US lighting-related claims on the rise as insurers pay over $1.2bn to homeowners in 2023: Triple-I

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In 2023, over $1.2bn were paid out resulting from lightning-caused US homeowners insurance claims to more than 70,000 policyholders according to the Insurance Information Institute (Triple-I).

After compiling national insurance claims data, Triple-I estimated that the total value of lightning-caused US homeowners insurance claims was up more than 30% in 2023, to $1.27bn from $950mn in 2023.

It also estimated that the number of lightning-caused US homeowners insurance claims increased by 13.8% between 2022 and 2023, from 62,189 to 70,787, with numbers from the top 19 claims states contributing to more than half (57%) of the total.

Additionally, Triple-I analysts found that the average cost per lightning-caused claim increased 14.6% from $15,280 in 2022 to $17,513 in 2023.

Drenching thunderstorms with lightning are the result of severe convective storms which are created by warm, moist air rising from the earth.

As they manifest in various ways, lightning, to tornadoes, hail, or destructive straight-line winds can also result from these storms, which are the most damaging natural catastrophes in the US according to experts.

“Rising inflation, including higher replacement, construction and labor costs impacted claim costs for the year,” said Sean Kevelighan, CEO, Triple-I. “Lightning Safety Awareness Week highlights the dangers lightning poses to life and property and how insurers and policyholders are reducing these risks through effective mitigation efforts.”

The state of Florida, which usually is the one with the most thunderstorms, remained the top state for number of lightning claims in 2023, with 6,003. However, Texas had the highest average cost per claim at $41,654.

Standard homeowners insurance policies cover damage caused by lightning, such as fire. Some policies provide coverage for power surges that are the direct result of a lightning strike.

The post US lighting-related claims on the rise as insurers pay over $1.2bn to homeowners in 2023: Triple-I appeared first on ReinsuranceNe.ws.

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