Do you need smartphone insurance?


cracked smartphone screen

Smartphones are more and more essential to daily life, but as the features and technology improve, the costs continue rising. While there are some decent bargain phones for under $300 on the market, so-called flagship models range from $800 to $1000 – and even more with some add-ons and options. When you buy a pricey new phone or replace an old one, one of the first questions you’ll be asked is if you want a coverage plan. It pays to research these things in advance and to understand the pros and cons so you don’t wind up making a quick decision on the spot. You want to weigh the cost of your phone and potential repairs against the cost of coverage. That entails checking with your insurance agent to see what coverage you have on existing policies and what the limits are. Once you know that, research coverage available from the phone manufacturer and your phone provider.

Does your homeowners insurance cover a smart phone?

One question that many people have is “doesn’t my homeowners policy already cover me if my phone is stolen or damaged?” That depends. If your phone is stolen or if it destroyed by a fire or some other covered peril, your homeowners or renters policy would generally cover that – check with your insurance agent to be sure. If it isn’t covered on your existing policy, you could probably have the phone and any other electronics added to your coverage for a small fee. Of course, any claim would be subject to a deductible.

Learn what the coverage limits are. Most homeowners or renters policies will not cover mishaps like screen breaks, technology failures or lost phones. If you feel you need coverage for those types of problems, there are plans available from phone manufacturers and providers so check in advance to see what coverage plans they offer, what they cover and what the cost is.

Here’s a handy article that offers some guidance to help you think things through: Consumer Reports: is insurance for your smartphone a smart idea?

A Consumer Reports survey found that over the last two years, half those who were surveyed reported a major incident with a phone in their household. The incidence rose to 81% if there were kids in the house. Cracked screens are the most common problem reported. The article notes that repairs for a cracked screen can range from $145 on an Apple iPhone 8 to $277 on a Samsung Galaxy S8+. AppleCare+ currently costs $129 for a 2-year plan; Samsung Premium Care is $11.99 a month. Other phone models can have different pricing.  Many describe the manufacturers’ plans as more extended warranties than insurance. Major phone service providers also offer plans that offer various coverage options. Some plans include repairs, loss and theft. With any plan, find out about what the plans do and don’t cover, what the deductibles are for any claims and what the coverage limits are.

So should you get a smartphone insurance plan?

First, check with your agent to learn what insurance coverage, if any, you already have. Learn the limits to your coverage, such as repairs or screen breaks. Then, weigh the cost of your phone and the cost or repairs/replacement with any available plans. You might want to factor in your past experience with phones. Have you had expensive repairs or frequent screen breaks with prior phones? Consumer Reports offers this rule of thumb: if you feel like within a two year period you’re likely to have two or more incidents occur to your phone, you may want to get a coverage plan.