Keep Costly Lightning Losses from Shocking Your Wallet!

Lightning Sparks Concerns for Insurance Industry and Property Owners as Storm-Related Claims Continue to Rise. 

 Lightning Protection Systems Can Safeguard Against Losses

Tornadoes, earthquakes, hurricanes, floods and wildfires have been responsible for major devastation in the U.S.over recent years, but intense lightning storms have also caused their share of share of damage and destruction.   In fact, lightning strikes cost more than $1 billion in insured losses in 2010 – a significant increase from 2009, according to the Insurance Information Institute (I.I.I.).

An analysis of homeowners’ insurance data provided by the I.I.I. found there were more than 213,000 lightning claims in 2010, up nearly 15 percent from 2009. These losses ranged from damage to expensive electronic equipment to structural fires that destroyed entire homes.

The I.I.I. estimated the average homeowner lightning claim at $4,846 for 2010, while in 2009 the average claim totaled $4,296.  The average cost per claim rose nearly 13 percent from 2009 to 2010 and more than 80 percent from 2004-2010, even as the actual number of claims fell by a little over 23 percent in the six- year period. (Note: claims costs for 2011 have not been released yet.)

The I.I.I. explained that the record losses were a result, in part, because of the large number of storms occurring in 2010 year.  (According to the I.I.I., catastrophe losses in 2010 totaled $13.6 billion.)

Since 2010 was a record year for tornado activity, and tornadoes are usually accompanied by severe thunderstorms, it was not surprising that the number of such claims increased substantially.

According to the I.I.I., damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies. Some home and business insurance policies provide coverage for power surges that are the direct result of lightning striking a home or business.  The I.I.I. also reminds homeowners that there is coverage for lightning damage under the comprehensive portion of an auto insurance policy.

How Homeowners Can Reduce their Risk of Lightning Damage:

• Have a lightning protection system installed for your home or business.
• Include protection for electrical, telephone, cable or satellite TV lines entering the structure.
• Make sure all equipment is UL-listed and properly labeled.
• Be sure the system is installed in accordance with the building(s) or structure(s), it should be designed and installed in accordance with accepted industry standards and with NFPA, LPI and UL requirements.  Contact LPI-IP at www.lpi-ip.com for options re: affordable quality-control home inspection services.
• Check references and work with a qualified, LPI-Certified Lightning Protection Specialist.  (A qualified specialist should provide a list of references and affiliation with industry groups such as NFPA, the United Lightning Protection Association, and the Lightning Safety Alliance(LSA).
• Experience counts.  Be wary of start-up companies or contractors offering a “price deal” to install, fix or repair your lightning protection.
• When in doubt, contact. www.bbb.org to locate your local Better Business Bureau to obtain reliability report information on a contractor before you hire them.

Lightning protection systems are designed to protect a structure and provide a specified path to harness and safely ground the super-charged current of the lightning bolt. The system neither attracts nor repels a strike, but receives the stroke and routes it harmlessly into the earth, thus discharging the dangerous electrical event.  A certified lightning protection system can protect your family and property and save you from an inconvenience and costly insurance claim.

FOR MORE INFORMATION ABOUT INSURANCE RESOURCES, VISIT: www.iii.org