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

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

Can you imagine a day without the convenience of basic household appliances like your refrigerator, dishwasher or washing machine? We all rely on a range of household devices to get through the day. But the cost of replacing these items if they are damaged can put household budgets in the red. That’s why people often insure their valuables, like computers and household appliances, with home and contents insurance.

Not all policies are created equally, though and there are different levels of cover when it comes to your contents insurance. Fusion cover protects against damage created by electrical currents or wiring. It’s often something you have to opt for at an additional cost.

What is motor damage or fusion cover in home insurance?

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. Typically, it covers 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 from coverage altogether.  

Standard exclusions to motor burnout coverage

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. 

Is motor burnout insurance worth it?

Whether or not to buy fusion or motor burnout insurance comes down to individual needs and preferences. Motor burnout or fusion damage might occur due to a power surge or excessive current that may burn the wiring in the motor of an appliance. This may happen during thunderstorms when lightning strikes. People who live in areas that experience frequent thunderstorms may benefit more from motor burnout cover.

Some motor burnout insurance policies also provide cover for damaged goods. Suppose the motor of your fully stocked fridge burns out. In that 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 you have adequate surge protection and don’t experience stormy weather often, motor burnout protection might not be a priority for you. Also, if your appliances are more than 15 years old, they might be excluded from motor burnout protection.

Once again, whether you choose to include a motor burnout cover in your home and contents insurance or not is your personal choice. 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.

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This article was reviewed by Kate Cowling before it was published as part of RateCity's Fact Check process.



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