Lightning zaps insurers for $1 billion a year

When lightning strikes, it can cause catastrophic damage. This week, a lightning bolt is suspected to be the cause of a deadly plane crash. Ethiopian Airlines Flight 409 had roughly 90 people on board when it crashed into the Mediterranean Sea on Monday. No survivors have been found.

Besides the loss of human life, insurance companies report that lightning causes millions of dollars in property claims damage each year. In 2008, for the first time ever, lightning caused more than $1 billion in insured losses, according to the Insurance Information Institute (III). That’s an increase of 13 percent from 2007 and nearly 45 percent from 2004 to 2008.

There were roughly 246,000 lightning claims reported in 2008. III estimates the average claim to be $4,329. Insurers blame the increase on the large number of storms that occurred in 2008. Damage caused by lightning, such as fire, is covered by standard home insurance and business insurance policies.

Some policies provide coverage for power surges that are the direct result of lightning, according to III. Car insurance policies also cover lightning damage if you have comprehensive coverage.