Insurance Carriers becoming critical on Lithium Batteries

ttmott

PhD in OCD
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TECHNICAL Contributor
Apr 3, 2012
8,019
Space Coast Florida
Boat Info
2006 52 Sedan Bridge
Engines
Cummins QSM11
Some Insurance intel.
I'm hearing that insurance coverage is being rejected/withdrawn on boats with Lithium batteries powering the boat in any form. Right now, I understand coverage is being rejected regardless of compliance to standards (ABYC) by some providers. I do not know about OEM applications which there are many and more coming. So, if your insurance survey is coming due, anything on the survey about an owner installed lithium battery system will be a risk. If your policy has language regarding these battery systems you may also be at risk in the event of a loss; review your policy when it's renewed. I knew things were going to be iffy on the advent of the ABYC regulations and why I was having my design reviewed and stamped by an independent engineering company. Now, however, I'm going to defer my installation until things are better defined by the insurance carriers. One additional thing - Surveyors will, no doubt, be looking at and documenting these lithium power systems now that the ABYC standard has been adopted; even though the standards pertain to OEM installations.
Just an FYI.
 
This also gives me pause. My current policy is silent on lithium.
 
Yep, mine asked about lithium batteries this past Oct.

Glad I use my generator so much ...
 
Are these the same insurers that cover vehicles and RV’s?
 
Are these the same insurers that cover vehicles and RV’s?

I think the issue becomes very different, the Auto OEMs have teams of 100s involved in the designs, testing, validation, millions of test miles, etc.... vs someone buys some battery on the web, a charger from ebay, and installs them himself.
 
Are these the same insurers that cover vehicles and RV’s?

Lithium is commonplace in the RV world. I am actually going to do it in the spring to my 5th wheel. Mine came prewired for solar (most rv's do now) for ease of customer conversion, and I will just need to add the Lithium batteries (factory supplied converter/charger is lithium ready) The manufacturer of my RV now offers Lithium from the factory, I just bought 2 years too soon :( I have not heard of anyone having insurance issues with RV's over Lithium, and there are thousands of them out there with DIY lithium setups. RV's will be all lithium in a few years.
Don't want to do it yourself? Companies like this are springing up everywhere.
Kind of nice for those who just want to write the check.
Advanced Energy and Solar Power | Future Solutions | United States (fsi-solutions.com)
 
For the type of battery being discussed the hazard isn't the battery but rather the system around it and protecting it.
ABYC is more concerned with reliable safety in operating the boat.
Insurance is more a global knee jerk; probably, in reaction to some reckless installations like using Tesla Cobalt based battery banks with a twenty-dollar BMS, undersized wiring, and uncontrolled charging application.
All of us that want to move over to the batteries will pay the price for awhile.
 
I think the difference between boat and RV coverages is in part due to the cost differences between replacing an RV or a boat. You can get a really nice RV for $200,000, but there are lot of average boats costing a lot more, so I think it comes down to insurance carrier risk exposure and their tolerance for big payouts in the event of loss.
 

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