Mobile phone insurance cover

Mobile phones are a must have item for most people whether for business or the home. Since there are so many new luxury mobile phones bought every year, it is important we do not loose them. Mobile phones can get damaged, lost, dropped in water or stolen.

Importantly, those who have contract phones who loose their phones will have to replace the phone from their own funds if it is not insured. The phone provider will take out a monthly contract amount from your bank account. Network providers give a free handset if you take-up a contract with them. However, since these handsets are expensive, if you loose the handset you will be personally liable and will have to pay for a replacement handset. So the handsets are not really free. You will need to take up insurance. Check the insurance policy terms particularly the exclusions and see whether it meets your personal circumstances.

Most handsets are:

-Dropped in water.

-Go around in the washing machine.

-Take a tumble on to concrete or hard surfaces.

The simplest form of insurance for your phone is to add it to home contents insurance policy but you need to check:

-That it includes cover away from your home.

-It covers for such events as accidental damage, theft and loss.

-What the excess is?

-When the phone will be replaced after filing a successful claim.

-Whether it will the same model and specification.

-Whether you will receive a cheque or a replacement phone.

-The replacement of the SIM card.

-Charges because of fraudulent calls.

-Whether the insurance included extended warranties.

Fraudulent claims are increasing all the time and the police are aware of this. Just losing your phone and not remembering where you left it may not be a good reason for a loss and may annul your claim. Real forceable theft has to occur before the insurance company may pay out. Make sure that your insurance policy covers for loss.

RISK: If you loose you mobile and if you are on a contract you will still have to pay for the monthly contract and replace the handset at your own cost. If you have a short time left before the expiry of your contract it may not be worth claiming.

Phone shops may ask you to enter an insurance contract when you buy a mobile phone but you my delay this and look elsewhere for a better policy. Do some research before buying your phone or contract and know exactly where it can be insured. Take this insurance out immediately if it meets your personal circumstances.

Here is a list of things to check:

-The insurance has worldwide cover.

-The insurance has delivery costs included.

-What the period from new should be before it can be covered.

-Make certain the insurance company replaces your phone with the same model and specification.

-The network provider will replace you SIM card.

-The insurance provider is Financial Services Authority regulated.

-Read through all the exclusions and inclusions.

-That unattended theft can be covered.

-Whether there is a no-claims bonus.

Normal exclusions may be:

-Leaving the mobile phone unattended in public.

-Wear and tear.

-Failure of the network service.

-Failure to leave it in the car boot.

-Failure to leave in the glove compartment.

-Excess amount.

Notification when stolen:

-1. Block your phone by calling your provider urgently or 08701 123 123.

-2. Get a loss or crime number within 24 hours from the police - call the local police station and not 999.

-3. Tell your insurance company the crime number.

What does the insurance quote depend upon?

-Price of the mobile.

-Need for multiple cover.

-Annual insurance discount applicable.

-Unauthorised calls cover and it’s time limit.

-Period needed for use of mobile abroad - 30/60/90days.

-Limit of the excess.

-Which phones are not covered.

-Full replacement value at the original purchase date.

-Deductions for administration costs.

-No 12 month contract.

-Cover for pay as you go.

Cover may include:

-Accidental damage.

-International cover.

-Theft.

-Loss.

-Liquid/water damage.

-Extended warranty.

-Fraudulent call cover.

-Quick processing of claim.

Home contents insurance companies can take many weeks before compensating for you phone or replacing it. This assumes that you have enough home contents insurance cover in the first place. You may get a similar model and there will be excess to pay. Your home contents insurance premium will go up if you make a claim. The home contents insurance claim procedure may be quite extensive. Also, fraudulent calls will not be covered under the home contents policy.

Some insurance companies may give an old phone of equivalent specification and not like for like replacement. The mobile phone accessories may not be covered by the insurance company. If you loose your phone abroad, the most likely situation is that it will be replaced when you have returned home.

There may be occasions when your insurance provider may not cover you if:

-There has been a unforced theft.

-There has been a loss only.

-There has been damage while away from your home or business.

There may a mobile phone purchased age limit below which the mobile phone cannot be insured. Make sure the insurance covers all those who live at the same address.

For expensive phones it may be worth insuring the phone with your contract supplier and setting a maximum credit limit beyond which calls will be barred unless topped up. If you normally do not call internationally ask your phone provider to bar calls being made abroad.

TIPS:

-Backup your phone data at least once a month. Backup to your PC, to your network provider or specialist upload sites. Some insurance companies provide a free backup service, while others charge.

-When upgrading to a new phone let your insurance company know or else there will be no cover.

-Check that your home contents insurance company covers for use of your mobile away from your home.

-Keep your phone with you and do not leave it in the restaurant or pub or club in a public place even if a friend or relative is looking after it.

-If your phone is stolen contact your provider within 48 hours or you will be liable for fraudulent calls. After the call you will not be liable for any calls made by the thief.

-Do not use your mobile while driving as this creates a significant hazard to you and the public. Currently, there is a £60 fine and 3 points on you driving licence.

-Those convicted of using a hand-held mobile phone while driving may see their car insurance rise.

-Read your Employer’s conditions on the use of the company handset or your personal handsets.

-When taking up insurance, ensure that you exclude for anybody to contact you regarding selling you any add-on services.

-Do not give your phone to those you cannot trust and complete strangers.

-At night-time the phone becomes a beacon for everybody to see, so use it with caution.

-Make a note of your IMEI number by pressing #06# on your handset.

-Taking while walking is not a good idea.

-Keep the ringer to silent when away from your normal area of working.

-Set the phone to lock and open with a pin code when required.

Lastly, Report your phone stolen using 08701 123 123 which applies to all UK network providers.