The growth of electric vehicle (EV) ownership is reshaping the safety and insurance considerations for residential strata buildings, particularly as more owners push for on-site charging stations.
In 2024 alone, 114,000 battery electric and plug-in hybrid vehicles were sold in Australia, a 16.3% increase from the previous year. This rise has led to more high-voltage batteries stored in shared car parks, prompting insurers, designers, and strata managers to reassess how these new technologies are being introduced into existing structures.
According to insights from Marsh, this transition carries specific fire risks not typically associated with internal combustion engine vehicles. This has led insurers to tighten expectations around how buildings manage EV infrastructure, with emphasis on cable storage, maintenance schedules, and fire protection systems.
Design professionals are also under increased scrutiny. Architects and engineers must work within building codes that in many cases predate the widespread adoption of EVs. At the same time, rapid changes in vehicle and battery technology are creating uncertainty around long-term liability.
Marsh pointed out that professional indemnity insurers are “cautious about emerging risks within an industry and seek specific measures from design professionals to mitigate potential liabilities.” These include a track record of relevant projects, evidence of ongoing training, and the use of internal or external peer reviews.
So far, Australian insurers have not introduced restrictions specific to professionals working on EV-enabled buildings, but Marsh claimed that the situation remains fluid.
Looking ahead, several uncertainties could shape how fire safety and insurance policies evolve in this space. Among them are the impact of widespread EV adoption in enclosed car parks, the variability of fire risks based on battery type, and the eventual development of clearer regulatory frameworks.
“The intersection of fire safety, insurance considerations, and design professionals' roles will continue reshaping how strata buildings accommodate the rise of EVs. It’s important to inform your broker and or insurer if you have electric vehicle charging stations within your building complex,” Marsh noted.
