Printer Friendly

Homes with lightning rods earn discount from AIG.

American International Group is offering a 2% discount for homeowners premiums for homeowners who purchase a certified lightning protection system, installed by a Lightning Protection Institute certified installer.

Damage from lightning losses costs $1 billion annually in homeowners claims, according to the Insurance Information Institute. That's roughly 5% of total residential claims, AIG said.

Despite those statistics, underwriters often overlook lightning as a specific peril, the company said. And while there is no industry policy regarding discounts for lightning protection, insurers can refuse to renew coverage after a lightning claim, unless the insured obtains a lightning protection system.

The discount is offered for homeowners who install a system that includes a lightning rod, surge arresters for the electrical entrance and surge suppressors for the resident's electronic devices.

Severe thunderstorms caused an estimated $4.9 billion in insured loss claims during the second quarter of 2003, according to the Property Claim Services. And the Insurance Services Office has cited lightning as the leading cause of homeowners losses from 1999 to 2002--greater than losses due to wind and hail, water damage and freezing, or theft.
COPYRIGHT 2004 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Marketplace
Comment:Homes with lightning rods earn discount from AIG.(Marketplace)
Author:Goch, Lynna
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Aug 1, 2004
Previous Article:Summer promos feature Cadillac, RV giveaways.
Next Article:Parents of college students need to check homeowners policies.

Related Articles
AmGen Deal Would Boost AIG's Life Market Standing.
Divide and conquer: American International Group touts its strength in diversity. (Cover Story).
From the editor.
Reclaim 'orthodoxy,' conference urged.
Tilt the rod!
A sure thing: an industrywide effort to secure more on-track insurance for jockeys may have kept the horses running at this year's Kentucky Derby.
CEOs pick business schools.
Dray, Philip. Stealing God's thunder; Benjamin Franklin's lightning rod and the invention of America.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters