Reduced Property Damage Risk
Over 20 million cloud-to-ground lightning strikes are reported every year in the United States, with direct damage to properties pegged at nearly $1 billion annually. Installation of a lightning rod costs in the range of $1,500 to $3,000, mitigating those risks by safely grounding the electrical surges and reducing chances of fire and structural damages by over 90 percent, according to industry reports.
Within a single thunderstorm season in 2019, a Florida residential community reported 15 house fires from lightning strikes. No incidents of fire were reported among homes equipped with lightning rods in the same area. Claims for fire-damaged properties usually range from $10,000 to $75,000.
Insurance companies therefore, give as high as 15% discounts on premiums for properties with a valid lightning protection system. Assuming the annual insurance premium for a commercial property comes to US$ 10 000, the savings here would translate into US$ 1,500 per annum. A lightning rod enhances the resalability of a property by increasing perceived safety due to the protective installations and thus commands a price premium as high as 5 percent in property trading activities.
A lightning strike produces more than 1 billion volts of electrical energy and as much as 30,000 amperes-enough to destroy electronic devices in their tracks. A single HVAC system alone can cost upwards of $5,000 to $15,000 to replace, while repairs for industrial-grade machinery can be much higher at over $100,000 per unit. As revealed by a survey conducted by the Insurance Information Institute, businesses that remain without lightning protection report about a 40% increase in downtime due to electrical interruptions.
Decreased Fire Risk
In fact, according to the estimates provided by NFPA, lightning-induced fire was the cause of more than 22,600 structural fires across the United States within the one-year period alone at over $451 million in direct property damages. Residential properties are one of those entities that are mostly affected when such fire incidences would in most instances force home repairs pegged between 10,000 and 100,000 dollars per structure. These rods can safely divert high-voltage electrical energy into the ground, reducing the chance of a fire by more than 85%, according to various industry studies. Installation costs range from $1,500 to $3,000 for a typical home.
A lightning strike ignited a fire at a Texas retail warehouse, causing over $2.5 million in damages. After a lightning rod system was installed for $12,000, no further fires were reported at the facility, even though the facility was struck a number of times over the succeeding years. Many insurance companies give back some of this reduced risk by providing discounts on premiums, up to 15%, which can amount to $3,750 per year for an annual premium of $25,000 for a commercial property.
often suffer devastating losses due to the lightning striking a silo or barn. An Iowa case study reported one strike that destroyed a barn containing livestock and machinery with a value of $750,000. That farm installed a whole-farm lightning protection system for $5,000 and did not suffer such losses during the following years.
The flash fire that struck a Florida hospital because of lightning caused an injury with damages of $4 million and temporarily relocated patients. This was after an installation of a lightning protection system for $50,000 to protect patients and save about $500,000 annually from probable fire causalities.
Lower Liability Claims
In fact, according to the estimates provided by NFPA, lightning-induced fire was the cause of more than 22,600 structural fires across the United States within the one-year period alone at over $451 million in direct property damages. Residential properties are one of those entities that are mostly affected when such fire incidences would in most instances force home repairs pegged between 10,000 and 100,000 dollars per structure. These rods can safely divert high-voltage electrical energy into the ground, reducing the chance of a fire by more than 85%, according to various industry studies. Installation costs range from $1,500 to $3,000 for a typical home.
A lightning strike ignited a fire at a Texas retail warehouse, causing over $2.5 million in damages. After a lightning rod system was installed for $12,000, no further fires were reported at the facility, even though the facility was struck a number of times over the succeeding years. Many insurance companies give back some of this reduced risk by providing discounts on premiums, up to 15%, which can amount to $3,750 per year for an annual premium of $25,000 for a commercial property.
often suffer devastating losses due to the lightning striking a silo or barn. An Iowa case study reported one strike that destroyed a barn containing livestock and machinery with a value of $750,000. That farm installed a whole-farm lightning protection system for $5,000 and did not suffer such losses during the following years.
The flash fire that struck a Florida hospital because of lightning caused an injury with damages of $4 million and temporarily relocated patients. This was after an installation of a lightning protection system for $50,000 to protect patients and save about $500,000 annually from probable fire causalities.
Protects Expensive Electronics
According to the insurance industry's statistics, the average number of liability claims attributed to lightning-induced damage across the United States is approximately $150 million annually. In the case of a strike causing neighbour property damage, for instance, legal claims can be within the ranges of $10,000 to $50,000 depending on the extent of damages.
For example, a company paid $3 million in liability claims after several attendees were injured from a lightning strike at an outdoor event it was hosting. Since the incident, the company has invested $25,000 in a lightning protection system for its facilities and outdoor venues.
A school in Arizona experienced a terrible incident related to lightning when one of the students was injured during the storm, and the resultant legal claims exceeded $1.2 million. This school district installed the rods across all the buildings and outdoor sports areas for $50,000 and reported no incidents of lightning strike over the next decade.
Suburban: lightning strikes can destroy the shared fences, utilities or even trees that fall to neighbors' properties; those claims range from $5,000 to $30,000. A homeowner with a house in Pennsylvania saw a $2,000 installed system after a strike occurred and caused a $15,000 liability claim by taking out a neighbor's pool and landscaping. Since installation, no further claims have occurred, and the cost of the homeowner's insurance premium is reduced by 10%, saving $300 annually.
Qualification for Discounts
Many insurance providers give a premium reduction of 5% to 15% for homes and businesses that are installed with certified lightning protection systems. For instance, a homeowner who pays an annual premium of $1,500 can save between $75 and $225 annually. These savings translate to $750 to $2,250 over a 10-year period, which will go a long way in offsetting the installation cost of a lightning rod system that costs between $1,500 and $3,000.
One Illinois retail store paid $10,000 per year for property insurance and received a 10 percent discount-after installing a $5,000 lightning protection system-it saved $1,000 per year. In five years, this savings alone was more than the installed cost, and the store avoided possible damages from the potential strike estimated at $25,000.
A school district in Texas, which pays $100,000 per year for comprehensive insurance coverage, installed lightning rods across its campuses for $50,000. The district received a 15% reduction in premiums, saving $15,000 annually. Over five years, these savings totaled $75,000, covering the initial investment while ensuring that students and staff are kept safe.
