Know Risk is a community education program designed by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) to improve our understanding of insurance and how it relates to managing the many risks we all face in life.
Portable insurance cover for your Christmas presents
Protecting your Christmas gadgets
Christmas is a merely days away and we really hope you clean up on the gift front this year. Sure chocolates and budget gifts are nice, but we know you’re probably a little more excited at the prospect of Santa delivering a new smartphone, tablet or laptop, or perhaps you were hoping Santa noticed that shiny piece of jewellery you’ve had your eye on and have been dropping less-than-subtle hints about.
Want to know what’s on our wish list? Well, we are hoping that you get every item on your wish list and then immediately start to consider whether or not you need to insure those items. We know; we are obviously very easy to shop for.
So, to ensure everyone has a merry Christmas, let’s have a look at the basics of portables (also known as personal effects) insurance, so that you can appropriately protect your Christmas gifts. Our gift to you is that portables cover is pretty easy to understand and there isn’t a whole lot to it.
What items are covered?
While policies vary among insurers, the following items are generally covered as part of a portables insurance policy:
- Mobile phones
- Tablets (the electronic ones, not the medical ones)
- Other jewellery
Some insurers may even cover you for clothing and sporting equipment, among other things.
Depending on the insurer, you might have to specifically list some individual portable items and they will come with a specified amount for which they are covered, while other items may be grouped together and will be covered for a blanket amount.
What situations are covered?
Most policies typically provide cover for portable items if they are lost/stolen or damaged somewhere in Australia, as well as providing cover for portable items that are lost/stolen or damaged overseas for a specified period of time — usually 35 days in one period of insurance.
What isn’t covered?
Again, policies vary between insurers, but generally, most policies won’t cover your items for general wear or tear, or flaws that aren’t present when the product is brand new. They also won’t cover some items if they are left unattended in a public place, are clearly visible through the windows of a vehicle or are left in an unlocked vehicle.
If your electronic device is lost or stolen and you have files on that electronic device, you can’t claim for the lost files. You also can’t claim for lost files if your electronic device is hacked or infiltrated with a virus.
Is there any other information of which I should take note?
We are glad you asked, because yes, we have some other things we’d like to point out, which may be pertinent when considering your portables insurance options:
- Some policies won’t cover you for accidental loss.
- Only some policies will cover your items for mechanical failure.
- Some policies will only replace your stolen items if you file a police report within 48 hours of the item being stolen.
- Some policies will only provide coverage for stolen items if you notify your insurer within a specified period of time — typically 14 days.
- What classifies as “damaged” will vary from policy to policy.
- If a lost or stolen item is a few years old, it’s extremely unlikely an insurer will replace it with a new one. So, if you’re hoping to claim for an iPhone 3S, you will likely only receive the current value of an iPhone 3S instead of having it replaced with an iPhone 6S.