Does homeowners insurance cover lightning?
Lightning strikes are common in the United States, but they can cause significant damage to homes and property when they occur. While the number of lightning-related homeowners insurance claims was lower in 2020 compared to 2019, the average cost per claim increased. In 2019, there were 76,860 lightning-related claims, with an average cost per claim of $11,971. According to the Insurance Information Institute, there were 71,551 lightning-related claims filed in 2020, but the average cost per claim increased to $28,885. (Triple-I).
Lightning strikes can cause structural damage to your home as well as damage to the electrical unit that powers your home and its contents. Lightning strikes can also damage nearby structures, such as trees or poles, which can cause additional damage to your home if it is in the path of the strike. Fortunately, having the right homeowners insurance coverage in place can help protect your finances by paying for repairs to your home if lightning damages it during a covered event.
Does homeowners insurance cover lightning strikes?
Most homeowner's insurance policies cover lightning-related damage. Your dwelling coverage under a standard homeowners insurance policy will pay for any damage done to the actual structure of your home.
Furthermore, standard homeowners insurance policies cover property damage such as a mailbox, deck, and electrical systems. Your property insurer would contribute to the repair costs up to the limits of your policy. A standard homeowners insurance policy includes loss of use coverage, which pays for any additional living expenses incurred while your home is being repaired as a result of a covered claim.
The good news is that because these are all covered under a standard homeowners policy, you usually do not need to purchase additional lightning strike coverage.
How insurers classify lightning damage
Lightning damage, which is caused by naturally occurring atmospheric generated electricity, is classified in several ways by insurers. Lightning damage is classified into one of three types:
- Lightning strike: A lightning strike occurs when lightning strikes your home from the atmosphere. A direct lightning strike usually causes the most damage to your property because it can cause fires, charring, cracks in your property, and damage to the contents of your home.
- Near miss: A near miss lightning strike is when the lightning strikes near your property but does not hit it directly.
- Ground surge: A ground surge is when lightning strikes the ground and causes an electricity spike in any area surrounding the home. Ground surges are common, but they can be difficult to prove because insurance companies want to see proof that the ground surge occurred.
Filing a claim for a lightning strike
You should be able to file a claim if a lightning strike strikes your home or property. It will, however, depend on how your property insurer assesses the lightning damage. Lightning damage is assessed differently by each insurance company. Here are a few options for filing a lightning strike claim:
- Assess the damage: If you believe lightning has struck your home or the area around it, identify the location of the damage when it is safe to do so. Take photos and write down the details of the lightning strike and damage done, including the time and date, once you've identified the damaged areas.
- Make a claim: Every homeowner's insurance company has its own claims procedure. You can file a claim with many insurers online, through your account, or by calling your agent or insurance company.
- Adjuster will come to your home: After a claim is filed, your insurer will send a claims adjuster to your home to assess the damage. The adjuster will interview you and take photos and notes on the damage.
- Receive your claims payment: You will receive a payment from your insurance company. If you are paid in installments, the first payment will be made when you begin the repairs, and the second payment will be made when the repairs are completed. If you receive a settlement, you can either accept the check or reopen the claim to dispute the amount.
How do I protect my home from lightning damage?
As a homeowner, you want to protect your investment in your home. You can protect your home from lightning damage in several ways, including:
- Check that your smoke detectors are operational. Lightning strikes can start fires, putting you and your home in danger. Check your smoke detectors on a regular basis and replace the batteries when they run low to ensure that they are always operational.
- Before a storm, unplug all electronics. Unplugging electronics during a thunderstorm can be hazardous. However, unplugging them before a storm can help prevent an electrical surge that could damage your electronics.
- Purchase a surge protector. During a lightning storm, a surge protector may protect your electronics. Surge protectors are available for your electronics as well as your entire home. The surge protector is typically wired directly into the main electrical panel if you want to protect your entire home.
- Keep a fire extinguisher nearby. If a lightning strike starts a fire, a fire extinguisher will be useful in minimizing or preventing damage to your home and property.
It is also best to stay indoors during a thunderstorm with lightning to keep yourself safe.