Investing in electronics can be an exciting opportunity. From 3D televisions to incredible gaming systems, there are many products on the market. And after you choose one, you face a different dilemma: Should you purchase the service plan.
It's a misconception that home insurance can always cover electronic losses. It can do so, but sometimes only in limited situations. Certain services plans can become assets in these situations. The service plan often provides coverage for a whole different set of risks than those home insurance provides for.
When does Home Insurance cover Electronics Losses?
Most home insurance plans provide contents coverage. This means the items that belong to you and are stored within your home have coverage. These plans may include electronics and other valuable investments.
However, there are limits to this coverage. Factors such as the peril, the item and its cost may impact the coverage.
What is the Peril?
The home insurance plan can cover unexpected and unavoidable losses. This may include a home fire, theft, vandalism, or damage from a storm. In the insurance industry, these incidents are called perils.
An identifiable peril is often necessary to file a claim for electronic losses. This means that claims do not cover repairs due to broken parts. They do not cover replacement due to mechanical failures or upgrade needs. And they will not cover a tech issue unless one of the covered perils causes it.
Essentially, if you want to get coverage for electronics, a peril has to specifically affect the item or items in question.
What is the Item?
The item covered usually must be found in the home regularly. Policies often not cover items that do not belong in the home permanently. Therefore, if you invest in specialty or non-traditional electronics, you’ll need to make sure that they have coverage under your policy.
How Much is it Worth?
Most home insurance plans have a per-item limit. That means the policy will cover the item up to a certain point. Your policy will list what the per-item limit is. If your electronics item has a value higher than this, it will only pay up to that limit. You may wish to take a look at your policy now. If you own an item valued higher than this limit, consider a rider. You can purchase a rider, or supplemental coverage, that protects high-end electronics from covered perils.
That electronics warranty or service plan is still helpful. It protects against the mechanical losses your item may experience. It can help you in a different way than your home insurance can.
Discuss your policy with your insurer. Do you have enough protection for your electronics? If not, you may wish to increase your coverage. That way, you can minimize risk for covered situations.
Are you covered? Stewart Kriese Insurance Agency at 209-847-8025 for a home insurance quote.