Lightning strikes cost U.S. insurers $1 billion in 2011

Lightning strikes cost nearly $1 billion in insured losses in 2011, the Insurance Information Institute (I.I.I.) notes.

An analysis of homeowners insurance data by the I.I.I. and State Farm found there were more than 186,000 lightning claims in 2011, down nearly 13% from 2010. “This decline may be due to increased use of lightning protection systems,” the I.I.I. reports.

However, even as the number of paid lightning claims has fell by more than 33% between 2004 and 2011, the average cost per lightning claim has increased.

The I.I.I. puts the average lightning claim at $5,112 in 2011, up 5.5% from 2010. In 2004, the average cost per lightning claim was $2,646.

“The number of paid claims is down, but the average cost per claim continues to rise, in part because of the huge increase in the number and value of consumer electronics in homes,” said Loretta Worters, vice president of the I.I.I. “Plasma and high-definition television sets, home entertainment centers, multiple computer households, smart phones, gaming systems and other expensive devices — which can all be destroyed by power surges—continue to have a significant impact on claims losses.”

Another reason behind the increased claim costs may be due to a spike in consumer electronics prices, the I.I.I. says. “Product shortages in 2011 through the first quarter of 2012 from places such as Thailand and Japan, which were affected by supply chain issues, may have also contributed to the increased claim costs.”