In fact, insurers paid out $790 million in lightning claims last year to nearly 100,000 policyholders, according to a new analysis by the Insurance Information Institute (I.I.I.) and State Farm.
Damage caused by lightning, such as house fire, is covered by your standard homeowners policy and some policies provide coverage for power surges that are the direct result of a lightning strike. This is true for renters insurance as well, however your renters insurance will only provide coverage to your personal belongings such as computers and televisions. In the case of fire, a renters insurance policy will provide coverage to other contents in your home – furniture, clothing and other contents items that are owned by you personally.
As James Lynch, vice president of information services and chief actuary of the I.I.I. says:
It’s due partly to the enormous increase in the number and value of consumer electronics. Just imagine if your $1,000 iPhone is plugged in charging along with your $1,800 laptop and a power surge fries your electronics. That’s a big hit to your wallet! This is where insurance steps in and provides coverage to replace these items.
It’s always a good idea to check your insurance policy, or better yet, call your local insurance agent to find out if there are any limits on electronics. Some policies limit electronics to $500 whereas other policies do not have any limit. If your home or renters insurance policy has a limit on these items, be sure to ask your agent what the cost would be to increase the coverage so that you’re properly insured.
