It is believed that
millions of cellular phones will be lost, stolen, or
damaged each year. Most automobile and homeowners
policies do not cover this type of equipment for theft,
loss or damage. If they do, they have premiums that can
be very expensive with high deductibles which is usually
more than the actual cost to replace your phone.
Auto insurance coverage is
only intended to apply to phones that are permanently
attached to the vehicle. A mount refers to a bracket
mounted to the vehicle that allows the unit to be removed
for safekeeping. It does not refer to a bracket mounted
to a vehicle so that the phone can be removed for use
elsewhere. With that in mind, most cellular phones are
not covered under the basic Auto insurance policy
coverage since they were designed to be used in a variety
of locations. What about your home insurance policy? Most
insurance policies will extend to the cellular phone,
however there are restrictions and all are subject to the
policy deductible that can range from $250 to $500. If
the phone is used for business, there probably wouldn’t
be any coverage outside of your home. But if you have a
business policy, and your cellular phone is
actually used as a business phone, you will probably have
coverage available through that policy.
The next thing you have to
know is that there are different types of cellular phone
insurance coverage. In addition to theft, loss or damage
protection, insurance programs may include mechanical or
electrical failure coverage. Note: Not all programs
include mechanical or electrical failure coverage.
Mechanical or electrical failure damage is anything that
happens to the internal workings of your wireless
equipment. So if your phone just stops working, or it
malfunctions, or your keypad fails, The insurance program
may cover that. Make sure you know exactly what type of
insurance coverage you are paying for when you get it.
Also look at what the monthly fee will be to have the
insurance and ask about the deductible on the policy.
Make sure you ask how long it will take to repair or
replace a damaged or lost phone. And ask if the policy
covers a cellular phone based on current market value of
a replacement phone or if the phone is depreciated due to
use and age.
