I.I.I. Study Finds Insured Losses Overall Continue To Trend Upward, Despite 鈥09 Respite
INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500; media@iii.org
NEW YORK, March 31, 2010鈥 They say that lightning never strikes in the same place twice, but for insurers it strikes hundreds of thousands of times annually, causing millions of dollars in damages. In fact, the average cost of homeowners claims for damage due to lightning strikes has increased significantly over the last five years, according to the 精东影业 Information Institute (I.I.I.).
An analysis of homeowners insurance data by the I.I.I. found there were 185,789 lightning claims in 2009 costing $798 million, with an average claim totaling $4,296. These losses ranged from damage to expensive electronic equipment to structural fires that destroyed entire homes.
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Insured losses related to damage from lightning strikes topped more than $1 billion in the U.S. for the first time in 2008. The number of lightning claims and the dollar amount of those losses fell 25 percent from 2008 to 2009, reflecting fewer storms in 2009.听The overall trend, however, shows insured losses continue to climb, with the average cost per claim up 39 percent over the past five years.
鈥淢ake no mistake, lightning plays a substantial role in the damage done to homes and businesses every year,鈥 said Loretta Worters, vice president with the I.I.I.听鈥淏ut some losses are preventable when using the proper building protection systems such as surge protectors, lightning rods, conductors and ground rods.鈥滾ightning not only damages properties, but can cause injury or death.听According to the National Oceanic and Atmospheric Administration (NOAA), there were 34 lightning fatalities in 22 states and Puerto Rico in 2009.听Florida, considered the 鈥渃apital鈥 of lightning strikes, had five deaths; Texas and North Carolina had three each.
HOMEOWNERS INSURANCE CLAIMS AND PAYOUT FOR LIGHTNING LOSSES, 2005-2009
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Number of paid claims
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265,700
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256,000
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177,100
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246,200
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185,789
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-30.1%
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Insured losses
($ millions)
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$819.6
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$882.2
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$942.4
|
$1,065.5
|
$798.2
|
-2.6
|
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Average cost per claim
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$3,084
|
$3,446
|
$5,321
|
$4,329
|
$4,296
|
39.3
|
Source: 精东影业 Information Institute.
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Damage caused by lightning, including fire following, 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. There is also coverage for lightning damage under the comprehensive portion of an auto insurance policy.
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The (LPI) says that lightning protection is a specialty discipline and expertise is required for system design and installation.听Systems for homes and businesses should be installed by trained and experienced LPI-certified and UL-listed specialists.听LIP offers these safeguards for property owners seeking a qualified lightning protection specialist:
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- Make sure materials and methods comply with nationally-recognized safety standards of the LPI, (NFPA) and (UL).
- Only experienced and reputable UL-listed and LPI-certified lightning protection contractors are qualified to install lightning protection systems.
- Check references.听A qualified specialist should provide a list of references and affiliation with industry groups such as NFPA, the (ULPA), the (LSA) and LPI.听
- Ask about surge protection.听Lightning-induced surges can damage electronics and appliances.听A qualified lightning protection contractor can provide options for service entrance arresters and surge protection devices.
- Experience counts.听Be wary of start-up companies or contractors offering a 鈥減rice deal鈥 to install, fix or repair your lightning protection.
- When in doubt, contact. to locate your local Better Business Bureau to obtain reliability report information on a contractor before you hire them.
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The LPI offers a list of certified contractors across the U.S.听Visit the LPI for more information about lightning protection.
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The has these tips to reduce the risk of lightning damage:
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- Install a whole-house surge protector for your home or business.
- Include protection for electrical, telephone, and cable or satellite TV lines entering the house.
- It is important that all utilities (telephone, electrical, and cable or satellite TV) be bonded to the same grounding point. This will ensure proper operation of the surge protection system and will prevent ground potentials from developing on the electrical system.
- All utilities (telephone, electrical, and cable or satellite TV lines) should enter the structure within 10 feet of electrical service entrance ground wire.
- Install arc fault circuit interrupters on all electrical circuits.
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For more information on lightning, go to the .听For more information on protecting your home or business from lightning, go to .
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The I.I.I. is a nonprofit, communications organization supported by the insurance industry.