Pet insurance for Westminster winner Hickory would cost hundreds a year

For owners of pooches like 85-pound Hickory, the Scottish Deerhound that was named top dog at the 2011 Westminster Kennel Club Dog Show, the costs of grooming a dog for the big time surpass $100,000. A small sliver of that big chunk of change likely goes toward pet health insurance.

So, how much would it cost to buy a pet policy for a 5-year-old Scottish Deerhound like Hickory? The price tag can easily jump past $700 a year, based on estimates obtained by InsuranceQuotes.com.

At Trupanion, a no-deductible policy for a dog like Hickory would run nearly $64 a month, based on the animal’s age, breed and location. With a $500 deductible, the Trupanion coverage would be more than $43 a month. Trupanion policies — which cover items such as surgeries, medications and diagnostic tests — have no payout limit and a 10 percent co-pay.

Purebred dogs such as Hickory, a Scottish Deerhound that won Best of Show at the 2011 Westminster Kennel Club Dog Show, are prone to hereditary conditions that bump up the cost of pet insurance.

Over at another pet health insurer, Embrace Pet Insurance, a zero-deductible option isn’t available. With the lowest deductible, $100 a year, a policy for a dog like Hickory would cost almost $83 a month — or nearly $1,000 a year. A policy with a $500 annual deductible would cost more than $38 a month. Those policies come with a 20 percent co-pay and a $10,000 annual cap on benefits.

Embrace currently insures only two Scottish Deerhounds, according to co-founder and CEO Laura Bennett. However, that number may rise, as experts predict heightened interest in ownership of Scottish Deerhounds, which are known for their height and rough coats.

According to Embrace, pet insurance for purebred Scottish Deerhounds costs more than for mixed-breed dogs. That’s because Scottish Deerhounds are much more likely than mixed-breed dogs to have hereditary conditions that are expensive to treat. For instance, a dog like Hickory has a high incidence of bone cancer, usually found in one of the legs. Veterinary expenses for bone cancer treatment, including leg amputation and chemotherapy, can exceed $8,000.

“Pet insurance that covers hereditary conditions is certainly something most pet owners appreciate in these circumstances,” Bennett says.

Some critics complain that pet insurance can be a waste of money. For instance, Consumer Reports found in 2010 that the policies it reviewed “were not worth the cost for a generally healthy animal.” That’s because none of the coverage plans would have paid more in benefits for a healthy dog than the premiums cost over a 10-year period.

However, Bennett says pet insurance reduces the financial risk of owning a dog or cat. In fact, executives at Trupanion emphasize that one of every two dogs and cats will suffer at least one major injury or illness during its life. Bennett points out that the cost of fixing a dog’s or cat’s broken leg averages $1,500.

“Even if you think you would stop medical treatment at an amount you can afford, would you really? … Would you put your dog or cat down for something very treatable but costly?” Bennett says. “We’ve discovered that in, actual fact, probably not. And you can’t buy the insurance after the condition happens.”

Americans keep nearly 82 million cats and more than 72 million dogs as pets. Pet owners spent $24.5 billion on veterinary medicine in 2009, more than double what they paid 10 years earlier, according to the North American Pet Health Insurance Association.

“Too many pet owners do not have a financial safety net for the unexpected injury or illness. This can place the veterinarian and the pet owner in an excruciating position of limiting care or choosing economic euthanasia of a beloved pet, rather than treatment,” says Dr. Bernadine Cruz, an adviser to the North American Pet Health Insurance Association.

–John Egan