30 Jan Strata Insurance Insights: Faulty Lithium-Ion Batteries

The growing popularity of e-bikes and e-scooters has increased concerns among strata property owners and tenants about the heightened fire risk linked to faulty Lithium-ion batteries.  This surge in popularity calls for a closer examination of risk management related to these items.

In January 2024, investigators from Fire and Rescue NSW (FRNSW) confirmed that a fire in North Bondi was caused by a faulty Lithium-ion battery. Firefighters attended the scene and quickly extinguished the fire, with damage contained to the unit in which it started. The unit was fitted with working smoke alarms, while the building’s automatic fire door activated, limiting the spread of fire and smoke. The Investigators established that an e-bike battery was left on-charge in a bedroom and ignited.

The Insurance Council of Australia is encouraging e-scooter and e-bike owners to take proactive measures to ensure they are adequately protected, including:

• Review insurance coverage: Ensure insurance policy provides sufficient coverage to rebuild or replace the home and contents in the event of a fire. Consider the rising cost of building materials and adjust coverage accordingly.
• Store and recharge safely: Improper storage or e-scooters and e-bikes pose a fire hazard and may lead to an insurance claim being denied. Store these devices in a well-ventilated area away from flammable materials and avoid charging them indoors.
• Check building regulations: Some apartment buildings or body corporates may impose specific insurance requirements for e-scooter or e-bike owners to have a higher level of insurance coverage. It’s important to have this conversation with your strata committee or landlord before the unexpected happens.

As a result of the fire, the occupants have lost all their personal possessions, highlighting the importance of both owners and tenants having their own contents insurance in place. It’s well worth reiterating that personal belongings of the owners or tenants are not covered under strata insurance policies.

Fire and Rescue NSW has created the following documents, which could prove valuable for certain strata plans.

• General battery and charging safety factsheet (PDF)
• E-bike and e-scooter charging safety poster (PDF)

For more information on Battery and Charging Safety visit the FRNSW website.

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