Is There Coverage For My Cell Phone If I Lose It?
You’ve just lost your phone. It’s your worst nightmare come to life! Well, that may be a bit dramatic, but we all know the inconvenience and high cost of replacing a mobile device. A new cell phone can cost upwards of $1,000 off of contract. This sudden cost would be a lot for most people to bear unexpectedly. So, what are the alternatives to shelling out all that cash?
Claim under your property insurance
If your home, condo, or tenants’ insurance policy contains coverage for mysterious disappearance, you may be able to claim under your contents coverage. However, your insurance policy most likely has a deductible that would apply to all claims under the policy and could make filing a claim prohibitive. For example, if your home policy deductible is $1000, you would be responsible for the first $1000 of any loss. If it cost less than that amount to replace the device, there would be no coverage for the loss.
Even if your deductible amount is significantly lower than the loss amount, it would be prudent to contact your broker to discuss what could happen to your rates should you make a claim. Often times, making a claim on property insurance does not affect your rate directly, but it can cause the removal of a claims free discount. These discounts can be as much as 45 per cent. If that was the case, the subsequent premium increase would likely be a deterrent from submitting a claim.
Purchase separate insurance
If you have a high deductible but still want insurance on your phone or mobile device, there are options available. Many insurers offer a separate policy addition, called a rider or floater, to insure certain classes of contents separately. These items are also referred to as scheduled items. You pay a separate premium to cover these contents on an all peril basis to an agreed upon limit, often with a low (and sometimes no) deductible. You’ll want to ensure disappearance is included under your policy. Also, check with your broker to discuss the best course of action for you. Even a claim on a scheduled item could affect your premiums going forward.
Buy coverage from your mobile provider
Some mobile providers offer coverage for certain types of damage or loss. However, most do not offer coverage for disappearance. What your mobile provider offers may not be as comprehensive as you think. Talking to your insurance broker (like KTX Insurance Brokers Ltd.) is the best way to ensure you are getting the property insurance you need and want.