Considering that many of us will be purchasing or receiving electronic gifts such as computers, Amazon Kindle or iPods loaded with songs it might make sense to understand the coverage limits of our policies.
The following is some general information about coverage but you should check with your specific insurer to be certain.
- Digital downloads are not covered. Some carriers, the IIABA points out, are offering some coverage. The association said agents can suggest to clients that they back up information to multiple locations or purchase a portable storage device to secure and safeguard material against any disaster.
- Sudden loss of an electronic product from a power surge is typically not a covered event. Agents can advise customers to obtain insurance options that include a specialty electronics policy and to use a surge protector or invest in an uninterruptible power supply to protect against an event.
- Agents can advise clients that their deductible would probably be higher than the value of a single electronic gadget. Producers may want to discuss deductibles with their clients and review how that will affect their coverage and price.
- While policies will cover electronic gear, exclusions and perils may apply, such as loss from flood, earthquake or mudslides where coverage is not extended. Also, consumers should know that if that new plasma TV falls off the wall because the customer hung it improperly, it would not be covered.
- Home business equipment has limited coverage under a homeowners or renters policy. Agents can discuss purchasing an in-home business policy with clients for adequate coverage.
- When it comes to gift cards, insurers treat them as loss of cash and reimbursement is limited, usually to $200. Agents can advise consumers to save all receipts and to find out the store’s policy for lost or stolen cards at the time of purchase.
Homeowners insurance may not cover electronic devices, but the very real need for coverage leads to other avenues to protect these items! You can still, at very reasonable cost, cover your electronic goods... just ask for coverage, it is out there.
Jerry
www.leads4insurance.com
Posted by: Jerry | December 13, 2007 1:50 PM | Permalink to Comment