Even though electric vehicles have received most of the attention, they are only part of the hazard of lithium-ion batteries for condos. E-bikes, e-scooters, hoverboards, battery-powered tools, and other lithium-ion devices that residents bring into units, garages, storage rooms, and common areas are also an issue.
Does your association have a clear, documented plan for managing the broader lithium-ion battery exposure?
The concern is lithium-ion battery failure, particularly a condition known as thermal runaway. When a lithium-ion battery fails because of damage, overcharging, water exposure, defective components, incompatible chargers, or excessive heat, it can create intense heat, fire, toxic fumes, flammable vapor, and the possibility of reignition.
In an enclosed garage, bike room, hallway, storage area, or high-rise building, that risk can escalate quickly. This matters for several reasons.
- These fires are different from ordinary fires. Traditional extinguishers may not be enough to control the heat or prevent reignition. Lithium-ion battery fires can also release hazardous gases and fumes, creating risks for residents, staff, firefighters, and neighboring units.
- The risk is not limited to EVs. E-bikes and e-scooters may create an even more immediate concern because they are often charged near exits or inside units, hallways, bike rooms, and storage cages. Damaged, uncertified, counterfeit, rebuilt, or aftermarket batteries increase the risk. Devices should be charged only with manufacturer-approved chargers and kept away from exits, bedding, upholstered furniture, trash rooms, stairwells, and other combustible areas.
- Insurers are paying attention. Carriers serving condominium and habitational risks in D.C., Maryland, and Virginia are increasingly asking questions about EV charging stations, lithium-ion battery policies, resident notices, charger inventories, fire protection, electrical inspections, and emergency procedures. Associations that cannot show a written policy or clear loss-control measures may face additional underwriting scrutiny, coverage limitations, or pricing pressure.
Boards should consider taking several practical steps now:
- Review and adopt a written EV and lithium-ion battery safety policy. This should address EV charger approvals, installation standards, resident-owned charging equipment, e-bikes, e-scooters, storage, disposal, inspections, and enforcement.
- Require prior written approval for EV charging stations. Installation should include licensed electrical contractors, load calculations, required permits, UL/ETL-listed equipment, dedicated circuits, clear emergency disconnects, signage, and appropriate metering.
- Prohibit unsafe charging practices. This includes use of extension cords, splitters, non-listed chargers, common-area convenience outlets, damaged devices, water-damaged batteries, and charging in hallways, stairwells, lobbies, trash rooms, mechanical rooms, storage cages, or other unsafe locations.
- Create an inventory. Associations should know where EV chargers are located, who owns them, where disconnects are located, and whether residents are storing or charging e-bikes and other lithium-ion devices on the property.
- Update emergency procedures. Management should know the warning signs of a failing battery, including smoke, hissing or popping sounds, unusual odors, swelling, leaking, or excessive heat. Residents and staff should be instructed to evacuate, close the door if safe to do so, call 911, and avoid moving a compromised battery or vehicle.
- Review insurance requirements. Boards may want to require HO-6 coverage, personal liability limits, certificates of insurance for charger installations, additional insured status for the association where appropriate, and clear responsibility for deductibles or uninsured losses tied to resident-owned equipment.
- Investigate newer lithium-specific fire suppression products entering the market. Some are designed to cool lithium-ion battery fires, reduce reignition, and help contain heat and toxic fumes until the fire department arrives. These tools are promising and have performed well in certain demonstrations and testing; however, they should be evaluated carefully with your fire protection professional, local fire marshal, legal counsel, and insurance advisor because regulation and adoption are still evolving.
The most important step is not to wait until a resident request—or a loss—forces the issue. A thoughtful policy can help protect residents, preserve property, support insurability, and give the board a defensible framework for making decisions.
Preferred Insurance can help your association review this exposure, evaluate insurance implications, and identify practical risk-management steps before your next renewal.
Please contact us if you would like to discuss EV charging stations, e-bike and e-scooter policies, lithium-ion battery safety, or related coverage concerns for your community.
