What You Need to Know About Your Smartphone

We can no longer live without our smartphones; this little computer goes everywhere with us. As a result, there's a good chance that the device will get damaged or stolen at some point. This should, of course, be resolved quickly.

What about smartphone insurance?

Damage to a smartphone is generally covered under a home contents insurance policy. The coverage and terms vary by insurer, so it's important to always check the policy conditions to see if and how damage to your smartphone is covered.

Coverage

Common damages—such as cracks and water damage—are often covered under home contents insurance, but the phone must have been damaged indoors. Some insurance policies also provide coverage for damage that occurs outdoors. Your location, such as living in a busy city, can affect the coverage.

Home contents insurance does not cover loss or theft of a smartphone.

Conditions for Compensation

The amount of compensation you will receive for the damage depends on the age of the device. The older the device, the lower its value, and as a result, you may receive a lower payout. A smartphone typically depreciates over three to four years.

Many insurers also set a limit on the amount of compensation for smartphone damage. Additionally, some insurers will only compensate you if the device is repaired by a contracted repairer.

Excess (Deductible)

In addition to the rules about compensation for smartphone damage, many insurers also apply an excess (deductible), meaning you'll need to pay a portion of the damage yourself.

Stricter Rules

The rules regarding compensation for smartphone damage have been tightened in recent years due to the high number of claims received by insurers. Many of these claims involved small amounts of damage, while the processing costs were relatively high.

Special Insurance

You can also take out a special electronics insurance policy. The terms and compensation for this vary by insurer. Sometimes, it may be worthwhile to take out a separate electronics insurance policy, but this can be quite expensive compared to the coverage you receive.

Compare and Review

The best insurance for you depends on your personal situation. The terms and conditions around coverage differ between insurers, so it’s important to review them in advance.

Do you have any questions about the coverage of your existing or new home contents insurance? Feel free to contact us for assistance.