Home insurance claims due to lightning top $1 billion in 2010

Both home insurance claims and payouts for damages caused by lightning rose significantly from 2009 to 2010, a recent study from the Insurance Information Institute (I.I.I.) revealed.

The weather has certainly been a frequent topic in the news recently, with massive damage being seen throughout the U.S. as a result of both tornadoes and strong thunderstorms. Many homeowners in coastal regions are also well aware that it is currently hurricane season.

According to the I.I.I., homeowners in the U.S. made more than 213,000 home insurance claims as a result of lightning damages in 2010. This is a 14.8 percent increase from 2009, when nearly 186,000 claims were made.

The total cost involved in lightning claims grew at almost twice the pace from 2009 to 2010. Total home insurance payouts for lightning claims in 2010 topped $1.03 billion, which is a 29.5 percent increase from 2009, when total payouts amounted to $798 million.

The average cost per claim grew 12.8 percent year over year, the I.I.I. said, with the average cost in 2010 amounting to $4,846, up from $4,296 in 2009. Loretta Worters, vice president of the I.I.I., pointed to the “huge increase in the number and value of consumer electronics in homes” to explain the rise in average cost per claim.

“Plasma and high-definition television sets, home entertainment centers, multiple computer households, gaming systems and other expensive devices—which can all be destroyed by power surges—are having a significant impact on claims losses,” Worters said in a statement.

Lightning damage is typically covered by standard homeowners insurance and business insurance policies, the I.I.I. said, while for auto insurance, coverage for damages caused by lightning is typically found in the comprehensive portion of a policy (which is often optional).

Posted in: Home Insurance

Home Insurance News: This article was published on 6-24-2011 at 8:48 am.

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