Do I Need to Take Out Gadget Insurance?

Caeva O'Callaghan | May 8th, 2020

Special gadget insurance protects your devices against loss or theft, along with many other risks. But is it worth buying? Find out inside.

Gadget insurance is a separate kind of insurance that protects your electronics. Having separate gadget insurance is a great idea if you’ve built up a decent no-claims bonus, and want to protect it.

This is because your gadget insurance is a whole different policy, so claiming on it won’t affect your main home insurance policy.

In this article, we’ll answer questions such as:

  • Are my gadgets covered by my home insurance?
  • Why do I need phone insurance?
  • Is it worth taking out gadget insurance?

Gadget insurance is offered by many providers, so it’s handy to know what you’re looking for before you get started.

What is gadget insurance?

Gadget insurance covers the cost of replacing or repairing your gadgets if they are damaged or stolen. Gadgets generally are defined as small electronic items that are easily portable, and which you might take out of the home.

As well as your phone and laptop, these might include:

  • Tablets
  • MP3 players
  • Handheld games consoles
  • Kindles or eReaders
  • Smart watches (like a Fitbit)
  • Cameras
  • Sat navs

You can buy gadget insurance to cover just one gadget you own, like your laptop, or you can buy a policy that covers all of them. Like other insurance policies, gadget insurance usually has a single item limit. This means they won’t pay more than this amount for any one item, for example €1,000.

Good reasons to buy gadget insurance

If you’re umm-ing and aah-ing about buying gadget insurance, take a look at your lifestyle. Could you afford to replace your most valuable electronic gadget if someone stole it? And if so, would you be forced to “make do” with a second hand one, or could you comfortably afford a new one with a warranty?

Come to think of it, are your gadgets still under warranty? Are you quite clumsy, and have you broken or lost your gadgets before? Do you live in a high-crime area? And do you often take your gadgets out of the house?

The reason for this last consideration is that your gadgets will already be protected under your house insurance, as long as they usually stay in your home. For example, if you have a large desktop computer with a monitor and speakers, it will be covered under your home insurance contents policy. But, if you decide to lug it all the way to your friend’s house to play some games, it won’t be covered.

Similarly, if your laptop always stays indoors, it should be covered by your home insurance. But if you regularly work from coffee shops, gadget insurance could give you extra peace of mind.

What does gadget insurance cover?

Gadget insurance covers a few more risks than if you leave your electronics under your standard home insurance. Because of how often you use these items, and for particular purposes, you may find that protecting your items against these extra risks is worth it.

This varies between insurers, but you can usually cover the following:

  • Theft
  • Loss
  • Mechanical breakdown
  • Accidental damage
  • Liquid damage
  • Worldwide cover

Of course, please read your individual policy document carefully, as some exclusions may apply. Not all insurance providers cover your gadgets for all of these risks as standard.

As you can see, insuring your gadgets with separate insurance will cover you for almost any eventuality. A pickpocket grabs your phone? No worries. Leave your laptop on the train? Your insurance will cover it. Your tablet stops working, and it’s out of warranty? No sweat. And if you spill your drink on it or drop it down the stairs, your insurance will cover that, too.

Worldwide cover will protect you for up to 90 days, anywhere in the world. So no matter if you’re in a Dungeons & Dragons tournament downtown or on a beach in Bali, your gadgets have protection.

What does gadget insurance not cover?

Of course, gadget insurance policies aren’t all-encompassing. There are some limitations. For example, insurance never covers you retroactively. That is, it won’t pay for damage or loss that occurs before your policy begins.

It also won’t cover gadgets which your policy doesn’t include. Check carefully to see if your policy only insures one item, or if all the gadgets you own have protection.

Also, your gadgets have a limited kind of protection already. Your separate insurance won’t pay for damage which the manufacturer’s warranty already covers. Always look at the warranty first.

You need to reasonably protect your gadget, which means not leaving it in plain sight. Being obviously careless with your things will invalidate your policy.

Additionally, gadget insurance won’t cover electronics that are not new or refurbished to manufacturer standards when you buy your policy, cosmetic damage such as scratches or dents, or digital content such as downloads and software.

As always, give us a call and we’ll be happy to point you in the right direction when it comes to gadget insurance.

All Information in this post is accurate as of the date of publishing.