Electronics insurance can take many forms, cover different types of devices, and come with varying costs and stipulations. It’s not as standardized as auto insurance. Yet, given how interconnected we are with our electronics, technology coverage is worth considering.
It’s worth taking time to understand the protection you already have available to you — and where coverage gaps might exist. The right electronics insurance policy can help you plug those holes. We’ll help you make sense of your options.
Broadly speaking, electronics insurance helps protect you from financial loss when things go wrong with your devices. Depending on the type of coverage you have, this could include things like replacing your cell phone if it’s stolen or getting a cracked screen repaired.
Gadget insurance might cover just one device or all your devices, depending on the type of policy. You might have to pay extra for coverage, or you might already have coverage for some types of claims if you have a homeowners insurance policy, renters insurance, or a credit card.
Electronics insurance also goes by many different names, which may or may not describe overlapping products:
Service contract
Extended warranty
Electronics protection plan
Homeowners and renters insurance also cover consumer electronics for some losses under the personal property section in your policy. Coverage for electronics is usually limited to a smaller amount, though, unless you buy a separate rider for it.
You’ll also need to file a claim, and your deductible may exceed the value of the device. And a claim could lead to a rate increase down the road. Similarly, manufacturer warranties offer protection only against manufacturing defects, not for things outside the business’s control.
A stand-alone electronics protection plan typically covers only the specific devices you bought it for, such as laptops, tablets, or appliances. But some companies sell plans that cover your combined consumer electronics. Often, they’ll cover common types of damage, such as spills, power surges, and theft, by paying for repairs or a replacement.
Depending on the insurer, you may be able to get coverage for a wide range of tech devices, such as:
TVs
Tablets
Laptops
Cameras
Appliances
Smartwatches
Gaming consoles
Desktop computers
Smart home systems
Home theater systems
Robotic household appliances
Some companies won’t offer coverage for certain types of tech, such as refurbished items or laptops you use for your business — which, according to the IRS, even includes your side hustle.2 That’s why it’s important to read the terms and conditions of the contract before you purchase coverage.
Damage coverage also varies widely depending on the type of policy you have. Here are some common things that technology insurance might cover:
Breakage from drops and other accidents
Component failures
Device malfunction
Liquid damage
Misplacement or loss
Repair fees
Theft
Many device insurance plans exclude certain things from coverage, like cosmetic damage. Generally, they also won’t pay for financial losses your broken electronics may cause, like lost income if you earn money online.
And personal property coverage through home and renters insurance typically covers you only for 16 different “named perils,” like fire, theft, and vandalism. Those policies won’t cover accidents like dropping your device and breaking it yourself.
Paying extra for technology insurance might be worth it for some people, but it’s not right for everyone. Here’s what to consider before you buy:
You can get technology coverage from many different sources. Here are a few:
If you pay extra for technology coverage, the costs can vary widely depending on what type of insurance policy or warranty options you buy. Here’s a sample of what some gadget insurance companies charge:
Progressive advertises two-year consumer electronics protection plans for less than $8 per month, based on a coverage quote for a smartphone, tablet, and laptop, with deductibles ranging from $50 to $100.
Lemonade offers an equipment breakdown coverage endorsement for existing homeowners policies. Coverage ranges from $2 to $3 per month, with a $500 deductible.
Akko offers smartphone protection plans ranging from $5 to $12 per month, with deductibles from $29 to $99.
You have many options for protecting your technology, from extended manufacturer warranties to multi-device policies from major insurers. Here’s some more information to help you weigh which option might be best for your needs.
If you think you’re at higher risk for a covered loss and would have trouble paying for a repair or replacement, technology coverage might be worth it.
A warranty typically covers defects in the device from the manufacturer’s end, like if it stops working prematurely. A tech insurance policy covers more things on your end, like if it’s stolen, lost in a fire, or accidentally broken.
Yes, but often only up to a limit of $1,000 or so. If your tech is worth more than that, you can often purchase a separate endorsement or floater to cover the full value if you were to lose it in a covered accident. But be aware your deductible may exceed the value of the device. And insurance claims can lead to higher premiums later on.
Insurance companies generally cover theft losses under your existing homeowners or renters insurance, or you can get this coverage through a stand-alone consumer electronics protection plan.
Your renters or homeowners coverage provides some electronics coverage when you lose those items away from home, including if you’re traveling.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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