Does Homeowners Insurance Cover Lightning Strikes?
Homeowners insurance generally covers lightning damage, but there are some exceptions to keep in mind. Our guide explains when and how your insurance company will cover or pay for lightning strikes, as well as what homeowners can do to mitigate damage or issues when filing claims. Here's when a homeowners policy will (and will not) cover you, as well as how to ensure you're adequately protected.
How homeowners insurance covers lightning damage
A lightning strike inside or outside your home can start a fire, destroy sensitive appliances, damage electronics and wiring inside the walls, and even injure you while you're inside. The good news is that lightning strikes and lightning-caused fires are covered perils in almost all homeowners insurance policies, with no exclusions. A standard homeowners insurance policy should also cover the following items:
- Personal property, such as electronics, home appliances, furnishings, or other interior possessions damaged or destroyed by a lightning strike. Most insurers provide coverage for personal belongings at 50 to 70 percent of the amount of insurance you have on your home's structure.
- Additional living expenses, meaning the cost of living elsewhere while your damaged home is repaired or rebuilt. This coverage usually amounts to about 20% of the home's value.
- Other structures, such as damage to a garage or shed on your property, are typically covered up to 20% of the value of your dwelling coverage limit.
How insurers treat lightning damage
According to Leigh Needelman, CEO and president of Florida Assurers, Inc., lightning is typically defined for insurance purposes as "naturally generated electricity from the atmosphere." It is generally classified into three types:
Lightning strike: A bolt of lightning strikes your home or other property as it travels from the atmosphere to the ground. This type of lightning is known to cause the most damage, such as fire and charring. "This is generally the easiest claim to collect because the damage is obvious," Needelman says.
Near miss: Lightning strikes near the home but does not hit the structure directly. In this case, the damage is typically less severe. In such cases, determining the cause of damage may be more difficult for the insurance company. Artificially generated current, such as sparks from a power company's electrical lines or transformers, can cause damage similar to a near miss, but is typically not covered by homeowners insurance.
Ground surge: A lightning strike causes a spike in electricity throughout an area. This is the most frequently reported lightning-related claim. Because the presence of a ground surge caused by a nearby lightning strike can be difficult to prove, fewer claims for this type of damage are paid out.
How to protect your home from lightning
A little common sense can go a long way toward protecting you from lightning hazards:
- Each floor of your home should have working smoke detectors, flashlights, and fire extinguishers.
- Connect your essential appliances and electronics to compatible surge protectors.
- If you hear loud thunder, stay inside and avoid coming into contact with standing water in sinks or bathtubs.
- Be aware of the season — lightning is more common in late summer afternoons and evenings.
Choose the right amount of coverage
Even in areas where lightning strikes are common, homeowners do not need to purchase additional lightning coverage. If your home is adequately insured by homeowners insurance, lightning is a peril that is covered, and there is no specific claim limit.
"I would not necessarily recommend increasing your coverage solely to protect against lightning strikes," Hank Wilson, owner of Wilson Insurance & Financial Planning, says. "However, I recommend that you review your policy annually to ensure that the coverage is consistent with current replacement cost estimates."
Extra protection can be worth the investment
The installation of an electrical ground, grounded weathervane, lightning rod, and surge suppressors in your home may not provide adequate lightning protection. As a result, many experts recommend installing a complete lightning protection system. Lightning protection systems intercept lightning strikes and provide a safe and efficient path for dangerous electricity to dissipate to the ground, diverting it away from the structure's electrical or plumbing systems.
A complete lightning protection system includes the following components:
- strike termination devices
- aluminum or copper braided cable conductors
- ground terminals or rods (installed at least 10 feet into the earth)
- interconnecting bonding to minimize side flashing (lightning that jumps between two objects)
- surge suppression devices at the electrical panel
Electrical, telephone, cable, or satellite TV lines that enter the structure should also be protected by the system. Furthermore, any tree within 10 feet of the house or taller should have its own lightning protection system to prevent side flashing.
Advanced lightning protection should be installed by a UL-listed and LPI-certified electrician or contractor. Installation and equipment costs are typically less than 1% of the home's value.
Filing a claim for lightning damage
Here's what to expect if you need to file a claim for lightning damage:
- An adjuster will inspect the damage to your home after you file your claim.
- If the cost of repairing your home exceeds your policy's deductible, you must decide whether to file a claim.
- If you decide to file a claim, the adjuster will make you an offer for repairs.
- The settlement will be paid in two installments by your insurance company. The first half will be used to begin repairs. The second is the remaining repair cost. "You can accept the check right away if you are offered an on-the-spot settlement," Worters says. "If you discover additional damage later on, you can reopen the claim and file for an additional amount."
- When both the structure of your home and your personal property are damaged, you will typically receive two separate checks from your insurance company, one for each category of damage. If your home is uninhabitable while repairs are being made, you should receive a separate check for additional living expenses.
- It is important to note that most policies require claims to be filed within 60 days of the disaster.
It should be noted that comprehensive car insurance will cover your vehicle if it is damaged by a lightning strike.