What would we do if we didn’t have access to electronic devices? It’s hard to imagine life without them, yet they may be costly to replace or repair if they break. There could come a time when an extended warranty or insurance for expensive home devices will come in handy.
Electronics insurance, sometimes known as “gadget insurance,” compensates you in the event that your mobile devices are stolen, damaged beyond repair, or otherwise rendered useless and you are unable to use them outside of your house. But, do you really need such protection?
Find out what kinds of insurance policies are available, how they cover gadgets, and where you can buy them below.
Do your gadgets have coverage already?
It’s possible that more of your tools are protected by insurance than you think. Before shelling out money for gadget insurance, be sure you have adequate financial protection through other means, such as a credit card or existing insurance.
Rental and property insurance
If you have renters’ or homeowners’ insurance, the personal property section should cover your electronics. This means that your property is usually protected if it is stolen or damaged by a covered peril such as fire, wind, or hail.
There are restrictions:
- Most house insurance policies won’t reimburse you if an electronic device you own malfunctions or is damaged outside of your home.
- There could be a cap on how much money can be claimed for mobile devices like computers, tablets, and cellphones, perhaps $1,500. (You may often purchase more coverage.)
- If your electronics are stolen or damaged beyond repair, without replacement cost coverage your homeowner’s insurance will only pay the fair market value. In most cases, that won’t be enough to get new ones in their place.
- Your insurance company will take your deductible, or the amount you are responsible for paying, from any reimbursement you get. So, if your $800 phone is stolen and your homeowner’s deductible is $1,000, you’ll be out of luck.
Additional warranties offered by your credit card
If you made your electronic purchase using a credit card, make sure you take advantage of any rewards it may provide. An extended warranty may protect you from any potential issues with the product.
An additional year of coverage on top of the standard manufacturer’s warranty is provided at no cost when you use certain Visa, Mastercard, and American Express cards. Due to the similarities between this coverage with the original warranties, your equipment is usually insured against manufacturer defects but not against theft, loss, or accidents.
You may be qualified for cell phone service if you use the card to pay your bill with another card issuer. If you’re a Wells Fargo cardholder, for instance, you’re covered if your phone is lost or stolen.
Not sure whether your credit card provides extended warranty protection? Call the number on the back of your card or log in to your account online for a full rundown of your card’s perks.
The operation of electronics insurance
Accidental spills and drops are not covered by manufacturer warranties or homeowner’s insurance, but they are by electronics insurance. If your device breaks or malfunctions, you can file a claim to have it repaired or replaced at no cost to you. There might be a service fee or deductible involved.
A quick note on terminology: when shopping for electronics protection, you may come across terms like “extended warranty,” “protection plan,” and “service contract.” Despite their similarities, these products are subject to various regulations. What is covered is more important than the plan’s name. (and excludes).
Mobile devices and portable computers are the most common targets for individual electronics insurance. However, there are companies who sell packages that include a number of devices, such as a TV, a gaming console, and a home theater system.
Some choices can be paid for on a recurring monthly basis. Some are only good for a set period of time, usually between two and three years.
In certain cases, complete coverage may take some time to kick in. Some plans require you to wait up to 30 days after enrolling in coverage before you may submit a claim. There may be restrictions on the age of the device or the amount of time you have after purchasing the item before signing up for a plan.
It is common sense to read the fine print of any insurance policy or service agreement before signing it.
Do you require insurance for electronics?
There is a wide range of factors that impact the value of an insurance policy for electronic devices. The largest one is how frequently you anticipate having to get repairs done.
If, for instance, your phone is protected by a solid, waterproof case and you routinely take good care of your possessions, phone insurance may be unnecessary spending. However, if your small children want to play with your phone with their eager, clumsy fingers, it may be a good idea to invest in insurance.
The numbers might not add up even if you’re sure you’ll need maintenance down the road.
Think about getting a $49 deductible, two-year Upsie warranty for your new iPhone for $129. You have two years to file a claim for a broken screen, but you can only do it once.
HomeAdvisor, a service recommendation website, estimates that fixing a cracked iPhone screen can cost between $70 and $330.
The total price of the Upsie warranty, including the deductible, is $178. The warranty’s viability in this case depends on the extent of the damage.
When deciding on a strategy, it’s important to think about the following:
- How confident are you in the safety nets of your credit card and home insurance?
- What kinds of damage are not covered by your present policy but would be by the electronics insurance?
- How much will the plan, including any applicable copays, coinsurance, and deductibles, cost each month?
- Is the prospect of having to immediately fix or replace your gadget expensive?
Where can I get insurance for electronics?
Phone insurance is sometimes available through your cellular provider in addition to extended warranties given by big-box shops like Best Buy and manufacturers like Apple. However, you may also want to check out alternative service providers, such as the ones I’ve included below.
If you sign up for the more expensive of Akko’s two contracts, you’ll be able to protect not only your phone but also up to 25 more devices, such as laptops, tablets, cameras, game consoles, and even power tools.
The following are covered by the plan:
- Broken screen.
- Leaks and water damage.
- Accidental injuries.
- Component failures in mobile electronics such as phones, TVs, and laptops.
- Missing phone (only covered for customers who pay annually).
- It’s possible to provide student discounts.
Strategies for Allstate Protection
Through a third-party vendor named SquareTrade, Allstate provides specialized protection policies for a wide variety of electronic devices. A family plan can cover up to four phones at once.
Accidents like spills and drops are often covered, along with mechanical and electrical breakdowns. Allstate’s roadside assistance, identity theft recovery, and tech support are all included for one full year with this upgraded package. Theft and loss are not covered by any plan.
Phone plans have recurring monthly costs. Most other devices have a warranty period of two to three years, at your discretion.
Asurion provides two distinct protection plans, one for your phone and one for almost all of your other electronic devices. This includes electronic gadgets such as computers, TVs, iPads, smart speakers, and routers.
The following is covered by phone plans:
- Broken screen.
- Problems and shortcomings.
- water marks, etc.
- Altering the power source.
- Broken or stolen.
- Accidental harm.
In the event of a breakdown in your home’s extra devices, Home+ will pay for repairs caused by:
- Typical wear and tear.
- An increase in vitality.
- Conditions of high temperature, dampness, or claustrophobia.
- Damage from drops and spills to mobile devices like laptops and wearables.
- In contrast to the phone plan, Home+ does not provide coverage for theft or loss.
Asurion plans include a monthly fee that must be paid. The Home+ bundle, along with a few other phone plans, is available for purchase on the company’s website. However, you could only get certain phone plans by going via your telecom operator.
Upsie offers customized extended warranties for a wide variety of electronics, such as mobile devices, computers, and smart home systems. In most cases, a warranty will last for two or three years.
Upside warranties typically cover more than just loss or theft, depending on the equipment. This might include problems like liquid damage, broken screens, and battery failure. A list of what cyber insurance does not cover is available.
Emma, the founder of The Info Book, started with a passion for Sports Blogging in 2013. He has continued his passion for Blogging and desire to improve his skills and wanted to share his journey and helpful knowledge with other like-minded individuals.
He launched The Info Book as an outlet for those interested in learning more about Sports in hopes they can take what they learn and apply it for themselves!