Does Homeowners Insurance Protect Against Damage Caused By Your Electric Car?

With the soft hum of electric engines steadily replacing the rumble of gasoline, more and more folks are embracing the sleek future of electric vehicles (EVs). But with this shift comes others new needs including a secure and reliable charging infrastructure, and insurance that gives you peace of mind against home property damage.

While cutting use of fossil fuels is revolutionizing transportation and the auto industry, some lingering myths paint them as unsafe. Let's bust a few safety concerns:

• Battery Explosions: Modern electric vehicle battery packs are rigorously tested and engineered to meet safety standards, making them far less prone to explosions than gasoline fires on conventional vehicles.

• Risk of Electrocution: Proper installation and grounding ensure safe charging, and advanced safety features prevent shocks or electrical hazards.

• Fire Hazards: Electric vehicle fires are statistically less happen than those caused by gas-powered vehicles. According to the National Fire Protection Association (NFPA), 4.9 gas-powered cars of 100,000 experience a vehicle fire, and only 2.5 electric vehicles fires occur per 100,000 vehicles. This means EVs are nearly half as likely to catch fire as internal combustion engine cars.

We connected with Jenny Naughton, Executive Vice President, Chubb Risk Consulting Officer to gain more insight into best safety practices for home charging. For context, Chubb is the largest publicly traded property and casualty company in the world.

Related: How to Choose an EV Charger on a Budget

Safety Tips For Sharing Home Electric Vehicle Chargers

"Electric vehicle (EV) owners often charge at home for convenience," acknowledges Naughton. "An emerging trend is the sharing of home charging stations, particularly in remote areas." While the infrastructure for electric vehicles chargers adapts, companies and vehicle owners look to expand the network by offering private home charging stations. "Apps may soon facilitate this," explains Naughton, "but if you're planning to share your home station, ensure coverage against potential liabilities under your homeowner’s insurance policy."

"With electricity rates at an all-time high, managing EV energy use is crucial for the power grid. Homeowners should check for utility provider incentives like Time of Use rates, allowing charging at reduced costs during off-peak hours," shares Naughton. Manufacturers of Level 2 charging stations are keenly aware of the need to optimize energy usage. Emporia is one company rising to the challenge with its ground-breaking Load Management solution—a power source that offers a cost-effective solution. Emporia's solution diverts power from the home to ensure that the EV charger draws power only during low-demand periods, such as the middle of the night when overnight charging is more cost-efficient.

The Electrical Safety Foundation (ESFI) recently published a campaign around using and maintaining all kinds of electric-powered vehicles safely. Its guide for "Electrification: E-Mobility" helps shed light on more best practices for homeowners and users.

Four Reasons to Upgrade Your Insurance

1. Peace of mind. Accidents happen, and even minor bumps can damage expensive charging equipment. The real danger is failing to have a comprehensive insurance policy for property damage that can cover repairs or replacements and shield you from unexpected financial shocks. No more waking up to a dead charger and a heavy heart.

2. Shielding yourself from liability claims. Let's say a guest plugging into your shared charger experiences electrical issues or property damage. A robust insurance policy acts as your safety net, covering legal costs and potential damages, preventing your bank account from taking a hit.

3. Cybersecurity breaches. In today's digital world, even chargers aren't immune to hacking. Good insurance can guard against data breaches and unauthorized access, protecting your personal information and safeguarding your network from malicious attacks.

4. Protection beyond the charger. Comprehensive insurance often extends coverage to your vehicle and charging cables while plugged in. This means peace of mind even when your car is away from your sight, fueling adventures, not anxieties.

Related: How to Get Level 2 EV Charging Without an Electric Panel Upgrade

Reducing Risk and Maintaining Your Home Systems

In the interest of helping homeowners protect their investment and their property, Naughton expanded with some important tips around home charging safety:

• Regularly update your electric vehicle's firmware and software to avoid unintended consequences.

• Ensure proper lithium-ion battery management.

• Adhering to optimal temperature ranges is key. EVs require cooling systems maintenance, including coolant flushes as per the owner’s manual.

• Keep it clean. Maintain your EV and charging station on a regular basis, keeping the latter clean and covered if outside.