One of the “hot topics" in the 2022 legislative session surrounded the restriction on insurance companies to excluded specific breeds of dogs from a homeowner's or renter's insurance policy. House Bill 2323: Homeowner's Insurance; Dogs; Nondiscrimination goes into effect for new policies and renewals from and after June 30, 2023.

Can dog liability be excluded? YES. Just not based solely on the breed of the dog.

Can you ask a client if they own, or keep a dog on the residential premises? YES. Underwriters can't base any decisions of coverage or premium based on the breed of the dog.

Can insurance companies surcharge for dogs? YES. Just not based solely on the breed of the dog.

Get the common thread here?

E&O Concerns — If some of your companies are allowing dog liability to stay on the policy and some companies are excluding all dog liability – you need to know your markets. This is critical to avoid an E&O claim.

We are hearing from various companies that if the dog does not have a history of aggression/dog bites, then the dog liability coverage will continue. You need to know your markets. You need to pay attention to policies that may have been endorsed to exclude dog liability. READ THE POLICY. Know what you are selling.

Umbrella Concerns — It is possible that a primary homeowners' policy will allow the dog liability, but the umbrella (maybe even with the same company) will exclude dog liability based on the breed. Again, watch out for exclusion endorsements.

The IIABAZ has been hard at work with the Arizona Department of Insurance and Financial Institutions on getting clarification on this new law. DIFI recently released the FAQs. We strongly urge all personal lines staff to review the FAQs to become more familiar with the new law.

We encourage you to also communicate with your insurance markets to know how each company will be handling this exposure.

Bulletin and PDF of DIFI FAQs
Posted: 6/7/2023