Lightning Caused $1.3 Billion in U.S. Homeowners Claim Payouts in 2021: Triple I

According to the Insurance Information Institute (Triple I), more than $1 billion in lightning-caused U.S. homeowners insurance claims were paid out to 60,000-plus policyholders in 2021, with California accounting for 40% of that total ($523 million).

Source: I.I.I. | Published on June 22, 2022

lightning insurance claims

The Triple-I discovered the following based on national insurance claims data compiled to coincide with Lightning Safety Awareness Week (June 19-25):

  • The total value of lightning-caused homeowners insurance claims in the United States fell by more than 36% in 2021 ($1.31 billion) compared to 2020 ($2.06 billion).
  • The number of lightning-caused homeowners insurance claims in the United States fell by more than 15% between 2020 and 2021, continuing a downward trend that began in 2017 with a drop of more than 28% from 85,000 to 60,000-plus.
  • The average cost of a lightning-caused claim fell by 25%, from 28,885 in 2020 to 21,578 in 2021.
  • Despite steady decreases in the number of lightning-caused homeowners insurance claims over a five-year period (2017-2021), the average cost per claim is up 100 percent in the same timeframe ($10,781 to $21,578).

"The average cost per claim varies from year to year," said Loretta Worters, a vice president with Triple-I, "but it has been especially high in the last two years due to lightning fires across the country."

The astronomical 2020 insured loss payout figure was caused in part by the CZU August Lightning Complex fire in California, which was sparked by lightning. Multiple fires raged through Santa Cruz and San Mateo counties, killing at least one person. Alaska is currently battling a wildfire caused by lightning in the state's southwest.

"Lightning not only causes deadly fires," Worters explained, "but it can also cause severe damage to appliances, electronics, computers and equipment, phone systems, electrical fixtures, and a home's electrical foundation." The resulting damage may be far greater than the homeowner realizes. Delays in the supply chain are also driving up the prices of appliances and electronics."

With 5,339 lightning claims in 2021, Florida remained the top state for the most thunderstorms, followed by Texas, Georgia, and California, in that order. California had the highest average cost per claim, at $154,574, with 3,381 lightning claims.

Lightning damage, such as fire, is covered by standard homeowners insurance policies. Some homeowners policies include coverage for power surges caused by a lightning strike.