Electronics Insurance Coverage: What You Should Know

It’s no secret that smartphones, tablets and watches have become an integral part of modern life, and for many people, damaged devices may mean an inability to work, study or communicate. But the cost to replace or repair your electronics can add up quickly. If you already have homeowners insurance, you may be wondering if your electronics are covered. The short answer is … it depends. 

Insurance for Electronics

There are various factors that impact whether or not your devices are covered under an existing policy. Here’s what you need to know.

Does Homeowners Insurance Cover Cell Phones and Electronics?

In general, your homeowners policy will typically provide coverage to repair or replace certain items if they’ve been stolen or damaged by fire or another covered peril. However, it’s important to review your policy for any special coverage limits that may apply. There may be limits as far as how much is covered for certain types of personal property:

• A home insurance policy typically won’t cover the expenses if your electronic device stops working or it’s damaged in an auto accident. 
• Your homeowners insurance may also only pay the item’s current value rather than paying the cost to replace.
• Homeowners insurance typically won’t cover electronics that have been lost or misplaced.
• Portable electronics — including smartphones, laptops and tablets — may be covered only up to a certain sublimit. (However, you can usually buy additional personal property coverage.)
• Any payout from your insurer will be reduced by the amount of your deductible. So, if your $800 phone is stolen, but your homeowners deductible is $1,000, you won’t get anything from your insurance policy.

Does Homeowners Insurance Cover Lightning Damage to Electronics?

Wicked weather can occur without much warning. It’s a familiar scenario: you start to see the clouds roll in, and before you know it the rain, lightning and thunder have begun. Before you even think to unplug your computer or television, your power cuts out, but when the lights come back on your television won’t turn back on.

A power surge occurs when there’s a sudden spike in electricity and it can damage or ruin your devices quickly. In many cases, the personal property coverage within your homeowners policy will pay for damage to your electronics if the power surge was caused by lightning. However, if the power surge was not caused by lightning, your electronic devices may not be covered.

Consider Residential Equipment Breakdown Coverage

Ask your Farm Bureau agent about the benefits of adding Residential Equipment Breakdown Coverage to your Farm Bureau Member’s Choice policy. For just a few dollars a month, it protects your home systems, electronics and appliances in the event of mechanical or electrical breakdown, artificially generated electric current and rupture, bursting, bulging, implosion or steam explosion.

Coverage You Can Count On

The last thing you want to worry about when the worst happens is the protection of your property. Your local Farm Bureau Financial Services agent will work with you to help protect everything from your home to your auto and the in-between.