'Very worrying': Hidden insurance clause may not cover EV home chargers

03/30/2025 03:00 PM

One of the biggest barriers to the electric vehicle transition is there being enough places to charge, which is why EV home charger options are becoming more popular.

But what if you've bought an EV, had a charger installed at your home according to Australian Standards and fitted by a licensed electrician, and your insurance still won't cover you if something goes wrong?

Drive understands that not all insurers are willing to provide cover in the event of a fire if the charger itself is not supplied by the original equipment manufacturer (OEM), or in other words, the car maker.

Is it worth installing an EV home charger?

Posting on a Facebook group for EV owners, one person said they had been told by the Royal Automobile Club of Queensland (RACQ) that they were only covered for using the three-pin 'trickle' charger at home and not the unit they'd just had installed.

"RACQ has just advised me that they will not cover our house and contents from renewal unless we only use the BYD-supplied 'granny' charger," they said.

"They won't cover our professionally installed 32amp 7kW fast charger unless we get BYD to certify that the charger is safe to use for our Seal, which, of course, BYD won't do without massive personal costs involved.

"I spoke with two different people. First customer service and then a higher-up who confirmed it with the underwriters. The reason I called to ask about it is it's in the PDS (Product Disclosure Statement) from this year onwards.

"[They] won't cover from our renewal date for damage to house or contents due to loss from using a non-OEM charger."

While some questioned whether this was accurate, others said they'd had the same thing happen to them.

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"I was told unless it's the BYD-supplied charger you're not covered. I'm in a similar position, the electrician installed a 32amp point and purchased a 7kW charger. Nothing but BYD-supplied will be covered unless I go to the expense of getting my equipment certified by BYD," they said.

"It is a general exclusion, meaning nothing is covered whatsoever if caused by the non-standard charger," added another.

When asked by Drive whether its PDS covers the use of a non-OEM charger, the RACQ told us: "RACQ's home insurance offers cover for loss or damage for an insured event caused by an electric vehicle where the charging cable and/or the charging unit and installation is compliant with Australian Standards.

"Although the circumstances of every claim will need to be considered, there is the potential for a policy not to respond if the equipment does not meet Australian Standards or the loss or damage is caused by the incorrect charging unit installation, use, storage or maintenance of the equipment or vehicle," it said in a statement.

"To reduce the risk of damage, users should avoid using non-genuine or non-standard charging devices and always ensure the devices meet Australian Standards. 

"You should also avoid leaving batteries or devices unattended while being charged and ensure that once the battery is fully charged, it is disconnected from the charger. 

"You should also avoid charging devices in living spaces or near flammable materials. Importantly, ensure your charging location doesn't impede on your evacuation route should a fire occur."

However, this appears to go against what its PDS says – as highlighted by the BYD Seal owner – with the document indeed stating it does not cover "loss or damage caused by the use of non-genuine or non-standard charging devices and non-original equipment manufacturer devices (non-OEM) for personal transportation device or electric vehicle charging equipment".

Drive has also checked the product disclosure statements of other leading insurers and found no mention of EV charging equipment, but that doesn't necessarily mean you're home and dry, so it's worth speaking to your insurer to make sure.

"Fires caused by electric car chargers are typically covered, but it is important that it is in good condition, well maintained and is properly installed," a spokesperson for Suncorp, which owns brands such as AAMI, Shannons and Vero, told Drive.

According to AAMI's PDS, "Any permanently housed, connected, or wired electrical appliances (for example, a wired oven) … [or] … any item permanently attached to the building including wall, ceiling, and floor coverings (not carpet)" is covered – with no mention of electric car charging equipment being singled out.

It's a similar story with the NRMA, RAA, RACV, Youi and Allianz – the PDS doesn't mention it, but that doesn't mean non-OEM chargers are definitely covered.

According to several owners, and backed up by EV FireSafe, which investigates the causes of fires in electric vehicles in Australia, insurers are struggling to separate electric cars from the likes of e-bikes and e-scooters, which are not held to the same high standards as cars and pose a greater fire risk.

Vero Insurance, for instance, which is also part of the Suncorp group, has two documents that appear to completely confuse EVs with other lithium-ion powered devices, such as e-bikes and even power tools.

"This is likely to form part of all policies going forward," said one owner. "The main reason is the spate of house fires related to runaway battery charging of e-scooters using non-OEM chargers. The insurance companies don't seem to be able to discriminate between these and EVs."

The situation has been described as "very worrying", showing it pays to do your homework and shop around when choosing insurance for your home when you buy an EV and want a home charger fitted.

A spokesperson for the Australian Securities and Investments Commission (ASIC) told Drive it was up to insurers to make their own assessments of risk, but it would be keeping a close eye on how transparent they're being with customers.

"Whether or not an insurer offers coverage for non-OEM chargers would be based on the insurer's own assessment of the risks and their commercial decisions about what they are prepared to offer cover for," they said.

"ASIC's focus on such matters would be on the conduct aspects – whether insurers are meeting their disclosure of … requirements."

According to EV FireSafe, it's difficult for the consumer to rely on purchasing a charger that meets a global standard, as Australian requirements differ to those in other countries. 

And even then it's still not always that simple, with the RCM tick – that should signify a product meets national standards – not always accurate because the requirement for Electric Vehicle Supply Equipment (EVSE) to carry the tick is "grey at best".

Here's where it gets complicated, if the EVSE has any wireless communication systems, such as Bluetooth, WiFi or cellular connectivity, then it must have the RCM tick – but this is only for that part of the equipment and does not necessarily indicate the electrical safety of the equipment overall.

If the EVSE does not have such connectivity, then it’s up to the importer or reseller to decide if they bother obtaining the RCM tick – the equipment should, in theory, still be safe for Australian consumers under the relevant standards, but it isn’t strongly enforced or regulated.

However, Dan Fish, Head of Technical at EV FireSafe, says one of the biggest problems isn't the equipment itself, but how people are using it.

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"While EVs and EV charging is inherently safe, there are some situations that may increase the risks of a battery fire," he told Drive.

"A huge part of the hazard of EV charging is unsafe charging practices by drivers. We are seeing dangerous things like the use of travel adapters, power boards or inappropriate extension cables leading to fires, as well as charging off older wiring and powerpoints that have failed because of the long periods of the high current draw through the powerpoint."  

Out of around 670 verified battery electric and plug-in hybrid passenger vehicle battery fires globally – out of more than 40 million cars – EV charging has been linked to 15 per cent of cases, and even then it still isn't usually the direct cause of the incident. 

For Australia, there has only been one EV battery fire that was connected to charging at the time, and in this case, it is believed that the point of failure was battery pack-related and had nothing to do with the charger. 

"EV drivers can greatly reduce their risk by avoiding the use of extension cables and never using any travel adapters or powerboards," said Fish.

"It is also recommended to have an electrician check out the powerpoint that might be used for any portable (Mode 2) charging, but it can be made even safer with the installation of a dedicated EV charger by a licensed and experienced electrician.  

"We recommend only buying EV chargers from a bricks and mortar business in Australia with an ABN that specialises in EV charging equipment, rather than online options."

Can I install an EV home charger myself?

In 2024, the Insurance Council of Australia (ICA) produced a paper called Charging Ahead: Electric Vehicles and Insurance, which set out the legislation around charging equipment and offered guidance for insurers.

It states that equipment must meet Australian Standards for EV charging infrastructure – including that it must be fitted by a licensed electrician – as well as Australian Design Rules (ADRs) that focus on high-voltage electrical components, and the National Construction Code (NCC).

"There is … an opportunity for the government and the industry to work collaboratively on evidence-based risk modelling to inform decision-making on the transition to electric vehicles," the paper states.

"The next 10 years also offer a critical window of opportunity for the insurance industry to continue playing its part in enabling the transition to EVs, from supporting driver education and partnering with EV charging providers, to collaborating on repairs and offering tailored insurance products."

The ICA said regulation needs to strike a balance so as "not to be so onerous as to disincentivise EV charger installation, but flexible enough to enable the requirements to be amended over time if data indicates that this is required".

Specifically referring to whether home chargers are covered, it also said, “While third-party manufacturing and installation of EV charging equipment can raise concerns about product-related failures, most associated liability risks – including third-party property damage and injury – may be covered in contractual agreements with the manufacturer, installer and maintenance service provider", but to closely check your terms to be sure.

The post ‘Very worrying’: Hidden insurance clause may not cover EV home chargers appeared first on Drive.