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 $943 billion in insured losses. That means in terms of quantity, claims fell by nearly 36 percent from the 256,000 claims made in 2006.
But that's where the good news ends. The average expense associated with each claim doubled between 2004 and 2007. The I.I.I. puts the current average lightning-related claim at $5,321, a leap from the 2006 average of $3,446.
So why are claim expenses increasing even while occurrences are dropping? “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 painted a bleak outlook for 2008 by noting this year's record tornado activity. She said that tornadoes are usually accompanied by severe thunderstorms, which means it is likely that the number of lightning claims will increase substantially this year.
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.
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