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 the following appliances:

• 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 new ones or be eligible for a lower level of cover. Some insurers might even exclude older appliances (e.g. more than 15 years old) from coverage altogether.

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 like burnout 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 covered by a guarantee or warranty and 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 whether to buy fusion or motor burnout insurance comes down to your 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 benefit more from motor burnout cover. But if you have adequate surge protection and don’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, suppose the motor of your fully stocked fridge burns out. In this case, you’d also be covered for the value of the food inside, in addition to the cost of repairing or replacing the motor.

If the wiring of 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 such damage as well.

If you are unsure about how much a fusion damage or motor burnout cover is going to cost you, you could compare home and contents insurance policies online to get a fair idea. You may also choose to speak with a few insurance providers after shortlisting some policies to get more specific information about the cover and exclusions and to make an informed decision.