Several insurance companies in Australia and Asia offer coverage for EV battery fires in apartment recharging stations.
Representative image. Credit: Pixabay. Photograph:(Others)
Specific fire risks linked to EV batteries and batteries charging stations in apartments and houses requires experienced and specialised handling during incidents. Insurers recognize this, leading to new risk assessments and a heightened emphasis on implementing strict mitigation measures. Properties without these safeguards may struggle to secure sufficient insurance coverage.
Causes of Lithium-Ion Battery Fires
Thermal runaway is a significant cause of Lithium-ion batteries (LIBs) fires. It occurs when heat generated by the battery exceeds its cooling capacity, leading to a rapid temperature rise. This happens when the battery’s internal temperature exceeds 90-120 °C, triggering exothermic reactions in the electrolyte that decompose the solid electrolyte interface (SEI) and other components, releasing more heat. As temperature escalates beyond 200 °C, the breakdown of the hydrocarbon electrolyte releases flammable gases, potentially leading to explosions. Read in more detail in AZO Materials.
Electric Vehicle (EV) statistics highlight rapid growth in Australia and Asia. In 2023, Electric Vehicles (EVs) in Australia represented 8.4% of all new car sales, marking a significant rise from 3.81% in 2022.
The total number of EVs on Australian roads has now surpassed 180,000. Charging infrastructure has also seen impressive growth, with approximately 350 public charging locations—a 57% increase since 2021—making it easier for drivers to transition to electric.
More than 40 new EVs expected in showrooms and local roads by the end of 2025. At last count, there are 27 different brands selling at least one EV, sharing 61 models.
Asia continues to dominate the global EV market, with China leading the charge. In 2023, nearly 60% of new electric car registrations occurred in China, which registered 8.1 million new electric vehicles—a remarkable 35% increase from the previous year. Globally, electric cars accounted for 18% of all vehicle sales in 2023, with the Asia-Pacific region experiencing faster growth rates compared to other areas.
EV Charging Insurance: Australia
Gallagher– specializes in property and liability insurance, including coverage for EV charging stations.
The growth of new energy vehicles, especially in China and Europe, offers valuable insights for Australia’s adoption of electric vehicles (EVs). It’s clear that EVs are likely to replace traditional fuel models due to their environmental benefits and long-term cost savings. As a result, insurance coverage is being developed and refined now to address the unique risks and needs of EV owners ahead of the expected demand.
Austbrokers Terrace: Provides comprehensive insurance solutions for property owners and landlords, including coverage for EV-related risks.
Honan: Offers insurance and risk management services for strata buildings with EV charging stations.
EV Charging Insurance: Asia
AXA: Offers property insurance that covers EV battery fires in apartment recharging stations.
New! Cover for the home charger and charging cable
New! Cover for third party liability due to the use of home charger and public EV charging station
Allianz: Provides coverage for EV-related risks, including battery fires in residential buildings.
Tokio Marine: Specializes in property and casualty insurance, including coverage for EV charging infrastructure.
