Motor Burnout Insurance

What is Motor Burnout Insurance? 

If you’ve ever had a fridge or washing machine suddenly give up the ghost, you may have had your very own motor burnout experience. Motor Burnout Insurance is cover to repair or replace the burnt out motor so you don’t have to throw out your whole appliance. It’s usually an extra or add-on to your Home and Contents Insurance. 

You might see it sometimes referred to as ‘fusion damage’, although we think this sounds more like you’ve been messing around with nuclear physics than discovered your air con didn’t make it through the last storm unscathed. 

What appliances does Motor Burnout Insurance cover? 

There’s plenty at your place that relies on a motor to work. Depending on your policy, your cover could include: 

• Air conditioning units 
• Pool pumps 
• Motorised garage doors 
• Refrigerators and freezers 
• Washing machines 

Along with these appliances, you could find that your Motor Burnout Insurance includes cover for perishable foods that spoiled because of a motor dying.  So, if a summer storm knocks out your freezer and there’s 3kg of seafood in there, it could cover the cost of a new Christmas feast (but it unfortunately won’t magically make that smell go away). 

If you want to be certain about what’s covered — whether it’s an appliance or food — you may want to check your Policy Disclosure Statement (PDS) or speak with your insurer. 

What events are covered by Motor Burnout Insurance? 

While there can be lots of causes behind a motor burning out, there’s only really two that will mean you can make a claim: fluctuating electrical currents and power surges. Fluctuations in electrical currents are the ones that cause brownouts or your lights to flicker (unless your place is haunted). On the other hand, power surges are when you get a rush of electricity that can overload circuits and damage wiring.  

Something you may want to note though is that power surges caused by lightning might already be covered under your Home and Contents Policy without you needing to get the Motor Burnout add-on. Power surges caused by Thor, the God of Lightning, probably aren’t covered though. 

In regard to how much your insurer will cover, this too can vary and your PDS could be a good place to find the information. However, you can generally expect them to take the economical route: whichever option is cheaper is probably going to be the one they go with. In some instances, this can even mean replacing the entire appliance rather than repairing or replacing the motor itself. 

What doesn’t Motor Burnout Insurance cover? 

As with many parts of insurance, there are technicalities when it comes to motor burnout, including when and what is covered. For instance, if there’s a warranty on your motor, your insurer might say it’s a no-go.  

Other times when you might not be able to make a claim, include: 

• If the motor is submerged or underground 
• If damage occurs through regular wear and tear 
• If you’re wanting reimbursement for hiring a replacement 
• If the motor is used in any way for a business 
• If the motor is in a vehicle, including e-bikes and e-scooters 

You may want to keep in mind though that your Home and Contents Policy could still have your back in applicable insured events, like fire or theft, and damage or loss. You could check what these are, along with exclusions, by reading your PDS.

Helpful tip:

Your Motor Burnout Insurance might only apply to motors that are relative spring chickens. For instance, it may exclude motors older than 10 years. If you like to hang onto your appliances or are a second-hand fan, this might be something you need to think about.

Source: Australian Competition and Consumer Commission – Warranties

Do I need Motor Burnout Insurance? 

If you’re uncertain about Motor Burnout Insurance, there’s a couple of things you could muddle over to see which side of the fence you land on. 

For example, it can be about balancing risk with the cost of an additional premium. So, you may want to have a go at evaluating the likelihood of your appliances’ motors burning out and thinking about how you’d go about getting everything back to normal. Would you need to take out a loan or use your credit card? Or do you have the money ready to go? 

Additionally, you may want to doublecheck if you have any warranties in action. These could mean that you’re already covered but they also may expire before that 10-year mark that Motor Burnout Insurance would. 

Where can I compare Home and Contents Insurance? 

Whether you want plain Home and Contents Insurance or want to delve into add-ons like Motor Burnout Insurance, iSelect can help. Using our online comparison tool, you can quickly see how a selection of different policies measure up. Alternatively, you can give one of our comparison experts a call on 13 19 20.