My revised house rules on Fear and Terror. The intention here is to make Fear and Terror more interesting than simply suffering a -1 to hit the opponent. If a Warrior is truly afraid of a Monster, they're not likely to charge them to engage in battle, at least, not until they overcome their fear. And a terrified Warrior is likely to turn tail and run away from the source of their terror!
When a Warrior faces a type of Monster that causes Fear or Terror, they must roll a Willpower Check at the start of their Warrior Phase. If they pass the Check, they are not subject to the Psychological effects of that creature type for that combat. A Warrior can try to overcome their Fear/Terror each Warrior Phase.
The Monster's stated "Fear" or "Terror" value is used in two ways. First, it offers a modifier to the Willpower Check, see the table below. Second, it represents the Battle Level at which point that Monster type no longer causes Fear or Terror.
Effects of Fear
-1 on all to-hit rolls against the Monster type, and Spell casters must pay 1 additional point of Power to cast spells against them. Also, a Warrior suffering from Fear is not allowed to move into a square that is closer to a Monster that they are afraid of.
Effects of Terror
Terror operates in a similar way to Fear, except that the to-hit penalty is -2, and the Spell casters must expend 2 additional Power instead of 1. Also, a terrified Warrior will attempt to use their Movement to move as far away from the source of their Terror as possible, but must still roll to Escape Pinning should they be pinned.
Fear/Terror Modifier Table
Fear/Terror Value Modifier to Willpower Check