EVALUATE YOUR HOME'S NEED FOR A LIGHTNING PROTECTION SYSTEM

A lightning protection system is designed to control or redirect a lightning strike to a specified path. The system does not prevent a strike, but provides a path on which the electrical current can safely be redirected to the ground. Its objective is to prevent destruction or injury as the lightning travels that route. According to the Lightning Protection Institute (LPI), the system is composed of several key components, including the following.

• Lightning rods -- inconspicuous slender rods installed on the roof at industry-specified intervals.


• Conductors -- aluminum or copper cables that interconnect the lightning rods and the other parts of the system.


• Ground terminations -- metal rods driven into the earth to redirect the lightning current harmlessly to the ground.


• Surge arrestors and suppressors -- devices installed in conjunction with a lightning protection system to safeguard electrical wiring and electronic systems and equipment.

So is a lightning protection system a wise purchase for your home? Most lightning experts recommend that individuals owning homes with several of the following characteristics or features should purchase a lightning protection system.

• Previously has been struck by lightning


• Located in a neighborhood which has experienced lightning damage


• Located in a community or city that has experienced over 25 thunderstorm days a year


• Located in an isolated and open area, or on a hill


• Has aluminum siding


• Has a brick, stone, or metal chimney


• Has a high or large satellite dish


• Has a metal or wood roof


• Has tall trees overhanging the roof


• Lacks surge protection on the electrical panel or on incoming phone lines

Lightning protection systems should meet the code established by Underwriters Laboratories and the LPI. Note that some insurers provide premium credits for homes with these types of certified systems.
For an average size home, the cost for this system ranges from $2,000 to $3,000.

INSURANCE PURCHASING IDEAS FOR HOMEOWNERS

In some parts of the country, consumers have faced substantial increases in their homeowners insurance premiums, particularly in coastal areas subject to hurricanes and windstorms. Other consumers have experienced reduced coverage, moving from all risks coverage for their dwelling to named perils coverage. Still others have received nonrenewal notices due to minor losses, such as water damage claims. The following are some insurance purchasing tips that may help you save premium dollars and reduce losses on your homeowners policy.

1. Try to increase your deductible to the highest one you can afford, even if the premium savings do not appear to justify it. This will decrease your premium and increase the likelihood that your loss history will be excellent, since minor losses will be paid by you and not your insurance company. A loss-free record over time saves premium dollars. For example, if you currently have a $250 deductible on your homeowners policy, consider increasing it to $500 or $1,000.


2. Consider purchasing a monitored burglar alarm. Alarms have proven successful in reducing burglary rates. In addition, most insurers provide premium discounts to consumers with these alarms, some as high as 20 percent.


3. Maintain your home in optimum condition. If a repair is needed, perform it as soon as possible. For example, loose or missing roof shingles should be repaired or replaced immediately. A home in excellent condition is much less likely to experience a loss.


4. If you plan to buy a home, be aware that many insurance companies offer new home discounts. Some insurers offer the highest discounts, such as 20 percent, on brand-new homes and gradually lower discounts for several years as the home ages. Some insurance companies are now offering discounts for homeowners who are age 50 or older.


5. Request a copy of a Comprehensive Loss Underwriting Exchange (CLUE) report on the home you are considering buying. This report provides a list of prior losses for a particular home. It is generated from a database of insurance losses compiled by a high percentage of insurance companies. You can normally contact your current homeowners agent to get this information on a prospective home. Be wary of purchasing a home with prior foundation, water, or mold losses.


6. Install and maintain smoke alarms throughout the house. It is best if the alarms are interconnected, so that if one goes off, they all go off. Test the smoke alarms once a month. These detectors should be approved by Underwriters’ Laboratories (UL) or other recognized testing laboratories. Most insurance companies provide discounts for homes with operating smoke alarms.