Action Insurance Brokers insures a wide range of residential, industrial and commercial strata complexes across Australia. One emerging risk is now appearing consistently across all of them: e‑bikes and e‑scooters powered by lithium‑ion batteries.

What was once an awkward strata nuisance — an e‑bike left near a fire door or a scooter charging in a stairwell — is now a serious life‑safety and insurance exposure.

Why this matters now

Lithium‑ion battery fires are increasing rapidly. Fire authorities in Australia recorded hundreds of lithium‑ion battery incidents in 2025, and loss data shows many fires occur while devices are charging, often overnight.

The drivers are clear:

• Rapid growth in e‑bikes and e‑scooters
• Higher‑density living
• Charging behaviours never designed for apartment environments

Why these fires are different

Lithium‑ion fires escalate extremely quickly. A damaged battery can reach extreme temperatures in seconds, release toxic gases and carry a strong risk of re‑ignition. Even small fires often cause extensive smoke and contamination damage, spreading into lifts, corridors and multiple units.

From an insurance perspective, a minor ignition event can quickly turn into a six‑figure building claim.

The real concern: safe exit

What has most concerned insurers is where these fires start.

When charging occurs in common property — hallways, stairwells, or basement bike rooms — a unit‑level incident becomes a whole‑building evacuation risk. Recent fires in Sydney, Auckland and Wellington have forced mass evacuations, sometimes in the early hours of the morning.

At that point, the issue is no longer just property damage — it’s safe egress and human life.

Why traditional controls don’t work

This is a difficult risk for strata managers to control. Lot owners can’t easily monitor tenant behaviour, and managers can’t police every power point. Non‑compliant charging is often discovered only after a fire occurs.

Without behavioural change, insurers are seeing claims frequency and severity increase, placing long‑term pressure on strata insurance arrangements.

Where the solution really sits

Insurers are clear: this is not a policy‑wording issue. The solution sits in governance and building rules.

We are increasingly seeing strata schemes:

• Prohibit charging in hallways, stairwells and near fire exits
• Require designated, ventilated charging areas
• Restrict overnight charging
• Limit how many devices can be charged in one location

While outright bans may be unenforceable in NSW, reasonable regulation is not.

The conversation worth having now

The most important conversation for strata managers and committees right now is not about excesses or sums insured. It’s about:

• Where charging is allowed — and where it isn’t
• How residents and tenants are educated
• How risk is aggregated within the building
• How compliance is realistically enforced

Regulation will eventually catch up. But the exposure exists today.

From our perspective as insurance brokers, strata schemes that treat lithium‑ion charging as a governance and life‑safety issue now will be far better placed — operationally, legally and from an insurance standpoint — than those waiting for the next fire to force the discussion.