Motor burnout cover

What is motor burnout?

Motor burnout, also known as electric motor burnout or fusion damage, is when the motor in a major household appliance, such as a fridge or washing machine, stops working. These appliances often have an electric motor in them, which converts mechanical energy into electrical energy. However, a power surge or excessive current (such as lightning strike) can cause the motor to ‘burn out’ and stop working.

In the case of something like your fridge or freezer breaking down or a front-loading washing machine stopping mid-cycle, motor burnout can cause huge inconvenience, waste and potentially high repair or replacement costs. That’s why many people consider purchasing insurance policies that include cover for this type of mishap.

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What is motor burnout or fusion cover in home insurance?

Motor burnout insurance, also known as fusion damage insurance, covers you for damage or loss of electrical appliances from motor burnout in your house. The cover generally comes included as standard or as an optional extra in home and contents or contents only insurance policies. If it’s an optional extra, it’s usually a cost that is added on to the standard policy premium. It can sometimes be called motor damage insurance, fusion insurance or electrical burnout insurance. You may be able to add on motor burnout insurance to your existing home insurance policy, so it may be worth checking with your insurance provider to see if they offer this type of cover.

What does motor burnout insurance cover?

Motor burnout insurance (or fusion damage insurance) typically provides cover for damage to major appliances, such as:

• Fridges and freezers

• Washing machines and clothes dryers

• Dishwashers

• Air conditioners and ceiling fans

• Ovens and cooktops

• Electric garage doors or gates

While most policies will offer it—at least at an additional cost—the degree to which you’re covered for motor burnout will typically vary. This information can be easily found in the relevant policy’s Product Disclosure Statement (PDS). For example:

• Some motor burnout policies may also come with a ‘Food Spoilage benefit’, which means that you’ll be reimbursed a certain amount of money in order to pay for any food that may have gone off or spoiled as a result of your fridge or freezer’s motor breaking.

• Some motor burnout policies may cover not only the appliance itself, but also belongings surrounding it that are damaged by the motor burnout event.

What does motor burnout insurance exclude?

Exclusions will vary from policy to policy, so it can be a good idea to check a policy’s PDS for more information. However, some common exclusions for motor burnout coverage include:

• Smaller appliances, such as hair dryers, radios, televisions or portable heaters.

• Expected wear and tear.

• Motors over a certain age: some policies may only pay a claim on a burnout if the motor was less than five years old, or will require you to pay some of the replacement costs if the motor was older than five years.

• Different policies may have different maximum amounts you can be reimbursed for the motor (the maximum benefit limit), and some may be much lower than others.

• The breaking or damage of a lighting or heating element, a fuse, an electrical contact or switch.

• A motor covered by a guarantee or warranty.

• A printed circuit board.

• Any amplifying electronic equipment.

• Damage caused by the leaking of refrigerant gas.

• Retrieving or replacing pool pumps or other submersible pumps.

Is motor burnout insurance worth it?

Whether or not motor burnout insurance is worth the expense is a personal decision, but it could help to weigh up:

• The cost of insurance, including what you can afford to pay in premiums.

• The extent and conditions of cover (for example, if you usually have a large amount of food stored in a freezer, perhaps you might consider policies that have food spoilage cover on offer).

• If there is any excess to pay on claims (and if you could afford this).

• The age of your appliances and if they are covered by any warranties.

• The cost to replace or fix your appliances.

• What you think your likelihood of claiming might be.

This could help you get a general sense of whether motor burnout insurance (or fusion damage insurance) could be worthwhile. Then, it could be a wise idea to research your options to work out what policy could best suit your needs. You can compare home and contents insurance policies with Canstar, which you could use to help form a shortlist of policies before getting quotes from providers. You may need to check with a provider directly to confirm if they offer motor burnout insurance, either as a standard inclusion or optional extra.

Additional reporting by Nick Whiting.

Cover image source: LightField Studios/Shutterstock.com