• Rottweilers
• Presa Canarios
• Wolf hybrids

Renters insurance vs. pet insurance: Here's the difference

The two products address entirely different risks, and pet owners could benefit from carrying both. If a dog develops severe skin allergies, sprains a leg while out for a run, or ingests something inappropriate, pet insurance could help cover those claims. Pet insurance generally works on a reimbursement basis — you pay the vet bill up front and submit the claim, with payouts subject to deductibles, reimbursement percentages, and annual or per-incident limits. If the same dog injures a delivery driver and the owner is held responsible for that person's medical bills and pain and suffering, that is when renters insurance comes in.

The table below highlights the differences:

Add-ons for when standard coverage isn't enough

If an insurance company excludes a dog's breed or will not cover the pet, separate pet liability insurance — also known as animal liability insurance — is an option. This is a third-party policy taken out in addition to renters insurance. Some insurers will cover any dog breed, though, as with renters insurance, coverage likely will not include damage to your own property or injuries to members of your household.

How to file a renters insurance claim for a pet incident

Filing a claim for pet damage or a pet-related injury usually follows these steps:

1. Make sure everyone is safe

If someone is injured, help them get medical attention immediately. If the pet is still agitated, remove it from the situation to prevent additional injuries.

2. Take note of what happened

Write down exactly what occurred while it is still fresh in your memory. Take photos of any injuries (if appropriate), property damage, and the location where the incident happened. If there were witnesses, gather their contact information as well.

3. Notify your renters insurance company

With most insurers, claims can be filed online, through a mobile app, or over the phone. Be prepared to provide the date and time of the incident, a description of what happened, photos or supporting documentation, and information about any injured parties.

4. Cooperate with the investigation

The insurance provider may ask follow-up questions or request additional documents to verify the account. Respond as soon as possible to keep the claim moving along.

5. Avoid admitting fault

It is fine to express concern and help someone get medical care, but avoid statements such as “this is definitely my fault” or agreeing to pay expenses out of pocket before speaking with the insurance company. The insurer will determine how coverage applies and whether liability exists.

Does renters insurance cover pets? FAQs

Does renters insurance cover my pet's vet bills?

No. Renters insurance will not cover veterinary bills; that is what pet insurance is for. Renters insurance is designed to protect you financially from liability if your pet injures a non-household member or damages their property.

What dog breeds are excluded from renters insurance?

There is no industrywide list of restricted breeds. Some providers may place restrictions on breeds deemed “dangerous,” including pit bulls, Rottweilers, Dobermans, Akitas, Chow Chows, and others. Review your policy documents or call your insurer to see which restrictions apply.

Does renters insurance cover pet damage to a neighbor's property?

Generally, yes. If your dog damages a neighbor's fence, digs up landscaping, or destroys other property that belongs to someone else, renters insurance liability coverage will often help pay for the repairs or replacement costs, up to your policy limits.

What is standalone pet liability insurance, and do I need it?

Standalone pet liability insurance is a separate policy meant specifically to cover pet-related liability claims. It may be an option if your renters insurance company excludes your dog's breed, limits pet-related coverage, or refuses to insure your pet altogether.

Does renters insurance cover exotic pets?

Dogs and cats are typically covered under standard renters insurance, but animals like reptiles, primates, large birds, and other exotic pets may be excluded. Check your policy or contact your renters insurance company to confirm whether nontraditional pets are covered.

Will filing a pet-related claim raise my renters insurance rate?

Filing any renters insurance claim could raise your rate, including a pet-related one. It is not guaranteed to happen, and the severity may depend on the size of the claim, your claims history, the insurer's underwriting guidelines, and whether the incident involved injuries or property damage.

Source: Yahoo Finance