Phone insurance (or any form of gadget insurance cover) exists to try and cushion the financial blow should something unforeseen happen to your phone.

Real risks

That may sound like stating the obvious and perhaps you’re thinking that such situations are unlikely to arise.

If so – you’re perhaps mistaken!

Since the first portable computers and other electronic gadgets arrived around 35 years ago, they have been prone to a series of potential risks including:

– theft; 
– loss; 
– breakdown outside of manufacturer’s warranty; 
– damage through various forms of accident.

Perhaps you think none of these things will ever happen to you. You may carry on thinking like that right up until about just after one of your valuable gadgets become subjected to one of the above circumstances – and that’s when you might wish you had some form of gadget or phone insurance!

The cover

As you may expect, the cover typically available may help protect you from some of the worst financial effects of the above disasters.

Of course, each individual insurance company will typically offer a different phone or gadget insurance product that brings with it different terms and conditions. It is normally a good idea to scrutinise these closely when you’re making a decision as to what cover may be suitable for you.

It’s also worth keeping in mind that the specific provisions of cover may depend upon the exact nature of the gadget you’re insuring.

Typically, gadget and phone insurance cover will comprise:

– global cover; 
– theft (this may not apply if your phone or gadget has been left unattended); 
– data contact list back-up; 
– accidental damage which may also provide for damage due to liquids; 
– the replacement of items within 48 hours of claim approval.

Special notes

A few factors that you may consider:

– loss protection may only apply to mobile phones and PDAs – iPhones may typically be excluded; 
– you may find that laptop computers are not covered by breakdown outside of manufacturer’s warranty provisions; 
– for theft from home premises, you may have to provide evidence that the theft arose from forced entry; 
– in many if not all cases, your claim may need to be supported by a formal police crime report and number; 
– an excess may apply in some cases.

Gadget protection insurance and peace of mind

No insurance can avoid the trauma and inconvenience that losing your gadget can bring. It is also important to note any insurance policy will be subject to policy limitations, exclusions, terms and conditions.

What it may do is:

– significantly reduce the financial impact on your finance; 
– hopefully also reduce the inconvenience by virtue of the 48 hour replacement provisions.

These two things may be worth the price of the gadget and phone insurance premiums.