Insurance for gadgets - Does it make sense?

If the first image that comes to your mind whenever you hear the term 'apple' is that of an iPod, then you must be in love with gadgets. The half-eaten apple not only revolutionized the way people adore their tech tools, but also transformed the definition of apple itself. A true gadget freak wouldn't mind spending thousands to lay their hands on their cherished dreams. If you're one amongst them, imagine losing one of your recent favorites for which you might have saved for months. Even thinking about such a situation might make you skip your heartbeat. Well you needn't worry anymore since there's always the option of insurance. The loss might seem less painful if you have protection for your gizmos in the form of gadget insurance.

What is gadget insurance?

Gadgets have made their way into the daily lives of the people. Hardly anyone lives a life completely devoid of gadgets these days. Thus, ensuring the safety of the gadgets, on which you're dependent, makes complete sense. Gadget insurance serves the purpose. It compensates the owner financially, if the covered gadget gets lost, stolen or damaged.

When does gadget insurance provide coverage?

Gadget insurance compensates the policy holder for the repair and replacement of their insured gadgets. Claims against a gadget insurance policy are made under certain situations. Such an insurance policy will pay for the financial loss in case

1. The gadget gets subjected to water damage or spills.
2. The screen of the gadget gets cracked.
3. The touch screen of the gadget becomes dysfunctional.
4. The gadget gets stolen.
5. The owner drops or damages the device accidentally.

Sometimes, gadget insurance policies also compensate for fraudulent usage of the tech tool, after it gets stolen. However, the extent of coverage varies from insurer to insurer. While you're on the look out for a gadget insurance protection, you'll need to specify the coverage that you want for yourself.

Why is it sensible to cover your gadget with insurance protection?

The following points will hopefully explain why it is sensible to buy gadget insurance.

1. The homeowner's insurance generally ensures coverage for the gadgets in home, during crisis situations like damage due to fire etc. However, it won't pay if the gadgets get stolen.
2. Most gadgets come along with a guarantee or a warranty period. This type of coverage ensures protection for a limited time period. However, they usually don't cover accidental damages.
3. Extended warranties can also be sought within 30 days of purchase. Though they offer protection in case of malfunctions, drops, spills and other accidents, they don't serve during loss or theft. Thus, gadget insurance makes complete sense for protection of the valuable assets.

When not to buy gadget insurance?

The electronic goods gradually depreciate with time. A gadget insurance policy should be bought while the goods are new. Insuring old gadgets doesn't make sense at all, if the cost for the insurance is more than the value of the device. Besides, certain home owner's policy would extend coverage for gadgets if personal articles coverage is added with the existing policy. This way it won't even stretch out your budget.