If you research on the Internet, you'll find insurance companies that cover pets specifically. I keep parrots, but my insurance company won't cover them under my homeowners insurance...I have to buy a special policy, and then they won't cover death from illness and certain other things. They won't cover my dogs either without special riders and extra money.
An insurance company doesn't dictate what exotic animals a person can own, but they don't have to offer coverage either. If you have the money, you can pay many insurance companies to cover your pets for certain things, but this coverage isn't automatically part of homeowners insurance.
Most homeowners policies do not increase the rates due to possession of a dog. Every application for homeowners insurance does ask if you have certain dangerous breeds of dogs, exotic pets, or a dog who has a bite history. If you do have one of these breeds, an exotic pet, or one with a bite history, the company will usually not agree to issue a home insurance policy. A few companies will agree to issue the policy if you agree and sign an exclusion for animal liability.
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