If you missed Wallop of the Week on the Gadget Show, March 23, here are a few more details about gadget insurance I was talking about:
Option 1. I already have home contents insurance
Is gadget insurance a complete swizz? Not necessarily. But if you already have home contents insurance, you should check the details. There is a very strong possibility that your gadgets will already be covered, not just in the home, but also when you go travelling. In which case, it’s obviously a waste of time and money to buy separate gadget insurance. But do check the gadgets are covered not just for theft, but also for accidental damage – such as when you drop it and smash the screen.
Option 2: I have home contents but it does not cover gadgets
Again, don’t rush to buy separate gadget insurance. I asked uSwitch to find out how much it would cost to add gadgets to an existing basic home contents insurance policy, for a typical 3-bed flat. The extra gadget insurance was for a new iPhone 8, worth about £800 and a new Macbook Pro, worth about £1,500. As you can see, you’d have to fork out between £75 and £145 a year to add that to a basic home contents.
|Basic home contents (no gadget cover)||Annual premium||Extra for gadget insurance on top of basic|
That may seem a lot to cover just two bits of kit. But compare the price to specialist gadget insurance…
Option 3: I don’t have any home contents insurance, but I want to insure my gadgets
Well, this can be quite expensive. Again, I asked uSwitch to find out how much it would cost to cover the same iPhone and Macbook Pro.
|Specialist gadget insurance||Annual premium|
|Protect Your Bubble*||£269.76|
*items insured separately
So, in nearly all cases, specialist gadget insurance is more expensive than adding it to your existing home contents. Though, obviously, there are some people who just don’t have or don’t need home contents insurance, for whom separate gadget insurance might make sense.
The one advantage of specialist gadget insurance
There is one good reason you may want to take out specialist gadget insurance: the relatively low excess payments. This is the levy insurance companies make you pay when you make a claim. With home contents it tends to be £100. With specialist gadget insurance it ranges between £25 and £75.