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Lithium-ion Batteries

Lithium-ion Batteries

Posted on October 09, 2025 at 07:33 PM

Lithium Battery Fires: What homeowners should know about safety and insurance coverage

The National Fire Protection Association’s (NFPA) annual Fire Prevention Week is shining a spotlight on an important and growing issue: lithium-ion battery safety.

These powerful batteries are everywhere, from phones and e-bikes to home energy systems and electric vehicles (EVs). They’ve made life more convenient, but they also come with rising fire risks and important insurance considerations that homeowners shouldn’t overlook.

Lithium-ion batteries store large amounts of energy in compact spaces. When damaged, overcharged, or improperly used, they can overheat and catch fire. Fire departments across the country are responding to more incidents involving rechargeable batteries in homes, garages, and vehicles.

The Insurance Information Institute (Triple-I) recently warned that fires caused by e-bikes and e-scooters have become a growing safety and liability concern, especially in urban areas. And a survey by UL Standards & Engagement found that:
  • Nearly one-third of New York City e-mobility (e-bikes and e-scooters) owners charge overnight.
  • One in five leave devices charging while they're away.
  • Two-thirds charge indoors, often in areas that could block exits, like hallways or entryways.

Fire and insurance experts are urging homeowners to take lithium battery safety seriously and to review their insurance policies to make sure they’re fully protected in case a battery malfunctions and causes a fire

“Lithium batteries are remarkably efficient but can be dangerous if damaged, overcharged, or improperly stored,” said Kenton Brine, president of NW Insurance Council. “They can ignite quickly and burn intensely, often releasing toxic fumes and reigniting hours or days later. That’s why homeowners need to take safety precautions and review their insurance coverage to make sure they’re protected.”

Safety Tips for Homeowners

  • Use only approved chargers and batteries: Stick with manufacturer-approved products and avoid counterfeit or incompatible alternatives.
  • Use the right charger: Always charge devices with the charger that came with them or a certified replacement.
  • Charge and store safely: Place batteries on hard, nonflammable surfaces, never on beds, couches, or near exits. Avoid extreme temperatures, don’t continue charging the battery after it is fully charged, and never leave batteries charging unattended or overnight.
  • Inspect for damage: Stop using any battery that is swollen, leaking, or overheating.
  • Recycle properly: Do not throw batteries in household trash. Take them to local recycling or hazardous waste facilities. Find a nearby recycling location at https://www.call2recycle.org/
  • Hire qualified installers for large systems: For home battery systems such as solar storage or backup units, use licensed, certified professionals. Ensure installations meet recognized safety standards, including proper ventilation, fire-resistant enclosures, thermal management, and compliance with local building and fire codes
  • As Electric Vehicles (EVs) become more common, homeowners should be aware of EV battery fire risks and related insurance coverage. Always use manufacturer-approved charging equipment, avoid charging in enclosed areas, and have the vehicle inspected if it’s been damaged or exposed to flooding. Most auto insurance policies cover fire damage to EVs under Comprehensive or Collision coverage, and home charging stations are often covered under homeowners insurance. Check with your insurer to confirm your policy limits and safety requirements. For more information, visit the NFPA’s EV Safety webpage.

Insurance Coverage Tips

  • Understand your coverage: Most standard homeowners policies cover fire damage, including fires caused by lithium batteries, but coverage may not be automatic. Some policies may limit or exclude battery-related fires, and homeowners may need to meet safety or disclosure requirements to maintain coverage.
  • Ask about specialized policies: Some insurers offer coverage specifically for e-bikes, e-scooters, or other battery-powered equipment. Check with your agent about protection for devices used outside the home, home energy storage systems, replacement cost versus actual cash value coverage, and policy endorsements for high-value rechargeable equipment.
  • Disclose your systems: Even a small battery fire can cause thousands of dollars in smoke and repair damage. Insurers may require full disclosure of any lithium battery systems, including size, brand, installation details, safety features, and fire suppression systems.
  • Review your policy: Call your insurance company or agent to confirm coverage and understand the claims process for fires caused by lithium battery devices. Taking this step can help prevent unexpected expenses if a fire occurs.

For more lithium-ion battery safety information, visit the Oregon State Fire Marshal’s webpage or the NFPA’s website at Lithium-Ion Battery Safety

For more information about property & casualty insurance, contact NW Insurance Council at (800) 664-4942.



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