In recent years, the U.S. has recorded an alarming increase in fires caused by lithium-ion batteries. For example, in California, a fire at the Moss Landing energy facility led to the evacuation of 1,200 people and the closure of a highway for three days. And in the city of San Diego, these batteries caused at least 83 fires over the past year (from 03/01/2024 to 03/26/2025). And this is data for only one state.
Lithium-ion batteries are everywhere: in phones, e-scooters, electric razors, sometimes in hair dryers. But when they ignite, the consequences are catastrophic. And insurance companies often do not cover the real damages.
On-Site Adjusting explains why lithium-ion battery fires are so dangerous and how insurers underpay compensation. The firm also demonstrates the value of a public fire adjuster with a real case in Chicago.
Why Lithium Battery Fires Are So Dangerous
The main reason for ignition lies in the phenomenon of thermal runaway. This is a completely uncontrolled process when the battery overheats, releases gases, and eventually explodes or catches fire. The temperature in such fires is on average three times higher compared to typical gasoline ignitions.
The consequences are disastrous for both residential and commercial properties. The risk of catastrophe is higher where batteries are stored or used in large quantities.
The fire spreads instantly, often without warning. Load-bearing structures are damaged, even steel columns fail under the temperature. Altogether, these factors complicate firefighting, increase the extent of losses, and create additional risks for insurance coverage.
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Case Study — Fire at a Chicago Battery Facility
In Illinois, at a factory producing batteries for electric scooters, a fire occurred. The massive fire quickly spread, burning steel supports. This led to structural collapse.
The facility owner contacted the insurance company. The insurer offered to pay $748,772.85. Although this may seem like a large sum, it was significantly underestimated.
Had the offer been accepted, the owner would have lost half a million dollars. Instead, he hired a licensed claims adjuster from On-Site Adjusting, which completely changed the course of the case.
So what did the public adjuster for insurance claim do?
- Conducted an independent inspection of the facility for a total loss inventory.
- Documented all structural damages.
- Prepared proof of loss with technical reports.
- Led negotiating a settlement agreement directly with the insurer.
As a result, the payout increased by more than $525,000 compared to the insurer’s initial offer. The total compensation reached $1,273,945.18. In addition, we obtained a monetary payment in the amount of $2,628,117, which covered the costs of restoring and replacing business personal property.
This case demonstrates how the insurance company underestimated key commercial fire damage, while a citizen adjuster restored fairness.
Why Insurance Companies Lowball Fire Damage Claims
Underpaid insurance settlements are not a mistake of insurers; they are a strategy. They use different methods to save the budget of the company they work for. Common practices include:
- Overstating depreciation, when the insurer artificially lowers the value of damaged elements by pointing to their age or wear, even if they were fully functional before the fire.
- Ignoring hidden fire damage, not visible during a surface inspection (for example, damages caused by smoke or high temperatures).
- Involving preferred vendors, who prepare minimal estimates without considering the full scope of work.
This is especially relevant for large commercial properties, where compensation amounts exceed a million dollars (as in the Chicago case). Without an independent total loss inventory, property owners risk accepting a payout that does not even cover half of the real costs.
How On-Site Adjusting Fights Back
On-Site Adjusting does not accept the first offer. Instead, the company analyzes, documents, and proves the real value of damages.
The work of the local public adjusters at On-Site Adjusting includes:
- Providing independent, unbiased damage assessments without the participation of the insurance company.
- Collecting a full package of evidence such as photos, engineering reports, and repair estimates.
- Preparing a proof of loss that meets the terms of the policy and eliminates opportunities for manipulation.
- Leading insurance claim negotiations with the company’s representative.
- Preparing the case for court together with a first-party claims attorney, if needed.
On-Site Adjusting is licensed to handle insurance claims adjusters in Wisconsin, California, and Illinois. In Illinois, the company also provides a full cycle of restoration work.
In the Illinois factory case, On-Site Adjusting not only secured a $1.27M payout – the team of fire damage contractors also fully restored the facility after the fire.
Why does this case matter to every property owner? Lithium-ion battery fires are not isolated incidents. Apartments, private houses, offices, warehouses, factories, and garages can all catch fire. Property owners must understand how not to be deceived.
What To Do If You Experience a Lithium Battery Fire
To avoid losing the right to compensation or accidentally agreeing to a low settlement from the insurer, property owners should act step by step:
- Ensure personal safety first, then contact emergency services.
- Inform the insurance company about the incident, but do not accept the first offer.
- Document everything – take photos, videos, collect witness statements, and request a report from the firefighters.
OR there is another option: property owners can call an independent public adjuster from On-Site Adjusting, who will take over all processes, including documenting damages, negotiation and settlement with the insurance company. The earlier On-Site Adjusting is contacted, the higher the chance of receiving a larger payout.
Final Thoughts
Lithium-ion batteries are also about convenience, since they are in many household devices and appliances. But they are also a potential source of serious damages. And when a fire happens, the insurance company rarely acts in the property owner’s interests. Almost never.
If property owners are facing residential or commercial fire damage, they should not delay. The On-Site Adjusting team will help with damage assessment, preparation of evidence, and fighting for fair compensation from the insurance company.
Property owners can request a free review of their claim by calling the On-Site Adjusting team at (866) 861-4992 or (866) 933-0404, or by filling out the contact form.
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