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Motor burnout insurance covers the cost of repair or replacement when the motor in an electric appliance suddenly dies. Usually, this happens as a result of a power surge or excessive current, such as a lightning strike. It's also known as fusion damage.
Sometimes, motor burnout insurance is included as standard in home and contents insurance policies but, more often, it's offered as an optional add-on.
Compare brands with motor burnout cover
What is motor burnout insurance?
Motor burnout insurance pays out when the motor in an electrical appliance suddenly dies. This is usually due to a power surge or excessive current, such as a lightning strike.
It's usually fairly inexpensive to add motor burnout insurance to a policy, but there are some key exclusions to be aware of.
How much does it cost?
The cost of motor burnout insurance varies depending on the value of appliances within your home, among other things like if you're the homeowner, a renter or even the landlord. To give you an idea on costs, we gathered quotes from a few different companies for a home and contents policy for a homeowner.
Our research shows that you could add cover to your home and contents policy for less than $100 a year.*
Using the details for the same house, we requested quotes from eight different insurers for a home and contents policy both with and without motor burnout insurance.
The house has a rebuild cost of $1 million and a contents value of $100,000. It's located in the Baulkham Hills suburb of north-west Sydney.
Quotes were last updated in June 2020.
Is motor burnout insurance worth it?
Imagine a lightning strike or power surge burns out the motors in your fridge, washing machine and dryer. That could easily cost hundreds of dollars, or more, for replacement or repair.
However, in many cases, you can add motor burnout insurance to your home and contents policy for less than $100 a year. If you have lots of appliances in your home, or you live in an area prone to lightning strikes and power surges, it's well worth considering cover.
Some motor burnout policies also include coverage for spoiled goods. So if the motor in your fridge freezer burns out, you'll be covered for the value of lost food inside. For bigger families and anyone who likes to stock up, that could be worth hundreds of dollars.
Of course, if you have adequate surge protection, then motor burnout insurance might be low on your list of insurance requirements. Older appliances are often excluded from cover too, so check the product disclosure statement (PDS) carefully to see what the age limits are.
Motor burnout insurance covers the cost of repair or replacement if the electrical motor burns out in one of your appliances.
Types of appliances covered by this insurance include:
Fridges and freezers
Washing machines and dryers
Split-system air conditioners
Vacuum cleaners
Ceiling fans
Electric garage doors
The level of coverage will likely vary based on the age of the appliances. Older motors may cost more to insure than new appliances, may receive a smaller benefit or may be excluded from coverage altogether.
Some policies can also include a food spoilage clause, so if the motor in your fridge freezer burns out, you'll be covered for the cost of the food inside.
What is motor fusion insurance?
Is it the same thing as motor burnout insurance? Pretty much. In fact, we checked a few policies and found that most insurers refer to it as 'motor burnout' instead of 'motor fusion'.
What kinds of exclusions are there?
Some common exclusions for motor burnout coverage are appliances that are:
Each insurance type has a product disclosure statement (PDS) which you are encouraged to read to understand everything you are covered for and what you can claim.
Nicola Middlemiss is a senior writer at Finder, focusing on all things insurance. She's been a journalist for over five years and has contributed to a wide range of industry publications including Insurance Business, MoneyMag, the Educator, Your Investment Property, Mortgage Professional Australia, and Wealth Professional. She has written over a thousand articles covering the insurance industry and now uses that insight to help Australian consumers understand their own insurance policies, and make smarter decisions. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.
A home insurance calculator can give you a rough estimate on the value of your home and contents. But is that what you really want? Find out how to not underinsure or overinsure your home.
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