Hot Water Heater Heated Not Hot

It's not confusing if you think about it. But here is the deal. 50 gallon State electric heater and complaint is no hot water. HO says power went out after bad storm, but breakers were not tripped. I pulled off the cover and here is what I smelled/saw...
According to HO there are other issues with electrical in home so at first I was thinking lightning strike right? But would a strike have tripped the breaker that goes to the disconnect then feeds the heater? The bottom element and tstat looked ok, but it goes without saying we'll be replacing the whole unit.
My worry is what about the electrical system here? I know our company will prob eat the replacement here, but what if you were a small company could you afford to replace a water heater that was damaged by lightning or improperly wired electrical?
This is not first heater I've seen damaged like this. Had a Rinnai a couple months ago that had the board and electrical components fried after a lightning strike.

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