Most people believe that their gadgets are covered for damage and/or loss through either the warranty or their household insurance. What you don’t know is that these policies often fall short of providing full cover and and could leave you paying out of your own pocket. Gadget insurance is therefore an important option for all your gadgets including smart phones, cellular phones, tablets and other devices.
Here’s what you need to know before selecting optional gadget insurance:
1. Manufacturers Warranty
Every type of gadget comes with a warranty or guarantee when you buy it. The warranty is limited as to what type of breakages will be covered, how many times repairs will be made and have a specified period in which the manufacturer will cover the cost of repairs. This type of cover does not provide for loss, theft or damage that occurred due to dropping the device.
Some manufacturers offer an extended warranty when you first buy the phone. This provides for a longer period of cover and may also make provision for breakages that are your fault. However, your device will need to be sent to the manufacturer or a registered dealer for repairs which could mean that you will be without your phone or other type of gadget for a few days.
2. Home Insurance
Household insurance will cover the loss and/or damage to devices but only if this occurs within the insured premises or property. So if your device is stolen or broken while you are not at your insured address, you will not be covered. Also, most home insurance policies will need you to specify the type and number of devices that you need covered. If you buy a new device and it breaks on the same day of purchase before you have a chance to add it to your household insurance, it will not be covered.
Claiming for the loss or damage to a device on your household insurance may result in a deductible or an increase in your monthly premiums or insurance rate. Some household insurance policies may also restrict the amount of claims that can be entered within a specified period. So if you claim for repairs to a device, you may not be covered for other household theft or disasters when you really need it.
3. Car Insurance
Your car insurance policy may make provision for devices that are stolen or damaged while in your car. This is normally an optional portion of your car insurance – if you don’t select the option, you will not be covered. If you do select the option, you can expect a small increase in your monthly premium or rate.
When you claim, you can expect a deductible and/or premium increase. Other restrictions may also apply. However, this is a great option when used in conjunction with your household insurance to provide more comprehensive cover.
4. Comprehensive Gadget Insurance
Comprehensive gadget insurance is the best option when it comes to insuring your gadgets and should be taken out as soon as possible after purchasing a device. Normally, the dealer where you bought the device will offer you this type of insurance. However, it is recommended to do a little research as this may not provide you with the best value for your money.
When choosing insurance for your gadgets, make sure that your will receive the following cover:
– Damage that is accidental or involves liquid. Be aware that most insurance providers will not cover damage that was a result of intentional abuse of the device such as throwing it against the wall.
– Theft or loss of the phone.
– Charges for calls and/or data usage after a device has been stolen.
– Damage and loss while traveling out of country.
Make sure that your gadget insurance will provide full cover for the cost of repairs or replacement of the device or same or similar device. Be aware that a deductible or excess amount will apply for each claim. Read the terms and conditions and restrictions that may apply carefully and compare quotes and provisions to get the best deal.
Value for money is key in selecting appropriate gadget insurance – the cover you receive should be worth the amount you are paying for your insurance.