Question: Given the increased use of lithium-ion batteries in cars, bicycles, skateboards, scooters, etc., should owners corporations of B Class complexes be aware of any recent legal/insurance developments?
Answer: There are currently no notable insurance restrictions or compliance issues regarding EV storage or charging station installation.
In the wake of a global shift towards sustainable transportation, Australia is witnessing a significant increase in electric vehicle (EV) usage. With governmental policies encouraging this shift, it’s projected that by 2040, all new vehicle sales will be electric. But what does this mean for strata insurance?
At the time of writing this response, I’ve observed that most insurers have yet to implement specific exclusions or conditions related to electric vehicles and charging stations. This means there are currently no notable insurance restrictions or compliance issues regarding EV storage or charging station installation.
While the insurance industry hasn’t yet been significantly impacted, potential risks associated with EVs are on the rise:
- Fire Hazards: Incidents of fires from EV charging and storage.
- Structural Integrity: Some EVs may be heavier than traditional vehicles, potentially affecting building structures.
- Electrical Safety: The high voltages required for EV charging pose electrocution risks.
- Malicious Actions: Risks of theft or damage to charging stations.
These factors represent ’emerging risks’ that could lead to future policy exclusions, premium adjustments, or increased excesses if major losses occur. Notwithstanding, strata buildings should be aware that these conditions may evolve, leading to possible policy exclusions, adjustments in premiums, or increased excesses, especially if strata insurers experience significant losses.
To safeguard against risks, we recommend strata buildings consider the following:
- Adhere to all regulations and manufacturer guidelines for charging stations.
- Strategically place charging stations to mitigate fire risks and ensure surrounding areas are clear of combustibles.
- Implement and maintain appropriate fire protection measures.
- Store cables and equipment safely.
- Regularly maintain charging stations as per manufacturer specifications.
- Clearly define responsibilities regarding vehicles and charging stations to avoid legal disputes.
- Employ qualified contractors to ensure electrical systems can support the added load.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.