27 November, 2024
Average cost of battery fire claims hits £50,000
Data released today by leading insurer Allianz reveals the high cost of fire-related claims involving lithium batteries.
The average cost of these claims is £50,000, with fires caused by leaking and damaged batteries and overcharged e-vehicles combusting at home.
Statistics from the London Fire Brigade reveal the Greater London area alone has seen 673 fires where a lithium battery or vehicle was involved since January 2023.
The largest claim received by Allianz for a fire started by a rechargeable lithium battery is for more than £420,000 after a battery-powered vacuum cleaner caught light causing a major fire in a property in London.
Allianz fire-safety partner and Surrey firefighter, Angela Everington, says homeowners should be wary of the number and age of these batteries they have lying around which could start fires.
She said: “Old batteries aren’t just unnecessary to keep lying around but are more prone to damage and deterioration. The older the battery, the higher the chance of leaking, sparking or igniting a fire.”
A survey* of 2,000 UK adults commissioned by Allianz found that all respondents said their household contained at least one device with a lithium battery, while 74% admitted to holding onto a dead device longer than needed.
To raise awareness of the dangers, Allianz has compiled a list of some of the top lithium-ion powered items people admit to holding on to for too long:
1. Smartphones - 77%
2. Laptops - 57%
3. Digital cameras - 20%
4. Power bank - 13%
5. Electric toothbrush - 11%
A charged issue
With home fires caused by these batteries on the rise, Allianz and Angela are working to highlight some of the bad habits people need to be aware of.
Angela said: “Overcharging, or using incorrect wattage when charging, can damage the battery, causing it to overheat and even explode. Allianz’s research chimes with the trends we’ve witnessed when attending house fires, which are more frequently caused by lithium products.”
Caroline Johnson, Allianz personal lines claims director, said: “Fires caused by rechargeable lithium batteries can have devastating consequences, and it is important that people use good quality batteries from reputable retailers.
“Items such as mobile phones, tablets, cameras and other electronic devices are essential parts of modern living but we can all take precautionary steps to make sure we are charging, disposing and handling our devices correctly. People should look out for problems with their batteries such as wear and tear, overheating and bulging, and dispose of damaged batteries properly.
“Old tech should be recycled properly and it is also important that every house has smoke alarms fitted.”
The figures show that although most people own lithium battery-powered items, one third (34%) said they don’t know or are unsure of the risks they pose.
More than 78% of people regularly charge their battery products overnight while almost half (45%) use uncertified chargers.
While 28% said they aren’t concerned about charging items overnight and don’t consider it to be a risk, 53% say house fires are their biggest fear when it comes to their homes and possessions. Nearly three-quarters (73%) believe it would be the most devastating thing to happen to their homes over theft and storm damage.
Powerful advice
Angela is encouraging people to use, treat, and dispose of these products properly to help keep their homes and possessions safe and has shared some of her top tips to help avoid fires at home.
1. Avoid charging devices overnight or unattended.
2. Store lithium batteries in a coolm dry place away from heat sources.
3. Always use certified chargers for your devices.
4. Look out for signs of battery damage - such as swelling or leaking.
5. Dispose of damaged batteries safely - do a quick Google search to find your nearest refuse center.
*2,000 adults were surveyed between 3-5 November 2024.
About Allianz Holdings plc
Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain including Allianz Insurance.
About Allianz
The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 737 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
**As of December 31, 2023.
Mandatory corporate information: Corporate disclosures
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements.
Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
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