Not everyone loves the pooch you raised from a puppy, or the watchdog pit bull you saved from the pound. Sometimes, your beloved pet and protector can become a terror to a visitor or a neighbor who walks near or to your home.

Each year, more than four million people are bitten by dogs, with roughly 800,000 of those bites resulting in injuries requiring medical attention. Fifty percent of those bites occur on the dog owner’s property.

If your dog bites someone, you may be liable whether the bite occurs on or off of your property. A homeowner’s or renter’s insurance policy will usually protect you against losses in dog bite incidents.

Most policies will carry $100,000 to $300,000 in dog bite liability coverage. But after a single incident, the carrier may exclude the dog from future coverage, increase the premium or even suggest that the owner get rid of the dog.

Some insurance companies are more likely to insure a dog if the owner takes it to behavior modification training, keeps it in a cage, or uses a muzzle. Still other insurance companies will require the dog owner to sign a liability waiver or charge more for specific breeds, such as pit bulls and Rottweilers.

Actual liability varies from state to state.  In some states owners are absolutely liable for the behavior of their dogs, while in other states, owners must have knowledge of their dog’s biting behavior in order to be held liable. In still other states, trespassers may not be able to sue when bitten by a dog on the premises.

Dog bite liability is generally inclusive of medical bills, time off work, pain and suffering and any property damage caused by the animal.

While the actual number of dog bite claims has fallen, the cost of each claim has risen, accounting for four percent of claims made against homeowner’s insurance policies. That translates into 15 percent of the total homeowner’s policy liability dollars paid out in 2005.

The case that will perhaps continue to cause ripples of change in dog bite liability laws and insurance coverage occurred in San Francisco, California.  In that case, a woman was killed by two dogs in the doorway of her apartment while the owner watched from across the hall. Both of the dog’s owners were jailed for several years and ordered to pay restitution.

You may consider your pet to be a family member, but its behavior with other humans can cause you a great deal of money. Take precautions to protect other people, and make certain that your insurance protects you.