75% of all HVAC systems inspected for lightning damage were not covered losses!
(PRWEB) August 21, 2012
The United States monitors an astounding 25 million lightning strikes hitting the Earth each and every year. That’s a strike every 1.5 seconds! These lightning strikes result in approximately 246,000 insurance claims with an estimated annual cost to the industry of $1.065 billion dollars per year. In the past 5 years the average lightning claim loss cost has climbed an amazing 63.6 percent.
Why are these claims expenses continuing to climb at such an astounding rate? If we account for a standard inflation, roughly 18 percent of the 63 percent increase can be explained. So why do we still have 45 percent that inflation alone can’t account for? Perhaps one explanation is an increase in the amount of lightning strikes actually occurring. Data from NOAA would indicate that annual numbers stay relatively stable from year to year. For arguments sake, let’s say there has been a 10 percent increase in the number of lightning strikes. We still have a 35 percent claims expense increase that hasn’t been accounted for.
CIS Commercial Insurance Services is a consulting company that’s main focus is the evaluation of HVAC systems. CIS works directly with the insurance companies to diagnose and correctly estimate these types of losses. Their data supports that an average 30% of these expenses can be accounted for simply by inaccurate pricing, inaccurate replacement vs. repair decisions and the lack of knowledge to dispute these claims. In addition they have found roughly 75% of all HVAC systems inspected for lightning damage were not covered losses!
CIS has a long history of proving significant loss cost reduction with claims resulting from lightning. The scope of these lightning losses ranges from our HVAC system expertise, to electronic sound and light boards, to phone systems, to generators and even windmills. In fact, CIS has been providing clients with an average lost cost reduction of nearly 33 percent. This savings accounts for a substantial portion of the unexplained increase in claims cost associated with lightning. If the industry could take advantage of this savings it could be a staggering 190 million per year or $6 every single second.