GADGETS GALORE
The whole world has fallen in love with technology, but not the insurance
FROM LAPTOPS and mobile phones to drones and sat-navs, the world seems to have fallen in love with gadgets. Yet such is the dependence many have in these personal articles that it is surprising more do not fully insure their possessions.
Start by checking your home contents policy. This is the straightforward way and possibly the cheapest to protect against loss, theft and breakage. However, this means taking the ‘personal possessions’ option for cover outside the property.
With better insurers, this element may be included as standard such as Churchill Home Plus, Direct Line Home Plus, Privilege Platinum and Select Premier.
Contents insurers realise there is a need to protect for electronic and portable items as technology sales rise. Apple sold 41m iPhones in the three months to July 1, up from 40.4m in the three months to June 25 a year ago. Halifax Home Insurance Ultimate offers cover for personal items worn, used or carried in everyday life such as tablets, laptops and mobile phones away from home.
Each article is insured up to £3,000 and customers can select their own overall sum insured value up to £15,000 with Halifax Home and £25,000 with its Ultimate scheme.
The premium will vary depending on several risk factors, postcode and claims history. Consider both the compulsory and voluntary excess, which is the initial amount you will pay with a claim. Direct Line, for instance, has an excess from £50 whilst Churchill and Privilege have £100.
Most insurers will only cover gadgets which have been bought new and proof of purchase can be provided. This excludes buying from a friend or online such as through an auction like ebay or Gumtree.
Look also at the age restriction for gadgets, calculated from the starting date of the policy. One of the leaders, Gadgettravelinsurance, will cover equipment up to six years of age, double the restricted rate offered by Endsleigh which aims for the student market. Several insurers place maximum age restrictions of six months for a tablet and three years for a camera.
CoverCloud and Debenhams state three-year limits whilst Leisure Guard accepts only up to 18 months.
A further factor that a specialist may cover, unlike a general home insurer, is support if there is electronic failure.
Technological improvements have changed values as well as size. A mobile phone 30 years ago cost £2,000 – £5,000 in today’s money – and weighed 1.5 kilograms with 30 minutes of battery life.
With valuable articles, it is important to check the single article limit. This may be expressed in two ways: forming part of unspecified valuables – perhaps typically 30 per cent of the sum insured – and when individually named and priced.
Gadgets should be insured for the current replacement cost, such as at least £2,250 for certain Apple MacBooks.
Insurers will not usually protect for articles placed in luggage that goes into an aeroplane hold. Gadgets are expected to be carried on to an aircraft as part of hand luggage in the cabin. Exceptions have recently been made for travellers flying to and from the US.
One of the most expensive ways to insure is through the retailer who sold the item. Instead of agreeing to an exorbitant rate from a slick salesperson, check elsewhere. Many current accounts with packages include mobile telephone insurance.
Nationwide, the largest building society, has worldwide cover for a range of services with its FlexPlus account which costs £10 monthly, rising to £13 from September 21.
Often policies do not protect outside the UK but the Campbell Irvine cover, sold online as www. gadgettravelinsurance, is unique as the protection is for any period abroad up to 12 months. It offers three premium levels: from £2.95 for up to three gadgets of £1,000 each or £500 for an ipad or tablet, from £3.84 for five articles (£2,000 each) and from just £4.44 for seven gadgets (£3,000 each), all with low excesses.
Managing director Anthony Kaye says cover is extended to the UK when at least two nights’ accommodation have been prebooked or the journey involves a sea crossing or flight. Cover can be for single trips up to 90 days, annual multi-trip with four duration options (up to 31, 45, 62 or 92 days) and even a long stay policy which provides for time abroad up to 12 months in duration.
Where a gadget is stolen outside the UK, report its loss immediately to the police and obtain a crime reference number.
Insurance giant Ageas launched an enterprising personal possessions scheme a year ago which is easy to use and involves no annual contract, no penalty fees and the choice to switch gadgets.
A study by Opinium Research for Ageas found that five million 18 to 34 year-olds had no home contents insurance and that 2.3m travel abroad without cover. With mobile phones the most precious item for this age group, a surprisingly high 7.1m did not insure them and yet the cost to replace was £3.1bn.
It is an app-based insurance, called ‘Back me up’, is available online and has no broker involvement. It allows the individual to cover the items they value most. It allows a photo to be uploaded and a description of the item to be given. Users are able to switch possessions in and out of the policy whenever they want for a flat monthly £15 fee. This covers for up to three gadgets against accidental and malicious damage, loss and theft with a £3,000 total claim limit.
The policy also comes with annual mobile phone screen repair, regardless of whether the phone is one of the three designated items.
The excess is £50 but reduced to £30 for mobile phones. Up to £1,500 is available to replace car or house keys and locks. Other additions include landlord conflict cover to adventure sports. Administered from Bournemouth, the policy is restricted to 17 to 49 year-olds.
Andrew Hagger, of Moneycomms, says: “Back me up will undoubtedly appeal to the millennial market – it’s cost effective, flexible, simple to manage on your smartphone or online and protects the most important things in your life without tying you down to longterm contracts.”
Drones, the unmanned remote-controlled aerial vehicles, can be covered by the Ageas policy. It is the speciality of coverdrone.com, the trading name of John Heath (UK) of Crewe. To help cash flow, the latter allows 10 instalments through the year for an annual premium.