Dec 5, 2025
One e-scooter with a lithium-ion battery: That’s all it took to burn down a home that had been in a Florida woman’s family for nearly 50 years. The same kind of gadget, and ones with similar batteries, sit in homes and garages across the country.
After hearing a small popping noise, Monica Snead discovered a fire in her grandson’s bedroom. Within minutes, it had destroyed a large part of her home, including the bedrooms, hallway, bathroom, countless heirlooms, and irreplaceable memories.
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Thankfully, everyone in Snead’s home, which has been in her family since 1977, was unharmed. But the fallout will leave a lasting impact on her family’s financial future. Even with insurance, the repairs and other costs are likely to run into the thousands.
“I really didn't have a whole lot of knowledge about lithium-ion batteries, but I do now,” Snead said in an interview with Tampa Bay 28.
“Please don't leave scooters in the house,” she warned, adding that electric cars and smartphones also have lithium-ion batteries (1).
Some common household toys carry financially devastating risks
Although lithium batteries are generally safe and unlikely to fail, they can pose a fire risk. Hundreds of lithium-ion battery fires were reported in New York City alone in 2023 (2).
Snead believes an e-scooter sparked the fire that destroyed her home. But other common devices with lithium batteries include cameras, cell phones, e-bikes, hover boards, laptops, power tools, and toys. When defective, or used incorrectly, these batteries can overheat, catch fire, or explode, leading to devastating consequences.
You might assume that damage caused by a lithium battery fire would be completely covered by home insurance. Unfortunately, that’s not the case. Some policies may limit or exclude coverage for battery-related fires. Plus, you might need to meet certain safety requirements in order to qualify for coverage (3).
Using off-brand chargers, aftermarket batteries, or uncertified products could jeopardize an insurance payout. For example, if you purchase a third-party battery for your e-bike, your insurer may not cover the damage if that’s what starts a fire at your house.
Beyond potential coverage exclusions for lithium battery fires, many homeowners simply don’t have enough insurance coverage to pay for all of the rebuilding after a devastating fire. With around 14% of homes uninsured (4) and millions of homeowners underinsured, that could leave many on the hook for thousands in rebuilding costs after a battery fire (5).
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How to protect your home and your finances
Snead’s ordeal highlights how a single fire can dramatically impact your finances. If you don’t have the right insurance, a seemingly innocent lithium battery could truly derail your financial future.
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The first step in protecting yourself is to evaluate the devices in your home. Take a look at any toy or tool that has a lithium battery. Make sure that each carries a UL certification, which offers the best indication that a battery meets safety standards (6).
In addition to making sure the batteries you have are certified, confirm that each device is charged with an original charger approved by the manufacturer — not a cheap third-party charger, tempting as it is. Don’t overcharge your devices, and stop using them if you notice any damage.
Do not store batteries in extremely hot or cold locations or in an area that blocks the only exit out of a room. Never try to repair or modify batteries or devices that take them yourself, and immediately dispose of batteries that show any signs of damage, using your community’s hazardous waste disposal system — never, ever the home garbage. Charging e-bikes and scooters should be done outdoors (7).
Beyond treating your lithium battery devices with care, it’s also a good idea to take a closer look at your insurance policy to confirm your coverage is adequate. As you audit your home insurance policy, look for any exclusions relating to battery fires. Additionally, confirm that your dwelling coverage matches the costs of rebuilding your home today (8).
While you can’t prevent every tragedy, taking action to properly store your lithium batteries and double-checking your insurance policy needs can help you protect your financial future.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Tampa Bay 28 (1); FSRI (2); NW Insurance Council (3); LendingTree (4); Kin (5); UL (6); NFPA (7); Mass.gov (8)
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
