Mobile phone insurance might seem silly to most people. We live in a throwaway culture where any item under $1000 is replaced without giving a single thought. But someone who has lost their phone just within a few days of purchasing will know why it is so important to have your home contents insurance cover mobile phones too.
Losing your new phone hurts a lot. Especially, when you still have to pay EMIs for the next six months or a year. Imagine paying for something that you don’t even own anymore. No one wants to be in such an infuriating situation. This is why most people want their home contents insurance to also cover stuff like mobile phones.
What is home contents insurance and what does it usually cover?
Home contents insurance provides cover for the items that are inside your home. Damage to the household items due to a natural calamity, theft, or vandalism is usually a good reason to claim your insurance from your home content insurance company.
For people staying in a rented home, the renter’s insurance policy includes home content coverage under it. Renter’s insurance can either be purchased by the landlord or the tenant. This depends on the terms and conditions the two parties agree upon before signing the home agreement documents.
Now the most important question. What does a home contents insurance cover? A home content insurance covers the valuable items in your house like furniture, electronic(including your mobile phone), jewelry, pets, livestock, ammunitions, etc. So basically every item in your home that is subjected to damage during an untimely event.
What if a guest/roommate/family member loses or damages their mobile phone in my property? Will the home contents insurance cover them too?
A home contents insurance only covers people who live the house and are listed in the policy. For instance, if you are a married person, it is obvious that you will list your spouse and children’s names in the policy but a guest or a roommate living temporarily in your home won’t be able to reap the benefits of your home contents insurance.
If a friend or a distant relative wants to stay in your home for a long term and also desires to get their mobile phone insured, you will have to contact your home insurance/renter’s insurance company and get them on the policies list. Your monthly premiums will get affected, as there is one more member the insurance company has to take care of, now.
Home contents insurance cover is usually up to a certain fixed amount. For basic household items like TV, air conditioner, furniture, etc a fixed amount is set by the insurance company and losses beyond that amount won’t be covered.
For a mobile phone, the fixed coverage is more than enough unless you are planning to buy iPhone Princess Plus which costs roughly $176,400. In this case, you will have to purchase insurance for the actual contents of your home by submitting a list of the expensive items you posses.