Should I Get Mobile Phone Insurance?

And you thought dropping your cell phone in a puddle was bad. Recently, a friend’s daughter accidentally dropped her brand-new iPhone in a porta-potty at a high school football game. To make matters worse, this was the second time she’d lost or damaged a phone in only a few months.A homeowners policy will cover your “personal property,” including cell phones, even if they are lost or damaged away from your home. But since the girl’s parents’ homeowners policy had a $500 deductible, it would hardly pay anything toward the lost phone. 
Nearly every cell phone carrier offers an insurance plan that costs only a few dollars per month. Are they worth the cost?

Your cellular provider’s policy probably also has a deductible, although it might be smaller than your homeowner policy’s. Verizon’s plan, for example, has a deductible that ranges from $45 for a basic phone to $199 for a 32- or 64 GB iPhone 5. It also limits you to two replacements in a 12-month period. At $9.99 per month, coverage costs about $120 per year. That, plus the deductible, makes the cost of covering a higher-end iPhone more than $300 per year.

Buying a heavy-duty water-resistant case for your phone might prove a better investment. The case will protect your phone from drops and some water damage, although it won’t help you if it’s lost or stolen.

Identity theft is a growing concern for mobile device users. If you use your mobile phone or tablet for shopping, banking or other financial transactions, make sure it’s password-protected and only use wi-fi networks you know and trust. This can prevent unauthorized individuals from accessing your accounts or personal identifying information. You can also install an app that will lock your phone if it’s lost. Simply call your lost phone and input your code, and nobody else will be able to gain access to your information.

Some homeowners insurance policies include identity theft protection. Others will allow you to add this coverage for a small additional cost. Identity theft coverage can help you by putting you in touch with experts who can help you repair your financial records and restore your credit rating. It will also help you recoup some of your costs to repair your identity. For more information, please contact us.