What Kind of Insurance Covers Lithium-Ion Battery Fires?

A growing number of devices that are crucial to our daily lives are powered by lithium-ion batteries. In fact, the technology you’re using to read this is likely powered by lithium-ion batteries. But what happens if your device causes a fire in your vehicle, inside your home or on your property?

It’s important to learn how to use and store these batteries properly, as well as the risks of owning them. Proper use can decrease safety hazards, reduce the risk of property damage and even increase the life of your devices.

Today, we’re going to teach you a thing or two about lithium-ion batteries and how to reduce the risk of lithium-ion battery related fires. We’ll also cover the types of insurance that cover lithium-ion battery fire damage.

What are lithium-ion batteries?
Lithium-ion batteries are different from lithium batteries. While they are made of different materials, there is one key feature that makes it easy to distinguish between the two. According to Powertron Battery Company, lithium-ion batteries are rechargeable which allows for multiple uses and an extended lifespan but lithium batteries primarily are non-rechargeable and are designed for single-use.

Here are some additional differences between the battery types:
Lithium-ion batteries

• Have a high energy density which is great for powering devices like smartphones and laptops.

• Have a lower self-discharge rate, meaning they store power for long periods on a single charge.
• Have a higher upfront cost but their self-discharge rate and rechargeability make them more cost-effective and sustainable over time.

Lithium batteries

• Have a lower energy density which is more suitable for children’s toys and electric tools.
  
• Have a higher self-discharge rate, meaning they lose energy rapidly.  
• Have a lower upfront cost but can get expensive over time because they require regular replacement.

Common items that contain lithium-ion batteries
Now that you know a little bit more about lithium-ion batteries, you probably won’t be surprised that the following consumer products usually have them:

• Laptops, tablets and eReaders
• Smartphones and smartwatches
• Bluetooth headphones
• Hoverboards, e-scooters and e-bikes
• Power tools like drills and string trimmers
• Accessories like a portable computer mouse
• Tools like a cordless vacuum cleaner

Common lithium-ion battery risks
Improper use and storage of lithium-ion batteries can lead to injury, property damage and environmental impacts. Some of the most common risks include:

• Fire hazards from damaged, overcharged or overheated batteries.
• Thermal runaway, which is a type of overheating that occurs rapidly and may cause the battery to explode.
• Swelling or leaking from prolonged periods of charging or long exposure to high heat.
• Short circuiting from dropping the battery, exposing it to water or other damage.

6 tips to reduce your risk of a lithium-ion battery fire
There are several safety precautions you can take to reduce the risk of a lithium-ion battery fire or other damage, including:

1. Check the device for damage before using it. Inspect the tech battery for physical damage, swelling or excessive heat. Do not use the product if any of these are present, especially if it’s coming from the battery.
2. Use the charger that came with the device. Did you know incompatible chargers can lead to overcharging and overheating? Avoid the damage to your device by using the right charger. There is one exception to this rule of thumb: new Apple products no longer come with chargers. Research tech accessory brands for recommended chargers for your Apple devices.
3. Check your device to see if it has a safe-charging feature. This would slowly charge the device over an extended period of time, such as overnight. Be aware that this functionality may not be present on most devices.
4. Unless your device has a safe-charging feature, don’t leave devices charging unattended or overnight. The easiest way to overcharge your device is to plug it in and walk away or go to bed for the night. Pro tip: Pick a task to do while you charge your smart devices, like cooking a meal or vacuuming the house. Your devices will have an optimal battery charge by the end of your activity and you won’t risk overcharging or overheating the product.
5. Keep airflow in mind while using and charging your technology. Place your phones, tablets and laptops on hard surfaces like a countertop for charging. Beds, couches and other soft surfaces can block airflow and contribute to overheating.
6. Store your devices, batteries and chargers in a cool, dry place. While many of your devices are probably already indoors, think of e-bikes, garage tools, hoverboards and other toys and tools that can overheat in your garage during the summer.

Types of insurance that may cover lithium-ion battery fires
A battery fire can break out anywhere. Your car, home, garage, driveway or any other place where you use or store lithium-ion batteries is at risk. Here are some types of insurance that may cover the damage if a fire breaks out, plus some example scenarios to explain coverage parameters.

• Auto insurance—your auto policy may cover a battery fire if, for example, it was ignited from a collision that damaged a lithium-ion battery device. Your collision coverage would come into play for repairing or replacing your vehicle. Review your auto insurance policy to confirm you have adequate coverage. For questions or to add endorsements to your auto policy, talk to your agent today.
• Home insurance—your home policy would generally have coverage for the peril of fire. You should, however, review your policy for verbiage regarding battery-related property damage as additional endorsements may be warranted to cover such losses. Talk to your agent if you have questions or want to add or enhance coverage to your home insurance policy.

Stay informed! The best way to reduce the risk of insurance headaches is to understand your policy. Meet with your Grange Independent Agent today to learn the ins and outs of your coverage.

References  
Check Fire 
Powertron Battery Company 
Recycle Nation 

Coverages described herein may not be available in all states. Please contact us, a local independent Grange agent, for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.