Expensive Electronics Increasing Cost of Lightning Claims

The increasing value of consumer electronics has led to the cost of homeowners claims for lightning damage to rise by 28 percent over the last four years, the Insurance Information Institute said.

I.I.I. said it conducted an analysis of homeowners insurance data and found there were more than 177,000 lightning claims in 2007, causing nearly $1 billion in insured losses. In 2006, the I.I.I. said, there were more claims, about 256,000, but they caused less damage—over $880 million in insured losses.

An average claim for lightning in 2007, I.I.I. reported, was $5,321 compared to $3,446 in 2006. The average cost per claim doubled between 2004 and 2007, the I.I.I. said.

“Widescreen TVs, home entertainment centers, multiple computer households, gaming systems and other expensive devices are having a significant impact on claims losses,” said Loretta Worters, vice president of the I.I.I., in a statement.

Ms. Worters also warned that this year’s increased tornado activity may push up the number of lightning claims in 2008, since tornadoes are usually accompanied by severe thunderstorms.

The I.I.I. recommended that homeowners have a licensed electrician install a lightning protection system, which directs the destructive power of a lightning strike safely to the ground. The I.I.I. also said homeowners should use surge protectors and unplug expensive electronic equipment when a storm is approaching.