Increasing risk factors for underinsurance
The nature of risk is evolving
The FPA is seeing more fires that have an electrical source to their ignition which may have a lithium ion battery connection, and the London Fire Brigade has reported that the fastest growing fire risk in London is battery-powered e-bikes and e-scooters, which are causing a fire ‘every other day’.
Both landlords and tenants must be aware of the risks and make sure that e-bikes and e-scooters meet the correct safety standard and are safely stored.
See our landlord and tenant guide to preventing e-bike and e-scooter lithium battery fires for guidance.
While many landlords are making energy efficiency improvements to their properties for the benefit of the environment and their tenants, it’s important to understand the materials that are being used and take any necessary precautions to reduce risks.
The FPA is seeing an increase in large fires caused by solar panels, some of which are cheap, aren’t always built correctly and can be faulty.
Commenting on the push for more sustainable and eco-friendly materials being used to repair and build properties, Williams says:
I have a suspicion that a lot of these new materials are being invested in to save money in the long run through better insulation, better performance, etc, but we’re not seeing it in increased sums insured. We are seeing a sometimes quite staggering increase in underinsurance at the time of a loss.
“It is having a massive impact. Mass timber is great in certain circumstances, but wood burns. Therefore, it’s about understanding the materials that are specifically being used and applying preparators. It might be sprinklers, it might be water mist. And those are things that we in the UK have been very lax on.”
Williams highlights the direct impact of energy efficiency improvements on underinsurance. He says:
It’s important for landlords to be aware of these increases in risk combined with macro-economic pressures to avoid being underinsured.
