Everybody loves gadgets. Mobile phones, laptops, iPads, MP3 players, games consoles, SatNav... the list of electronic gizmos is growing all the time, and many of us can’t imagine life without them.
The problem with gadgets is that they can go wrong, get stolen or accidentally damaged. If you can’t live without your iPhone or Kindle, but can’t afford to replace them, what happens then? Does life really come to an end?
If you’ve bought gadget insurance, that’s something you don’t have to worry about. It costs just a few pounds a month, so it might be cheaper to protect your gadgets than you think.
As most of us have several essential gadgets these days, you might want to buy a multi-gadget policy to cover all the little perishers.
Having a seperate gadget insurance policy from your home insurance may be a good idea, as claiming on the policy would mean that your main home insurance policy would continue to build up a no cliams bonus.
Inspect the gadgets
There are almost as many companies selling gadget insurance as there are different gadgets to insure. But watch out, policies differ, and you don’t want to get tripped up by the small print.
So what do you need to look out for?
Repair, replace, recover
A good gadget insurance policy should promise to repair or replace lost, damaged or stolen items within 48 hours of making a successful claim, getting you wired back into your electronic world as quickly as possible.
It should pay the cost of repairs if your equipment is damaged in an accident (or replace it if irreparable), and should also replace any stolen items. Check whether your policy offers “new for old” replacement, although most offer inferior replacement-only cover. A good policy should also offer protection against spilled drinks and mechanical breakdown. Check your policy carefully, because many don’t include loss as standard. You might have to pay an additional premium to replace lost items, which may be as little as £1 a month. Many insurers refused to cover more expensive items such as laptops, MacBooks and iPads against loss.
Go gizmos
Many policies offer worldwide cover as standard, protecting your digital camera, mobile and iPod whether you’re on a business trip or on the beach. They may also offer an account where you can store any digital material in your computer, mobile phone and digital camera, with storage levels of typically up to 3G, the equivalent of around 2,000 digital images. And they may also offer cover the cost of any calls made on your mobile phone after it has been stolen, typically up to a policy limit of £50 to £100.
Beware exclusions
As ever with insurance, you have to watch out for exclusions. Most gadget insurance policies won’t cover theft of any equipment left in your car, unless it has been concealed in a locked boot or glove compartment. And they won’t cover any gadgets if you have left them unattended when away from home, or failed to take reasonable precautions. If stolen from your home, there must be signs of forced entry.
Policies also won’t cover routine servicing, maintenance or cleaning, or replacement of broken fittings such as knobs, bottoms and aerials. And you must get any repairs authorised first, otherwise the insurer may refuse to pay out.
Excessive excesses
You should also check the size of the excess you will be expected to play on each claim. Typically, you might face a £25 excess for smaller items, rising to as much as £75 for an iPhone or £100 for a laptop.
You won’t be able to claim for extras such as lost data or software stored on the gadget, downloaded material, or any subscription fees or re-connection costs.
If your gadget breaks down during the manufacturer’s guarantee period (typically the first 12 months), you should contact the manufacturer for help rather than your insurer. Gadget insurance cover only kicks in after the guaranteed period is over.
