III Report: Lightning Strikes Big When it Comes to Homeowners Claims
According to the Insurance Information Institute (I.I.I.), the cost of homeowners claims for damage due to lightning strikes has increased dramatically—up 28 percent over the last four years.
An analysis of homeowners insurance data by the I.I.I. found there were more than 177,000 lightning claims in 2007, causing nearly $1 billion in insured losses. The I.I.I. puts the average claim for lightning at $5,321. By comparison, in 2006, there were about 256,000 lighting claims, which caused more than $880 million in insured losses with the average claim totaling $3,446. The average cost per claim doubled between 2004 and 2007 even as the actual number of claims fell by nearly 36 percent.
“The number of claims is down, but the average cost per claim continues to rise, in part because of the explosion in the number and value of consumer electronics in homes,” said Loretta Worters, vice president of the I.I.I. “Widescreen TVs, home entertainment centers, multiple computer households, gaming systems and other expensive devices are having a significant impact on claims losses.”
Worters noted that given this year’s record tornado activity and the fact that tornadoes are usually accompanied by severe thunderstorms, it is quite likely that the number of such claims will be up even further, possibly substantially, in 2008.
Published on June 24, 2008
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