Phone Insurance is a type of insurance policy that offers you protection when your cell phone is stolen, damaged or lost. During these inflationary times, you should be always protecting your assets from any risks that can drag into debt, and insurance remains a good solution.
Insuring your phones is one of the best decisions you can make. Phones are more than just devices for communicating with friends and family. They’re also the key to our financial security. It’s so important that many of us have come to depend on them for work and socializing. You need to be covered if something happens to them. Phone insurance is very similar to insuring your laptop. They are both very essential devices to have.
Both laptops and cell phones are movable assets. This is because you move around with them most of the time. This poses a higher risk compared to items that you leave in the house. Insurance covers the cost of repairs or replacements in the event the devices are damaged or stolen. Therefore, this advice will apply to Laptop Insurance as well.
What Phone Insurance Policy covers ?
The following events are covered by these policies
- Mechanical Damages to the phone :
- Accidental damage like the phone dropping on a hard surface and cracking the screen.
- Liquid damage : Water or coffee may spill on the phone and cause damage to your cell phone.
- Malicious damage: When someone maliciously damages your phone
- It also covers for replacement of accessories.
What Phone Insurance Does Not Cover? 6 events not covered
You need to be aware of what is not covered to avoid wasting time and effort writing the insurance claim.
- Events before you bought insurance. Your coverage starts when you buy the phone insurance and after the waiting period.
- You can only claim once in a year.
- Minor damage to your phone will not be covered
- Don’t expect your claim to be processed if you intentionally damaged your phone.
- The same case applies when you carelessly exposed your cell phone to danger.
- Where you don’t have proof of purchasing the cell phone when making claim
Phone Insurance vs Warranty
But you will ask yourself, why buy phone insurance when the phone is still under warranty. Manufacturers issue warranties that cover the buyers in some limited cases. The warranty period range from one year to three years. The warranties cover malfunction of devices (mechanical or electric) as promised by manufacturers during the warranty period.
Manufacturer warranties do not over events such as loss through theft, damage caused by liquids and those caused by carelessness of the purchaser. Notwithstanding what is not covered in the phone insurance, this type of insurance is very important to protect your device. At the end of the day, you must choose what works for you.
7 important things you must know before insuring your cell phone.
Having decided to explore phone insurance, you need to know the following
#1. Cell phone insurance is a type of policy that can protect your device in case it’s lost, stolen, or damaged. Not all cell phone plans include this coverage, so be sure to check with your provider before you sign up.
#2. There are a few different ways to obtain cell phone insurance. You can usually buy it as an add-on to your current plan. Or you can purchase a separate policy from a third-party insurer. Policies vary in price and coverage, so be sure to do your research before making a decision.
#3. Most phone insurance policies require you to pay a deductible if you need to make a claim. This means that you’ll have to pay for part of the repair or replacement costs upfront before your insurance kicks in. If you’re not careful, this can add up quickly and end up costing more than the actual value of the phone!
#4. It’s possible to purchase a no-deductible policy from some providers. These types often come with higher premiums that could unjustifiable. Be sure to shop around for one that best fits your needs without breaking the bank. You can avoid insuring your phone entirely if the insurance cost is very close to your aging phone.
5. Insurance providers typically have a waiting period before they’ll start processing claims. This means that if something happens during this period, you might not be able to claim against phone insurance right away. Make sure you’re aware of how long you’ll have to wait and factor that into your decision-making process.
6. If you have an old phone, it may not be worth insuring. The premium you pay for the insurance policy will probably be equal to the value of the phone itself. Make sure that you do your math to ensure numbers add up.
7. Most insurers will not allow you to transfer coverage from one phone to another. This means that if you upgrade to a newer model, your old phone will be unprotected. So make sure you cancel your policy before making the switch!
Here are some providers of Phone/Laptop insurance you can review as you consider buying a plan
Questions to ask your insurance advisor before insuring your phone. A good advisor will answer these questions and more before you ask.
How much premium should I pay?
Is premium payable monthly, or is payable at once?
What happens to loss and theft of phone ?
Is water damage to the phone covered?
How can one avoid deductibles?
How many replacements are allowed in one year?
What happens when I upgrade your phone?
What happens when I travel abroad?
Is data and private information on the device covered?
Don’t forget to ask for the most affordable insurance plan
Read about How To Protect Your House Through Insurance
What happens when need to process a claim under phone policy?
This is what you need to do when you need to claim under the insurance policy.
You will need to notify the insurance company in writing. The insurance Company will provide you with documentation required to support the claim. The insurance company will then process your claim. Most policies require you to pay a deductible if you need to make a claim, so be sure to factor that when filling in the claim.
The insurance company will usually conduct an investigation to detect any fraudulent claims. Ensure that you provide truthful information and documents to help your claim get processed. You could find yourself in jail easily for fraud. Remember, an insurance policy is supposed to return you to the state you were before the event.
I hope you have seen the importance of insuring your device and the process of doing so. By considering these seven factors, you’ll be able to rest easy knowing that your phone is safe and sound. You should always read the policy contract document once you receive it. Seek advice from an Insurance adviser on any terms that you are not clear about. You should also appreciate that insurance is not a source of income. It is supposed to restore you to where you were before the calamity struck. For example, if your iPhone cost you $300 when you purchased it, don’t expect more than that from a policy claim.
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