Lightning

Lightning

$1 Billion In Losses In A Flash

Insurance companies are becoming a lightning rod for large thunderbolt claims. According to the Insurance Information Institute (I.I.I.), more than 177,000 lightning claims were filed in 2007 totaling nearly $1 billion in insured losses. The I.I.I. puts the average claim for lightning at $5,321. By comparison, 256,000 lightning claims were filed in 2006 causing $880 million in insured losses, with an average claim of $3,446. The average cost per lightning claim rose 30 percent between 2004 and 2006, even as the number of claims fell by nearly eight percent.

Paid losses are increasing despite the declining number of claims because of an “explosion in the number and value of consumer electronics in homes,” said Loretta Worters of the I.I.I. “Widescreen TV’s, home entertainment centers, multiple computer households, gaming systems, and other expensive devices are significantly impacting claims losses.”

Worters also noted that given this year’s record tornado activity and the fact that tornadoes are usually accompanied by severe thunderstorms, it’s likely that the number of lightning claims will increase substantially in 2008.

While lightning may strike from out of the blue, there are steps you can take to protect your property. In fact, lightning is the only natural disaster we can economically afford to protect ourselves against. The I.I.I. offers the following tips to protect homes and businesses against power surges and lightning strikes.

Install a lightning protection system

A lightning protection system does not prevent lightning from striking; it provides a path for the lightening to follow, rerouting the lightning energy safely into the ground. The system includes a lightning rod or air terminals at the top of the house that can be disguised to look like a weather vane, and wires to carry the current down to grounding rods at the bottom of the house.

Use surge protectors

Today’s sensitive electronic equipment is particularly vulnerable to lightning. To assure the highest level of protection, UL-listed surge arrestors should be installed on electrical service panels. Surge arrestors protect against damaging electrical surges that can enter a structure via power transmission lines. Installations typically include surge arrestors for the main electric panel, as well as incoming phone, cable, satellite and data lines.

UL-listed transient voltage surge suppressors can also be installed to protect specific pieces of electronic equipment. Power strips offer little protection from electrical power surges.

Unplug expensive electronic equipment

As an added precaution, unplug expensive electronic equipment such as TVs, computers and the like if you know a storm is approaching.

A Farm Bureau Mutual Insurance Company of Idaho homeowners policy can help insulate you from the financial damage of a lightning strike. A Farm Bureau Insurance policy covers any property damage caused by lightning including fire and damage to electronic equipment. The comprehensive portion of a Farm Bureau Insurance auto policy will also cover lightning damage.

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