Navigating fire safety from an insurance and design perspective
With the rise of electric vehicles, strata owners have to adapt by incorporating EV charging stations in their buildings. This shift requires a profound reassessment of fire safety, particularly concerning EV batteries, which differ significantly from Internal Combustion Engine (ICE) vehicles. This article explores the evolving fire safety landscape in strata buildings equipped with EV charging stations, drawing insights from property insurance and the critical role of design professionals, shedding light on insurers' criteria in these specialised spaces.
Property insurance for buildings with EV chargers
As of Q2 2025, electric vehicles (EVs) accounted for 13.1% of all new car sales in Australia, with 41,146 units sold. This includes 29,244 battery electric vehicles (BEVs) and 11,902 plug-in hybrid electric vehicles (PHEVs). Compared to Q2 2024, when EVs made up 9.59% of new car sales with 30,028 units sold, this represents a 37% increase in EV sales year-on-year.
Implications for strata buildings based on this updated data include:
- A continued rapid increase in the volume of large batteries stored in residents' car parks due to the growing number of EVs.
- An increasing demand for the installation of EV charging stations within strata car parks to accommodate resident needs.
These changes have significant potential implications for the risk profile of strata buildings, including considerations around electrical infrastructure capacity, fire safety related to large battery storage, and the need for updated policies and insurance coverage to manage these emerging risks.
The unique nature of fire risks associated with EV batteries requires specialised handling in fire incidents. Insurers are aware of this, prompting new risk assessments and a focus on mitigating these new risks through strict measures. Properties lacking these measures may face challenges in obtaining adequate insurance.
- Proper storage of charging cables and associated equipment to prevent liabilities like trips or falls.
- Clear areas around EV charging stations, free from combustible storage.
- Regular maintenance of charging stations and associated wiring.
- Installation of appropriate fire protection measures in accessible areas near EV charging stations.
Design professionals' role in ensuring fire safety
Architects, engineers, and building surveyors play a pivotal role in implementing EV charging stations while prioritising fire safety. Navigating this role also presents challenges, including interpreting regulations predating widespread EV use, limited scientific data, and rapidly evolving EV technology.
Professional indemnity insurers are cautious about emerging risks within an industry and seek specific measures from design professionals to mitigate potential liabilities:
Demonstrating education and experience in the EV charging space through past projects and continuous professional development.
- Establishing clear building code parameters, potentially aided by regulators updating guidelines.
- Implementing robust quality assurance protocols like internal or external peer reviews.
These measures position design professionals to access appropriate professional indemnity insurance. In our experience at Honan, we have not seen adverse action taken by insurers for professionals involved in buildings containing EV charging stations. With the above measures in place, we anticipate this trend to continue. Vigilance from the industry is recommended, recognising insurers' potential for changes based on evolving circumstances.
What's on the horizon
The evolution of EV-related risks is expected to progress rapidly, shaping discussions around risk and electric vehicles. Key factors influencing the discussion include:
Widespread EV prevalence and its implications, especially if all vehicles in a car park are battery-powered.
- Varied fire safety implications based on the technology adopted by EVs.
- Insights from robust data sets on the fire safety implications of housing and charging EVs.
- The evolution of regulatory frameworks to accommodate EV considerations.
- Legal apportionment of liability among involved parties in case of losses.
The intersection of fire safety, insurance considerations, and design professionals' roles will continue reshaping how strata buildings accommodate the rise of EVs. It’s critically important to inform your broker and or insurer if you have electric vehicle charging stations within your building complex.
This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Honan shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.
