Lightning Strikes: Declining Claims, Rising Costs in Homeowners Insurance

Lightning Claims on the Decline, Costs Soaring

The number of lightning-caused U.S. homeowners insurance claims has decreased over the past few years, yet the average cost per claim has increased, according to Insurance Information Institute (Triple-I) findings.

Smart Homes and Increased Vulnerability

James Lynch, chief actuary and senior vice president of Research and Education at the Triple-I, explains that homes are more susceptible to lightning damage because electronic systems have become more interconnected, especially in Smart Homes, which have an easy gateway to much of a home's electronic network, potentially damaging scores of devices and appliances at once.

Florida Leads in Lightning Claims, Texas in Costs

Florida, the state with the most thunderstorms, was the top state for lightning claims in 2019, with 6,821, followed by Texas (5,780) and California (5,100). Of the states with the largest number of claims, Texas had the highest average cost per claim at $15,278.

In recognition of Lightning Safety Awareness Week, the Triple-I and the Lightning Protection Institute (LPI) encourage homeowners to install a lightning protection system in their home. Tim Harger, executive director of LPI, emphasizes that the safest place in any lightning event is within a structure protected by a properly designed, inspected, and certified lightning protection system.

To locate an LPI-certified lightning protection system installer in your area, click here. U.S. lightning fatalities have also been declining, due partly to increased awareness of lightning danger. To learn more about lightning safety, click here.

For homeowners, it's crucial to understand the risks and take preventive measures. Installing a lightning protection system can significantly reduce the cost of claims and protect your home's electronic infrastructure.