Why are lithium batteries suddenly a concern for property owners?
Lithium battery-powered devices like e-bikes, scooters, electric vehicles and other mobility products are rapidly moving into residential and commercial spaces. The market for these devices is growing at a speed that has outpaced most property risk frameworks, and the fire hazards they introduce are genuinely different from what property owners have managed before. Getting ahead of this now puts you in a stronger position.
What makes lithium battery fires different from conventional fires?
Three things set them apart. First, they burn significantly hotter than conventional fires (roughly twice as hot). Second, the chemical reaction inside the battery generates its own oxygen, meaning the fire feeds itself rather than drawing from the surrounding air. Third, the battery casing is enclosed, making it difficult to access and suppress the material that’s actually burning. Together, these factors mean standard fire response protocols may not be sufficient.
Does property insurance cover these devices?
Generally, yes. Insurers haven’t changed policy wording to exclude lithium battery-related losses. That said, insurers are tracking rising losses closely and actively encouraging property owners to take proactive steps. The property owners best positioned for the long term are those who treat this as a risk-management opportunity, not just a coverage question.
What steps can property owners take?
A few practical measures make a meaningful difference. Updating your lease language to require only UL- or ULC-listed* devices is a strong starting point. Establishing clear storage protocols, such as keeping devices out of living spaces and in designated areas, significantly reduces exposure. Providing tenants with plain-language guidance on safe charging practices rounds out a solid baseline.
Should property owners ban these devices from their properties?
A blanket ban isn’t practical given how widespread these devices have become. The more effective path is to set clear, well-communicated policies and invest in tenant education. When residents understand the reasoning behind storage and charging guidelines, compliance follows naturally, and stronger tenant relationships are built in the process.
What role do property managers play?
Property managers are well-positioned to address this risk directly. Reinforcing lease terms, communicating directly with tenants, identifying unsafe charging or storage situations during routine inspections and escalating concerns early are the actions that prevent incidents before they occur. Consistent, proactive communication is often what separates a well-managed risk from an insurance event.
Ready to strengthen your approach to lithium battery risk?
HUB’s real estate risk advisors work with property owners and managers across North America to build practical, proactive risk strategies. Connect with a HUB real estate insurance specialist to start the conversation about lithium battery risk and the practical steps that keep your properties and your insurance program on solid ground.