It is one of those terms you might notice listed in your insurance policy, sitting there alongside fire, storm and theft, but what does fusion actually mean? And more importantly, would you notice if you did not have it?
Fusion cover protects you against damage caused by the sudden burnout of electric motors. Think air conditioning units on a sweltering summer’s day, refrigeration systems working overtime, pool pumps, garage doors or entrance gates. When these things stop working, it is rarely convenient and often expensive.
Unlike general wear and tear, fusion relates specifically to internal motor damage caused by electrical current or wiring. Without the right cover in place, the cost to repair or replace these components can quickly add up, not just in parts and labour, but in disruption as well.
So while fusion cover might not be the most well-known line item in your policy, it can still be extremely valuable. Because when the systems you and your tenants rely on every day suddenly fail, having the right protection in place makes all the difference.
So why does fusion damage happen?
Fusion damage is typically caused by an electrical event that places sudden stress on a motor. This might be:
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A power surge - a sudden spike in electricity, often caused by overloaded circuits, damaged wiring or external supply issues.
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Excess electrical current - including fluctuations in the power supply such as brownouts, voltage dips or even lightning strikes.
When this happens, the electrical current running through the motor’s windings becomes too high. The insulation around the wiring overheats and breaks down, causing the internal components of the motor to burn out.
And what does that actually look (or sound) like?
If you have ever heard a sharp snap, crackle or pop followed by a safety switch tripping or a circuit breaker cutting out, you may have experienced a motor fusing. Sometimes there is also that unmistakable smell of melting plastic or burnt wiring lingering in the air.
Neither is a good sign and more often than not, it means the motor inside the appliance has failed and will need repair or replacement.
What appliances in a rental property can actually fuse?
Even if your property is not fully furnished, there is a strong chance you provide appliances for tenant use such as built-in or ducted air conditioners, electric heaters, ceiling fans, dishwashers and electric ovens. You might also supply a fridge and freezer, stove, washing machine, dryer, or even a motorised garage door.
Does landlord insurance cover fusion?
Yes, specialist landlord insurance often covers fusion. However, keep in mind that not all policies include fusion cover and if they do, not all appliances are automatically covered, so it is important to read the PDS.
What does fusion cover actually pay for?
Fusion cover pays the reasonable cost of repairing or replacing burnt-out electric motors in insured household appliances. It can also protect against resulting damage, such as smoke or fire damage caused by a fused motor.
However, it does not cover motors that fail due to normal wear and tear. There may also be exclusions, for example, damage caused by:
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faulty switches, fuses or heating elements;
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leaking refrigerator gas;
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appliances still under warranty; or
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items located underground or submerged (such as some pool pumps).
The full details, including exclusions, are outlined in the PDS.
How does EBM RentCover support landlords?
All EBM RentCover policies automatically include fusion cover, unlike other insurers that may include it as an optional extra.
EBM RentCover policies also cover appliances up to 15 years old, whereas some other providers only cover appliances up to five years old. This can make a difference for landlords with older properties or contents, helping ensure valuable appliances are protected against unexpected motor burn-out.
Got a question about fusion cover? Contact the EBM RentCover team on 1800 661 662 to learn more.
*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are there, contact 1800 661 662 if you have any questions.
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