Lightning and Power Surge Claims

Lightning damage ranges from a dramatic strike that starts a fire to a surge that quietly destroys appliances, HVAC controls and electronics throughout a building. Lightning is a named covered peril in most homeowners and commercial property policies, but power surge claims are where the details matter most.

The key question in many of these claims is what caused the surge. Policies often treat a surge caused by lightning very differently from a surge caused by the utility grid or by wear and tear inside the electrical system.

• Direct strikes to the roof, chimney, antenna or a tree near the building
• Side flashes from nearby objects
• Lightning entering through power, cable, phone or data lines
• Surges traveling through the ground into plumbing, wells and irrigation systems
• Utility-side surges after a storm, which may be treated differently than lightning

Visible damage includes scorch marks, holes in roofs, split trees, damaged chimneys and fires.

Hidden damage is common:

• Appliances, HVAC systems, pool equipment and electronics that stop working or behave erratically after the storm
• Damaged circuit boards in garage door openers, alarm systems and smart devices
• Tripped or damaged breakers and scorched wiring inside walls
• Well pumps and irrigation controllers that fail
• Cracked masonry, chimney or foundation damage near the strike point

A licensed electrician's report on what failed and why can be very important for these claims.

Depending on your policy, lightning coverage typically includes:

• Dwelling: structural damage and fire caused by lightning
• Building systems: wiring, panels and fixed equipment damaged by a lightning-caused surge
• Personal property: electronics and appliances damaged by lightning or a lightning-caused surge
• Loss of Use / Additional Living Expense (ALE): reasonable extra costs if your home is unlivable during repairs
• Fire damage: see our fire damage guide

• Artificially generated electrical current: many policies exclude or limit damage to electrical devices caused by surges that are not from lightning, such as utility fluctuations.
• Wear and tear: failures from old equipment or deterioration are usually excluded.
• Equipment breakdown: some surge damage is covered only under an equipment breakdown endorsement.
• Sub-limits: electronics, computers and business equipment may have limits.
• Actual cash value: older electronics and appliances may be paid at depreciated value.

Electrical damage sometimes shows up days or weeks after a storm as devices fail. Report the damage as soon as you discover it, and add newly discovered damage to the claim promptly. Check your policy for proof of loss requirements and any deadline to file a lawsuit, and ask your insurer to confirm deadlines in writing.

• "There is no evidence of a lightning strike at this address."
• "The surge came from the utility, not lightning."
• "The equipment failed from age or wear and tear."
• Paying for a few devices while denying others that failed at the same time
• Offering depreciated values for electronics and appliances

As licensed public adjusters, we work for you. On lightning and surge claims we typically review the policy's electrical and surge language, coordinate the technical evidence of cause, build a complete list of damaged systems and equipment, and negotiate with the insurer.

If your claim has been denied or underpaid, see our page on denied and underpaid claims. Learn more about our public adjusting services.

Texas, Louisiana and Mississippi: The Gulf Coast sees frequent thunderstorms, and each state sets rules for how quickly insurers must acknowledge, investigate and pay claims. Your utility may also have its own process for surge claims caused by grid events, separate from your insurance claim.

These notes are general. Your policy and current state law control.