Approximately 600,000 cell phones are lost or stolen every year. This doesn't even include phones that are damaged in some way. Devices can cost $500 or more, so paying out of pocket for one can be a huge burden on anyone to replace. What if I told you that you could replace it under your homeowners insurance? Well, there is a way! Here's how to do it.
Call your agent or provider.
The first thing you'll need to do is call your agent or insurance provider as soon as possible. See if they cover cell phones, what they cover, and if you can get coverage for being "off premises." This means that if your device is stolen while you're not at home, you're still covered. Adding this is sometimes referred to as a rider or floater provision. These usually have no deductible, but ask if there is one to be sure.
You should be sure there is no deductible because some home insurance deductibles far outweigh the cost of a device. They can range anywhere from $250 to $2,500.
Ask what is covered.
While homeowners insurance can cover your cell phone, it may not cover certain scenarios. Generally, it will cover you if your phone is stolen or lost. However, some companies may not cover mechanical damage or operational failures. Rider provisions will have specific exclusions you need to be aware of.
Weigh the pros and cons.
Before calling your provider, be sure you want to make the claim. As said before, deductibles can be high, but that isn't all. Making a claim on your homeowner’s insurance can raise the cost of your overall insurance. Weigh whether it is more financially beneficial to make the claim or buy a phone out of pocket. Most people will suggest you avoid making a claim through your homeowners insurance unless absolutely necessary. Chances are, your rates will substantially increase after you've renewed your insurance due to a claim.
It may not be worth it.
If you need to make a claim on your phone, it's understandable. If you already have homeowners or renters insurance, adding your phone may not increase the price. You'll have extra peace of mind and coverage in the event of a loss. You can add it and decide whether or not to make the claim at that time. Maybe it's essential you replace your phone immediately, or maybe you can wait and shop around.
In general, most people will probably suggest you just buy a phone insurance plan instead. It's much less complicated and deductibles may be cheaper based on the value of your phone. Plus, those monthly rates are less likely to substantially increase. Not to mention, it will cover mechanical or operational damage. Making claims through insurance companies can increase the likelihood of being dropped for coverage, but cell phone providers generally provide you with insurance as long as you're with the company.
