What is Gadget Insurance?

Full Definition

Gadget insurance is a policy, sold either as a standalone product or as an add-on through a mobile network, retailer or bank account package, that covers accidental damage, theft, and sometimes loss, of personal electronic devices such as smartphones, tablets and laptops, typically for an annual or monthly premium plus an excess payable on any claim. Cover often overlaps with protection already available elsewhere -- many home contents insurance policies include cover for gadgets both in and away from the home (sometimes as an optional add-on called "personal possessions" or "away from home" cover), some premium bank accounts bundle in phone insurance as a account perk, and many phone contracts and manufacturer warranties already cover manufacturing faults, though not accidental damage or theft -- so a common piece of consumer advice before buying standalone gadget insurance is to check what cover may already be included elsewhere to avoid paying twice for overlapping protection. Standalone gadget insurance policies typically exclude cosmetic damage that does not affect the device's function, require the gadget to be reported to the police within a set time if stolen, and cap the number of claims allowed within a policy year, and premiums and excesses are usually higher for the newest, most expensive handsets given their higher repair and replacement cost.

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