Article originally featured on PropertyCasualty360 8/15/2024.
When lightning strikes, the resulting damage can be extensive and costly. Insurance adjusters play a crucial role in assessing these claims, ensuring accurate settlements, and identifying potential subrogation opportunities. One critical aspect that adjusters must be vigilant about is determining whether a whole home surge protector is installed in the affected property.
A whole home surge protector is a device that is installed at a property’s main electrical panel to protect all electrical appliances and systems from power surges caused by lightning or other sources. These protectors act as a shield, preventing excess voltage from damaging the home’s electrical infrastructure and connected devices.
When investigating lightning damage claims, adjusters should prioritize determining the presence of a whole home surge protector. This step is crucial for several reasons. First, knowing whether a surge protector was in place helps in accurately assessing the extent of damage and determining the cause. If a surge protector is installed but failed to prevent damage, it indicates a possible malfunction or defect in the device. Second, if a whole home surge protector is installed and a warranty is in place, the insurance company might have the opportunity to recover costs through subrogation. Subrogation allows the insurer to seek reimbursement from the manufacturer or installer of the surge protector if it is found to be defective or improperly installed. Additionally, many whole home surge protectors come with warranties that cover damage resulting from lightning induced surges. The installation of such protectors is often accompanied by a warranty that covers damage resulting from electrical surges, adding an extra layer of financial security for homeowners. The amount covered under a warranty can vary widely, from a few thousand dollars to tens of thousands, depending on the brand and model.
Identifying the presence of these devices enables homeowners and insurance companies to file claims under these warranties, potentially reducing the overall cost of the claim for the insurer. Finally, by thoroughly investigating and identifying all potential sources of coverage, adjusters can help ensure that homeowners receive the maximum possible compensation for their losses. This diligence can lead to higher customer satisfaction and trust in the insurance company’s services.
To effectively identify the presence of a whole home surge protector, adjusters should inspect the main electrical panel during the initial inspection. These devices are typically installed near or within the panel and should be labeled accordingly. Homeowners may have records or documentation related to the installation of surge protectors, so adjusters should request and review these documents to confirm the presence and warranty details of the device. Speaking directly with homeowners can provide valuable insights, as they may be aware of the surge protector’s installation and can provide information about any warranties or past claims.
Identifying the presence of a whole home surge protector in lightning claims is a critical task for insurance adjusters. It ensures accurate damage assessment, opens up potential subrogation opportunities, and allows for the utilization of warranties, ultimately leading to cost savings for the insurer and enhanced satisfaction for policyholders. By being thorough and proactive, adjusters can significantly improve the claims process and outcomes for all parties involved.