Report: Video Games Drive up Cost of Lightning Strike Claims

We all know that lightning is Mother Nature's kryptonite for high priced electronics, and according to Insurance Information Institute, the cost of insurance claims related to damage from lightening has doubled between 2004 and 2011, even as the number of actual claims has gone down. The trade group representing the insurance industry says that expensive televisions and video games are the root cause of these claims.

The Insurance Information Institute, in a study released on Thursday, found insured losses related to lightning strikes reached nearly $1 billion in 2011. That was actually down from a year earlier, and the number of total claims also fell.

On the plus side, the institute said that the increased use of lightning or surge protection equipment in homes was responsible for the decline in claims. From 2004 to 2011, the number of paid claims fell by about 33 percent.

But the cost of claims related to lighting strikes and high priced home entertainment electronics that get fried in the process has increased 93 percent to $5,112 over that same time period.

The groups says that flat-screen TVs, computers and videogame consoles are susceptible to power surges related to lightning strikes and are the core cause of expensive claims.

And since lightning happens just about everywhere it is not surprising that the National Lightning Detection Network recorded close to 23.4 million lightning flashes nationwide in 2011.

At the end of the day it sounds like the insurance industry is upset that it has to actually pay out some of the money it frequently charges its customers…

Source: Propertycasualty360

Power electric charge vector illustration © 2012 Vjom, provided by Shutterstock.

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