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

Mark Bristow avatar
Mark Bristow
- 3 min read
What is fusion damage insurance and why would I need it?

Key highlights

  • Fusion damage insurance protects electrical appliances from damage caused by electrical currents or wiring, offering value and protection for homes.
  • Motor burnout or fusion cover includes the repair or replacement of burnt-out electric motors in household appliances, such as fridges, washing machines, and air-conditioners. Coverage may vary based on the age of the appliances.
  • Consider your individual needs and the preferences of your household when deciding if motor burnout insurance is worth purchasing, taking factors such as lightning strikes, surge protection, and coverage for damaged goods into account. Compare policies online to make an informed decision.
  • Fusion cover protects your electrical appliances and other devices against damage caused by electrical currents or wiring. It’s often an optional extra you can select for your contents insurance policy. While fusion damage insurance may cost a little extra, the value it offers could make a big difference in some homes.

    Motor burnout or fusion damage might occur due to a power surge or excessive current, which  may burn the wiring in an appliance’s motor. This may be the result of a lightning strike during a thunderstorm, or it could be caused by overloaded circuits or electrical faults in the home or the neighbourhood power grid.

    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. 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.

    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, 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.

    Is motor burnout insurance worth it?

    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.

    Compare home insurance

    Product database updated 22 Jun, 2024

    This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.