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Lighting has ignited thousands of fires in Northern California in the past month, burning more than 400,000 acres and threatening more than 10,000 buildings across the region.

Among the largest fire still burning is the Basin Complex fire in Los Padres National Forest, which was only 3 percent contained as of July 1, 2008, and had burned 39,906 acres. That fire certainly disrupted business operations and families’ lives. Located in the Big Sur region, it destroyed 16 homes, all while authorities were advising more evacuations at press time. The fire also forced the closure of a scenic stretch of coastal Highway 1 and has driven away visitors at the peak of the tourist season.

Meanwhile, 27 fires were still actively burning the state as of July 1, and the U.S. Forest Service predicted conditions would get worse as the weather gets even drier and hotter, and as the fire season heads toward its traditional peak in late July and August.

“Our most widespread and/or critical lightning events often occur in late July or August, and we have no reason to deviate from that,” the agency’s report said.

Given this year’s significant potential for lightning strikes as well as wildfire losses, it’s crucial that homeowners and businesses are adequately covered. The cost of homeowners claims for damage due to lightning strikes has increased dramatically — up 28 percent over the last four years, according to the Insurance Information Institute. An analysis of homeowners insurance data by the I.I.I. found there were more than 177,000 lightning claims in 2007, causing nearly $1 billion in insured losses. The I.I.I. puts the average claim for lightning at $5,321. By comparison, in 2006, there were about 256,000 lighting claims, which caused more than $880 million in insured losses with the average claim totaling $3,446. The average cost per claim doubled between 2004 and 2007.

Meanwhile, a report recently issued by United Policyholders, a San Francisco consumer organization, noted that Californians are still recovering from last year’s fires, many without enough insurance to rebuild. While evaluating the survey, the Associated Press reported that many of those fire victims underinsured their properties, and that the value of their insurance had not kept pace with increasing construction costs.

Insurance companies say they can’t force people to pay for more coverage, as consumers seek lower premiums. Some in the industry criticized the survey, saying the results aren’t accurate or the consumer organization is not reputable. Regardless, given the data on wildfire and lightning losses, agents and brokers should use the survey results to spark a discussion with their customers.

Remind customers that damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies, and be sure customers are adequately covered. Some home and business insurance policies provide coverage for power surges that are the direct result of lightning. There is also coverage for lightning damage under the comprehensive portion of an auto insurance policy.

Now is the perfect time for policyholders to protect their belongings. Lightning might not strike twice, but remind your customers it only takes one strike or one fire to have a significant loss.

Topics Homeowners