Need to know: Gadget insurance
June 12, 2024In the many stages of human development, we’ve reached what can be called the Gadget Age. From computers, laptops, and tablets to network servers, from smart televisions to smart telephones, from printers to scanners, and to home security or sound systems, gadgets are everywhere – and a practically indispensable feature of everyday life.
So indispensable have many of our gadgets become that we are well and truly lost without them if something goes missing, is lost, stolen, accidentally damaged, or breaks down.
Gadget insurance – what it covers
Gadget insurance does just what it says on the tin – if any one of your specified gadgets suffers loss or damage, the policy typically reimburses the value of that loss (less any excess) so that you can repair or replace the gadget in question.
Gadget insurance policies typically can cover just a single device, or multiple ones.
Just as with other types of general insurance, gadget insurance policies differ in their scope and just what risks they cover. The following are some of the broad categories of risk typically covered:
- loss;
- theft;
- accidental damage; and
- breakdown, electrical or mechanical failure.
Policies may cover just some or all these types of risk, so it is important to consider the likely vulnerabilities of your gadgets when choosing the most appropriate insurance.
The fine print of any policy will also make it important to establish exactly:
- what types of accidental damage are covered (immersion in water for electronic gadgets, for example);
- whether you need to take specific measures for the security of your gadgets;
- the amount of any claims excess;
- the estimated time taken to settle any claim for the repair or replacement of lost or damaged gadgets;
- if refurbished gadgets are also covered; and,
- whether you need proof of purchase relating to any existing manufacturer’s or supplier’s warranty.
Is it worth it?
In these straitened times of cost of living increases, insurance might be one of the first expenditures you’ll want to sacrifice. In the case of gadget insurance, you might also argue that most of the items you’re looking to safeguard are in any case covered by your home contents insurance.
Although you’ll want to avoid paying twice for insurance of the same articles, bear in mind that the excess on many home insurance claims could be more than the value of the gadget in question – making separate gadget insurance well worth the usually modest premium.
If you are making such a comparison, you might also want to check whether your home insurance is subject to restrictions on items taken away from your home – since gadgets are among the items you’re most likely to take with you whenever you go out.
Do you already have gadget insurance without knowing it?
As we touched on in the section above, you may already have gadget insurance. For example, some home insurance policies may include cover for your electronic devices under the contents section.
If you bought your device on a credit card, it may also be covered. And some bank accounts may include gadget insurance as part of your package.
So, if you are considering gadget insurance, do check that you don’t already have cover elsewhere. And if you do, ensure that the protection offered covers everything you need.
Buying your gadget insurance
If you decide to go ahead and buy gadget insurance, economies may be made by investing in insurance that covers multiple gadgets under the same policy – remembering to check just how many gadgets are covered under that one policy.
On the other hand, if many of your gadgets are already covered either by home insurance or the travel insurance you have arranged for a trip abroad, for example, then a single-item gadget insurance policy is likely to serve the purpose.
Summary
Gadget insurance can prove a very prudent safeguard for many of those gadgets on which everyday actions have come to depend.
Policies come in all shapes and sizes, including those that cover multiple gadgets and those designed for a single device. In any event, however, when weighing up whether it is worth it, consider the extent to which various gadgets might already be covered either by your home or travel insurance or other financial packages.