Lightning caused $1.3B in U.S. homeowners claims

While the total value of lightning-related homeowner claims fell 36% year on year, more than $1.3 billion in property insurance claims were caused by naturally occurring electrostatic discharge in 2021, according to the Insurance Information Institute (Triple-I).

The average cost per claim increased 100% from 2017-2021, according to Triple-I, which noted the average claim total this past year was more than $21,000 despite a steady decrease in the number of claims during the five-year period.

“The average cost per claim is volatile from year to year, but it has been particularly high in the past two years because of lightning fires throughout the country,” Loretta Worters, a vice president with the Triple-I, said in a release.

While the average claim cost in 2021 was up compared to 2017, it was actually down year on year. The average cost per claim was nearly $29,000 in 2020, which saw more than $2 billion paid out for lightning-related claims. Overall, lightning-related homeowners claim volume fell around 15% from 2020-2021.

The CZU August Lightning Complex fire in California, which caused multiple fires in Santa Cruz and San Mateo counties, was responsible for driving the large payout number during 2020, Triple-I reported.

“Not only does lightning result in deadly fires,” said Worters, “it can cause severe damage to appliances, electronics, computers and equipment, phone systems, electrical fixtures and the electrical foundation of a home.  The resulting damage may be far more significant than a homeowner realizes. Delays in supply chain are also sending appliances and electronics prices higher.”

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