A flash of lightning can cause devastating damage and expensive repairs for insurers and homeowners alike, and new research shows such instances are getting more severe.
Insurers paid out $1.2 billion across the country for lightning-caused home insurance claims in 2023, according to data from State Farm and the Insurance Information Institute (Triple-I). Florida had the most claims, at more than 6,000.
The data “highlights the dangers lightning poses to life and property, and how insurers and policyholders are reducing these risks through effective mitigation efforts,” Sean Kevelighen, CEO of Triple-I, said in a news release on the organization’s website.
What lightning costs
Severe thunderstorms drove loss statistics across the U.S. in the first half of 2024, global reinsurance company Munich Re reported.
“Weather-related natural disasters, especially in North America, are prominent once again in the loss statistics for the first half-year,” Thomas Blunck, Munich Re management board member, said in a news release on the company’s website. “It is considered highly likely that climate change plays a part in this trend.”
Insurers paid out more than $104 million in claims to Florida homeowners in 2023, according to Triple-I. The state led the nation in lightning damage claims. Georgia and Texas rounded out the top three, and Texas saw the most costly claims, as insurers paid out more than $194 million in the Lone Star State.
“Rising inflation, including higher replacement, construction, and labor costs, impacted claim costs for the year,” Kevelighan said in a release.
Florida has the most expensive home insurance in the country, largely due to weather-related disasters, rising repair and labor costs, and excessive insurance litigation, according to Insurify’s home insurance report. Florida’s average annual homeowners insurance premium is $10,996, per Insurify data.
What are the chances?
Multiple reports suggest the relationship between climate change and lightning is complex, but data shows that lightning strikes are increasing. The U.S. experienced more than 92 million lightning flashes in 2023 — an increase of 6.6% from 2022, according to data solutions company AEM.
Flash density is increasing and geographically shifting. The U.S. areas with the most storm activity experienced higher cloud-to-ground flash density in 2023 than in the previous six years, according to the Vaisala Xweather 2023 lightning report. A cloud-to-ground flash is lightning that connects with the earth, rather than just flashing with clouds, and is the type that can cause wildfires and strike people and homes.
Geography is also a major factor, and lightning in the U.S. is especially concentrated in the South and Midwest, according to the National Oceanic and Atmospheric Administration. Florida, for example, faces the most activity during its May–October storm season.
Countrywide, lightning will strike about one in 200 U.S. buildings per year, according to the National Lightning Safety Institute.
The increase in lightning strikes leads to more property damage and insurance claims. Claims are getting more expensive for insurers to pay due to rising labor and repair costs, leading to increased premiums for policyholders.
What’s next: How to prepare
“Mitigating the risks of lightning strikes starts with a thorough assessment before a storm,” Tim Harger, executive director of the Lightning Protection Institute, said in a news release. “Lightning protection systems play a crucial role in safeguarding homes, businesses, and communities from the potential downtime and destruction caused by lightning strikes.”
A full lightning protection system includes electrical surge protectors, gas piping protection, and a bonded path for lightning to travel from a rod to the ground, bypassing any building electrical systems, according to life safety company CertaSite.
A grounding system and surge protection devices are a good place to start, but only a qualified electrician or contractor should install them. Home or business insurers and electricians are good resources for initial questions about how to “lightning-proof” a structure, and property owners can find a contractor through the Lightning Protection Institute’s search tool.
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