After analyzing homeowners' insurance data, the Insurance Information Institute (I.I.I.) determined that the cost of homeowners' claims for damages stemming from lightning strikes has increased by 28 percent over the last four years. The non-profit agency found there were more than 177,000 lightning claims in 2007, causing nearly $1 billion in insured losses. The I.I.I. puts the current average lightening-related claim at $5,321, a leap from the 2006 average of $3,446, which was based on 256,000 lighting claims causing more than $880 million in insured losses.
In terms of quantity, claims fell by nearly 36 percent. However, the average cost per claim doubled between 2004 and 2007.
“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 significantly impacting claim losses.”
Worters noted that given this year's record tornado activity and the fact that tornadoes are usually accompanied by severe thunderstorms, it is likely that the number of such claims will increase substantially in 2008.
Standard homeowners' and business insurance policies cover damages inflicted by lightning, such as fire. Some policies also provide coverage for power surges that are the direct result of lightning striking a home or a business. The comprehensive portion of an auto insurance policy may cover this type of damage as well.
A chart detailing homeowners' insurance claims and payouts for losses related to lightening can be accessed here.
Interested in more catastrophe news and in-depth articles? Head over to Claims' catastrophe channel for more information.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
