Is Your Home Insurance Policy Ready for Expensive New Electronics? 

What if Santa Claus was bringing you an expensive problem this year? 

When you purchased homeowners insurance, the goal was to protect both your house and everything in it. However, there are limits to how much personal property coverage you have. And your own limits may not be sufficient for any of the pricey new devices that you might be bringing into your house during the holiday season and beyond. 

There are different types of homeowners insurance policies and renters policies, meaning you may or may not have enough device protection for every fancy gadget that resides in your home. So, do you have enough protection, or do you need to make some changes quicker than Santa hops down the chimney? Hold onto your sleigh bells and keep reading to find out. 

How Home and Renters Insurance Covers Electronics 

If you have homeowners insurance, then your electronics will be covered (at least partially) by personal property coverage. If you have renters insurance, your personal goods (including partial electronics coverage) will be protected by similar coverage. 

However, you may not have enough device protection; it all depends on the fine print of your policy. Will you need separate insurance for laptops? What is usually protected, and what gadget insurance limitations do you need to watch out for? Below, you will find the answers for which you are looking. 

What Is Protected Under Standard Policies? 

Typically, homeowners policies provide enough electronics coverage to replace most items (including TVs, phones, tablets, game consoles, and lower-end computers) up to your home insurance policy limits. These items are usually protected, whether they are damaged or stolen, though you may need to submit a police report before filing a claim for stolen electronics.  

With renters insurance, you’ll decide on whether you want to replace your items at their actual cost value (which includes depreciation) or their replacement cost value, which does not include depreciation. A policy with replacement costs more. 

Common Coverage Limitations 

Homeowners and renters insurance will cover damage to electronics in the event of fire, accidents, or other emergencies. But these policies will not pay out if you lose the item or it is damaged or destroyed due to an accident, wear and tear, or natural disasters such as floods and earthquakes.  

Additionally, more expensive items may require proof of ownership, and those items (like, say, a vintage arcade collection) may go over your home insurance policy limits, requiring you to take out a separate high-value insurance rider. 

When You Need Additional Coverage for New Devices 

As you can tell, every policy is different. Therefore, you may or may not have enough home insurance electronics protection. Now is the perfect time to review your policy, but how will you know whether you need additional gadget insurance for new purchases? 

Mostly, you need to take a careful inventory and know how much your collection of personal property is worth. This will let you know whether your current limits are sufficient or if you need additional device protection. Additionally, if the new devices have a high enough price tag, you may need to add a high-value item insurance endorsement to your policy. 

Scheduling High-Value Items for Extra Protection 

Whether you have homeowners or renters insurance, your policy likely has a specific limit for certain kinds of items, like a $2,500 limit for all electronics. Therefore, items that exceed that limit (which might include gaming PCs, professional photography equipment, home theaters, and so on), you may need to take out a separate high-value endorsement in order to properly protect your new purchases. 

When an Endorsement Is Worth the Cost 

Broadly speaking, it is worth getting a high-value rider if your personal possessions exceed the value of existing category limits, like getting a new TV that is worth more than the electronics coverage of your policy. It is worth taking out this additional endorsement if you have rare items, especially those that are likely to appreciate in value (this is why many take out separate jewelry insurance). 

Broadly speaking, it is worth getting a high-value rider if your personal possessions exceed the value of existing category limits, like getting a new TV that is worth more than the electronics coverage of your policy. It is worth taking out this additional endorsement if you have rare items, especially those that are likely to appreciate in value (this is why many take out separate jewelry insurance). 

It is also wise to take out such a rider if you must travel with your expensive electronics, because added time on the road or in the air may put them at additional risk. Finally, if you think pricey items are at additional risk at home (perhaps because you have young children, or you live in an area prone to earthquakes and floods), it is worth getting an additional home insurance electronics rider. 

How To Protect and Document Expensive Electronics 

When you file a claim, it is natural to be nervous about whether it will properly pay out. If you want to ensure that your own claim goes smoothly, you need to know how to properly protect and document your expensive electronics. 

This involves keeping records, including receipts, photos, and serial numbers. If you have had any items officially appraised, you will also need to keep those records. By having proper documentation and keeping backups in a safe place, you will never have to be nervous when filing a claim. 

Keeping Receipts, Serial Numbers, and Appraisals 

Keeping receipts ensures that you will have a record of both what you have purchased and how much those purchases cost. For devices, be sure to write down serial numbers; this can ensure that if you have to replace something like a computer or television, you will get the correct item. Finally, hang onto any official appraisals: They will be invaluable if your carrier or the police have any questions about the exact price of high-value items. 

Storing Photos and Backups Securely 

The more documentation you have, the easier it will be to file either a standard or scheduled property claim. Take photos and record videos documenting ownership of your most valuable items and store this media safely, both in physical locations (like computers and memory cards) and digital locations (like the cloud). That way, your documentation will not disappear in the event of a catastrophe such as a home fire. 

How To File a Claim for Lost, Damaged, or Stolen Devices 

If an electronics item is lost or stolen, you can file a claim by contacting your provider. It is easy to do this by phone, though you may also have the option of filing electronically, either through the carrier website or through a smartphone app. 

What if you need to file a claim for stolen electronics? First, you need to call the police: They will begin investigating the theft, and your coverage provider may need the police report. Call your carrier after you call the police. Remember, both the police and your provider will need as much information about the stolen items as you are able to provide them. 

Get the Right Protection for Every Device You Love 

Now you know why home insurance for electronics is so important. The right policy can protect the most expensive devices while giving you the peace of mind you deserve. But do you know where to find a carrier that cares about protecting your home just as much as you do? 

Here at InsureOne, we specialize in protecting electronics and other major purchases that may require additional protection. When you are ready to treat yourself and your family to the best-in-industry care you deserve, come get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240 to discover our world-class customer service. Finally, feel free to find an InsureOne office near you to discover the difference a friendly local agent can make. 

FAQs 

Does Home Insurance Cover Stolen Laptops or Phones? 

Your standard home coverage typically offers insurance for laptops and phones, whether they are stolen or damaged. Just be mindful of how much the items cost and how much your deductible is: for example, the electronics limit of a standard policy may not cover a tricked-out laptop. Additionally, the deductible amount (typically $1,000 or more) may be high enough that filing a claim is arguably not worth it. 

What Is the Difference Between Replacement Cost and Actual Cash Value? 

Actual Cash Value covers the current worth of the item, which may have depreciated in value over time. Replacement Cost, however, covers whatever amount is needed to buy a new device at current prices. 

Can I Add Coverage for My Electronics Mid-Policy? 

You can always add additional scheduled property riders to your current policy at any time. It is good to do so ahead of major events (like Christmas, birthdays, and anniversaries) that might cause you or anyone else in your family to purchase expensive new devices. 

Are Electronics Covered Outside My Home? 

Electronics in your car or otherwise outside of your home are typically covered by your home policy. However, you may have off-premises limits to watch out for that pay only a fraction (typically 10%) of your personal property coverage. Therefore, you may want additional insurance for laptops or other items you are worried about getting stolen or damaged outside your home. 

What Is the Easiest Way to Document My Tech for Claims? 

The best method to document your technology is through a combination of physical and digital media. Write down serial numbers, hold onto receipts, and keep up with any official appraisal paperwork. Supplement that with photos and videos that prove both what you own and its condition.