Florida's Lightning Claims: A Shocking Trend in Homeowners Insurance

Florida Leads in Lightning-Related Homeowners Insurance Claims

Florida, often dubbed the lightning capital of the nation, unsurprisingly topped the list for lightning-caused homeowners insurance claims in 2018, with 7,108 claims. This figure was followed by Georgia (5,539) and California (4,909), marking California's first appearance in the top three. Texas, which held the second position in 2016, slipped to fourth place with 4,559 claims.

Decline in Claims, But Soaring Costs

Despite a decrease in the number of lightning-caused homeowners insurance claims for the third consecutive year in 2018, the average cost per claim has significantly increased since 2016. According to the Insurance Information Institute (I.I.I.), more than $900 million was paid out in lightning claims in 2018 to nearly 78,000 policyholders. The cumulative value of claims caused by lightning rose by six percent between 2016 and 2018.

Factors Driving the Increase in Claim Costs

The rise in the average cost per claim can be attributed to increased labor and construction costs, as well as the growing consumer demand for smart home products. The average cost per claim increased by eight percent from 2017 to 2018, and by 21 percent between 2016 and 2018. This surge in costs is a significant concern for both insurers and homeowners.

To mitigate the risks associated with lightning strikes, homeowners are advised to install lightning protection systems, regularly inspect and maintain their homes, and consider purchasing comprehensive insurance policies that cover lightning damage.