Pet coverage can be a healthy policy

When Merlin was diagnosed last year with a rare form of lymphosarcoma in her lungs, Christine Mazzucca knew the vet bills for her beloved cat would be huge.

She was right: The bill topped $6,000, though she was fortunate that nearly half was covered by Merlin's pet insurance policy.

Today, Merlin is in remission and, although it's a gamble, Mazzucca, 39, said paying the monthly premiums for her dog Myles, and three cats, Merlin, Drac and Pheobe, gives her peace of mind.

"You just want to make sure if something really bad happens you're not going to be forced to put your animal to sleep if you don't have the money," said the Web designer from Riverdale in the Bronx.

Sixty-three percent of U.S. households own a pet, and last year they spent a staggering $38.4 billion on them, reports the American Pet Product Manufacturers Association. Of that, about $9.4 billion was for veterinary care.

While the sale of pet insurance is expected to reach $250 million in 2007, up 25% from 2006, according to a report by Packaged Facts, a marketing research firm, only 3% of dog owners and only 1% of cat owners have signed up for coverage.

"That leaves a lot of untapped pet owners out there," said Brian Iannessa, spokesperson for Veterinary Pet Insurance, the oldest and largest pet health insurance company in the U.S. Its first policy was written in 1982 for one of the nine dogs that played Lassie, and the company has since grown to cover 415,000 policies.

With pet insurance, policyholders generally visit any licensed veterinarian, pay the bill and then submit a claim.

Monthly premiums can run as high as $60 a month, but most average about $25 to $30 a month for policies that cover preventative care, illness and emergencies, and vary according to a pet's age, condition and breed.

Ada Nieves, who lives in the East Village and designs clothing for dogs, pays about $1,000 per year on pet insurance premiums for her four Chihuahuas - Tabasco, Vanilla, Cinnabon and Tequila - money that she said is well-spent.

"I know there are others who don't feel it's necessary until there is an emergency and they wish they wish they had some type of coverage to lower the cost," Nieves said.

While most pet owners will do anything treat their animal companions, for some, the numbers just don't add up.

Aliki Caloyeras, 33, a doctoral student, estimates she's racked up tens of thousands of dollars on medical care for her beloved 13-year-old Fox terrier, Petey, including $3,000 for surgery to repair a dislocated shoulder.

Petey now has weekly physical therapy sessions at the Animal Medical Center in Manhattan, and requires frequent check-ups, including pricey tests and blood work, in addition to a special prescription diet.

Still, she's never considered pet insurance. "I am not convinced that it would actually save any money," said Caloyeras, who lives on the upper West Side of Manhattan.

An unexpected entry into the pet insurance business is the ASCPA, which began offering its own health insurance plan in October through Hartville Group.

And health coverage for pets is increasing as an employee perk. The Museum of Modern Art, HSBC Bank, Jet Blue and Viacom are some of the 1,600 U.S. employers that offer the voluntary benefit for employees who own pets.

Critter coverage

VPI Pet Insurance: petinsurance.com
PetCare: petcareinsurance.com
ASPCA Health Insurance: aspcapetinsurance.com
PetFirst Health: carepetfirsthealthcare.com
AKC Pet Healthcare: akcphp.com/BHIA
ShelterCare: sheltercare.com
Pets Best Insurance: petsbest.com
Pet Assure: petassure.com
CareCreditcarecredit.com