Lithium-ion batteries and their charging systems are resulting in at least one home insurance claim for fire damage per month, AMI data shows.

The New Zealand insurer, which is owned by IAG, says there was a “surge” in such claims prior to 2021, but trends have continued at a similar rate since then.

“Consumers should be mindful of reputable battery production when purchasing electrical products,” AMI EGM Claims Wayne Tippet said.

“There is nothing inherently dangerous about lithium-ion batteries, so long as they are treated correctly, and basic safety measures are followed.”

AMI says use of lithium-ion batteries has soared over the last decade, as they are found in an increasing number of everyday products including phones, laptops, headphones, smart watches, children’s toys, tools, electric cars, bikes, and scooters.

“These batteries are very useful because they hold more energy, so they can last longer, and they charge faster than regular batteries,” Mr Tippet said.

“However, for many consumers, lithium-ion batteries are newer technology, and so it is important to make sure you are using them safely.

“The data is also a reminder to check your insurance policy and make sure you are covered should a lithium-battery powered device start a fire.”

Fires generally start with the battery overheating and eventually catching light or, in some extreme cases, exploding.

“We have seen cases of chrome books, e-bikes and e-scooters going up in flames or even exploding after being left on charge.”

Lithium-ion battery caused fires are more severe and lead to serious damage, but Mr Tippet points to three preventable causes.

“Three of the main causes we’ve seen are defective parts, incorrect charging, and mistreatment.”

Defective parts often come in poorly produced items bought from cheaper and less reputable manufacturers. Correctly matched chargers are far less likely to overheat.

“It is also important to note that it is the battery itself that catches fire; not the device the battery is found in.

“The boost in consumer interest in electric cars, bikes and scooters over the last few years is an excellent shift to help reduce transport emissions. The takeaway is not that these products or their batteries are inherently dangerous, but a reminder of steps that consumers can take to protect themselves.

“AMI will continue to insure e-bikes and scooters, electric and hybrid cars, mobile phones and laptops.”