EV fire in Cheras tests whether Malaysian home insurance can handle the blaze

KUALA LUMPUR, 19 AUGUST 2026 —

Malaysian Insurers Clarify EV Fire Coverage After Cheras Incident

The incident, which occurred on Aug 18, saw an EV reportedly charging on a porch before catching fire, causing extensive damage to a two-storey house. No injuries were reported, and authorities have not yet confirmed the cause of the fire or the EV model involved, according to the Malaysian Fire and Rescue Department (BOMBA).

PIAM has emphasised that standard home insurance policies in Malaysia typically cover fire damage, regardless of the ignition source, including EV-related fires. However, coverage remains subject to policy terms, conditions, and exclusions, provided there is no fraud, deliberate act, or breach of policy conditions.

“So fire is a fire. It goes through the same phase, whether it is caused by an EV or caused by a short circuit. So if you have a fire policy protecting the building, then if there’s a fire even from an EV, that’s being covered,” said PIAM CEO Chua Kim Soon in a prior statement.

Policy Nuances and Coverage Gaps

While EV-related fires are not automatically excluded from standard Houseowner or Fire insurance policies, PIAM advises homeowners to ensure their properties are adequately insured. This includes notifying insurers of permanent EV charger installations and ensuring electrical compliance with regulations.

Permanently installed EV chargers may be classified under the “buildings” section of a home insurance policy as fixtures and fittings, while portable charging cables typically fall under specialised EV motor insurance policies or add-on packages.

PIAM also recommends that EV owners review both their motor and home insurance policies to identify potential coverage gaps involving the vehicle, charging equipment, and residential structure. Coverage can vary between insurers, so homeowners should consult their providers for specific details and available add-ons.

Safety and Compliance Key to Claims

Insurers require homeowners to take reasonable precautions and maintain electrical safety standards. Claims assessments will consider official investigation reports, including those from BOMBA, to rule out deliberate acts such as arson or fraud, as well as non-compliance with statutory regulations.

PIAM highlighted illegal or uncertified electrical modifications as examples of potential non-compliance. Homeowners with EV chargers are strongly advised to notify their insurers to ensure the property’s Sum Insured reflects current rebuilding costs and to avoid underinsurance.

PIAM’s Building Cost Calculator can assist homeowners in determining adequate coverage. For properties where fires could spread to neighbouring premises, such as terrace houses or condominiums, evaluating public liability limits is advisable. Standard Houseowner policies typically provide RM50,000 in public liability coverage, with optional extensions available for higher limits.

Regional and Industry Implications

The clarification comes amid growing EV adoption in Malaysia, with the government targeting 10,000 EV charging stations by 2025 as part of its low-carbon mobility push. Industry stakeholders say the Alam Damai incident underscores the need for clearer guidelines on EV fire risks and insurance coverage.

“As EVs become more common, insurers are refining their policies to address unique risks, including charging-related incidents,” said an insurance industry analyst who requested anonymity. “Homeowners must proactively update their policies to avoid coverage gaps.”

PIAM’s guidance aligns with global trends, where insurers increasingly treat EV fires similarly to conventional vehicle fires in claims assessments, provided safety and compliance standards are met.

Stakeholder Perspectives

Chua Kim Soon reiterated the importance of transparency in insurance declarations. “If you’ve installed an EV charger, notify your insurer. This ensures your Sum Insured reflects the current value of your property, including modifications,” he said.

For EV owners, the incident serves as a reminder to review both motor and home policies. “Coverage can vary widely between insurers, so it’s to check the fine print,” said a spokesperson for a major Malaysian insurer.

BOMBA’s investigation into the Alam Damai fire is ongoing, with no official cause confirmed at this stage. Authorities have not identified the EV model involved, and Mercedes-Benz Malaysia has not issued an official response.

Forward-Looking Measures

Industry observers expect further refinements in EV-related insurance policies as adoption grows. PIAM has urged homeowners to prioritise electrical safety, including professional installation of EV chargers and adherence to local regulations.

“Prevention is key. Ensuring your electrical system is up to standard reduces the risk of fire and strengthens insurance claims,” said a PIAM spokesperson.

For now, Malaysian EV owners are advised to take proactive steps: review insurance policies, declare EV charger installations, and maintain compliance with safety standards. As the EV market expands, clearer guidelines and improved coverage options are likely to emerge, but vigilance remains essential for homeowners.

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