What is fusion damage insurance and why would I need it?

Motor damage or fusion cover takes care of the reasonable cost of repairing or replacing burnt-out electric motors in household appliances that are included in your insured contents. It may cover the motors in appliances such as:

• Fridges and freezers
• Washing machines
• Dryers
• Vacuum cleaners
• Ceiling fans
• Electric garage doors
• Air-conditioners

The level of coverage is likely to vary with the age of the appliances. Older appliances may cost more to insure than newer ones, or may only be eligible for a lower level of cover. Some insurers might even exclude older appliances from coverage altogether if they’re over a maximum age limit, such as over 15 years old.

Like every insurance policy, there are exclusions to your motor burnout coverage. This means you won’t be able to claim for motor burnout in certain situations, such as when the burnout is caused by general wear and tear.

Often insurers also won’t cover damage caused due to faulty switches, fuses and heating elements, and fusion damage due to leaking of refrigerant gas. You also cannot claim damages for a motor that is already covered by a guarantee or warranty, or the cost of repairing underground or submerged motors.

As always, it’s important to read the product disclosure statement (PDS) to understand what is covered and what you can claim.

Your decision of whether fusion or motor burnout insurance would be worth buying will come down to your household’s individual needs and preferences.

Some electrical surges that cause burnout or fusion are the result of lightning strikes, so people who live in areas that experience frequent thunderstorms may enjoy greater benefit from motor burnout cover. But if your home has adequate surge protection and doesn't experience stormy weather often, motor burnout protection might not be a priority for you.

Some motor burnout insurance policies also provide cover for damaged goods. For example, if the motor of your fully stocked fridge burns out, you may be covered for the value of the food inside, as well as the cost of repairing or replacing the motor.

If the wiring in the motor of any of your appliances burns out, it may cause smoke and fire damage to surrounding objects. Some motor burnout policies may cover you for this damage as well.

If you are unsure about how much fusion damage or motor burnout cover is going to cost, you could compare home and contents insurance policies online to get a better idea. Once you’ve gotten quotes from a few insurance providers and shortlisted some policies, you should have a better idea of the cover and exclusions that are available to help you make an informed decision.