Computer Insurance Tips

With more and more people spending more and more money on laptops and desktop computers, they are now considered a significant enough investment to warrant their own cover.

Some people leave protection of their computer to their extended warranties, but there are important differences between this and computer insurance. Whereas extended warranties cover faulty equipment and parts, computer insurance offers protection against externally caused losses. These might include fire, theft, power surges, or accidental damage such as spillages on the computer, or impact damage from dropping laptops.

A better option might be to cover your computer under your home insurance policy. Many homeowners and renters insurance policies have some type of coverage for computers in the event of the disasters outlined in the policy. Many insurance companies, however, have limits to how much can be recovered in the case of a claim. Look carefully at these limits and compare to the expenses of your computer (or computers if you have more than one) and all related accessories such as printer, scanner, etc. Furthermore, laptop computers may need additional coverage, or an all together separate policy in case the computer is damaged or stolen outside of the home or residence.

If these issues make a separate computer insurance policy more attractive, here are some things to consider:

• Is the policy for replacement or cash value? Cash value is usually not the best option due to how computers depreciate very quickly. Replacement coverage can cost 10 to 15 percent more, but will insure you will get back the system you need.
• Does the policy include data recovery?
• Does the policy cover the loss of business income while computers are being replaced or data being recovered?
• Will the policy cover any upgrades you may make to the computer?
• What is the deductible?
• Always keep receipts and show them to whoever you choose coverage with.
• Do you use your computer for business? Special policies may be needed to insure the full replacement costs are covered.