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What To Look For in Lightning and Surge Claims

Verify if lightning, surge, or wear and tear were the cause of loss for HVAC system claims more easily by knowing what evidence may be present. Read on to learn more about each peril and related HVAC damage characteristics.

Lightning

Losses caused by direct lightning are not as frequent as many policyholders or adjusters may believe. They often include evidence of burning, charring, and melting or ghosting and arcing. Failures may occur to multiple components and not simply electronic ones.

Only

1%

of HVAC and Refrigeration

equipment had a failure due to direct lightning in 2021.

19%

Reported Cause of Loss

1%

Actual Cause

of Loss

Characteristics that could occur with lightning impacts:

Visible Impacts
Damage to Indoor and Outdoor Equipment
Instant Failures Possible
Damage Because of Electrostatic Discharge

Multiple Components Damaged
Requires Equipment Repairs
Needs Equipment to Test

These don’t guarantee lightning is the cause of loss, and an equipment expert should complete a comprehensive assessment for verification.

Claims with reported lightning losses most often occur in

May, June, and July.

TEST YOUR INSTINCTS

Can direct lightning impact indoor equipment?

Yes

No

Incorrect!

Though it is rare,

it has happened.

Direct lightning has gone through a roof to strike indoor components, such as a furnace, and leave visual evidence.

Correct!

Though it is rare,

it has happened.

Direct lightning has gone through a roof to strike indoor components, such as a furnace, and leave visual evidence.

High Voltage Surge

High voltage surges can cause a similar level of failures to HVAC equipment as lightning. They come from sudden changes in voltage that last a few nanoseconds to several minutes.

A main difference between surge and lightning is that surge failures are confined to an electrical system. Surges use wiring as their path.

Characteristics that could occur with high voltage surge impacts:

Failures to Outdoor Equipment
Failures to Indoor Equipment
Instant Impacts Possible
Damage Because of Electrostatic Discharge

Multiple Components Affected
Requires Equipment Repairs
Needs Equipment to Test

These don’t guarantee surge is the cause of loss, and an equipment expert should complete a comprehensive assessment for verification.

TEST YOUR INSTINCTS

What percent of HVAC and Refrigeration equipment do you think had failures due to high voltage surge?

7%

20%

46%

63%

Incorrect!

It's 20%.

1 in 5 pieces of equipment that HVACi assessed had high voltage surge as the cause of loss.

Correct!

It's 20%.

1 in 5 pieces of equipment that HVACi assessed had high voltage surge as the cause of loss.

Wear and Tear

Policyholders almost never report wear and tear as a cause of loss to their HVAC equipment because it’s typically not a covered peril. Yet, it occurs more than these other two perils combined and can impact more HVAC components.

30% of HVAC and Refrigeration equipment

had failures due to wear and tear.

Characteristics that could occur with failures from wear and tear:

Visible Impacts
Failures to Outdoor Equipment
Failures to Indoor Equipment
Damage Caused Over Time
Multiple Components Affected

Requires Equipment Repairs
Refrigerant Could Be Affected
Connections Could Be Impacted
Needs Equipment to Test

These don’t guarantee wear and tear is the cause of loss, and an equipment expert should complete a comprehensive assessment for verification.

TEST YOUR INSTINCTS

Which component cannot be impacted by lightning or high voltage surge?

Top Panel

Refrigerant

Control

Board

Incorrect!

The only component that can't be impacted by lightning or surge

is refrigerant.

Acid may be misdiagnosed as caused by lightning or high voltage surge, but refrigerant can only become acidic over extended time.

This is evidence of wear and tear.

Correct!

The only component that can't be impacted by lightning or surge

is refrigerant.

Acid may be misdiagnosed as caused by lightning or high voltage surge, but refrigerant can only become acidic over extended time.

This is evidence of wear and tear.

Downloadable Comparison Chart

Insurance professionals can receive a free copy of the PDF chart that compares characteristics of lightning, high voltage surge, and wear and tear. Fill out the form to verify your qualifications and have it emailed to you.

ABOUT OUR COMPANY

HVACi, an Alpine Intel company, provides the leading all-in-one HVAC and refrigeration system equipment assessment solution and desktop pricing review option for insurance carriers.

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(888) 407-5224

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