If You Buy An iPhone, Buy Insurance

Today, the iPhone will burst onto the market, with fans of the phone standing in line (for the past couple of days, in some cases) in order to get one of the first ones.

All I can say is: if you buy this phone, get insurance. However, I don't mean the extended warranty. The iPhone is likely to be one of the hottest tickets on the pick-pocket circuit. The iPhone will likely beat out cell phones, iPods and other electronic gear as the item of choice to steal. So, make sure that your phone is covered by your insurance.

Now, most basic homeowners or renters insurance will cover your belongings, whether on your premises or at someone else's. The trick with expensive electronic gear is that you might just need a special endorsement on your policy to get full coverage. An endorsement actually names a particular item, and ensures that there is no dispute when it comes to your claim.

You might also want to check what level of coverage you have. Whatever coverage you have on your home's contents, you will also have on your iPhone. Most policies will not pay you the full cost of your belonging, but only a depreciated cost. That will be true, even with a brand new iPhone -- you can expect some level of depreciation to be claimed by the insurer.  

In most cases, you don't need endorsements for a single purchase, unless it's insurance for jewelry or expensive collectibles and art pieces. However, in the past few years there has been an increasing trend for insurers to question your ownership of an item unless you have evidence -- for instance, receipts for the purchase, or other documentation. An endorsement gives you an assurance of coverage, and in many cases, at no extra cost to you. (Do keep that receipt in any case; it can still come in handy when making a claim.)

So, if you are just arriving home from a successful iPhone buying trip, the first thing you should do is call your insurer.

Monique L. Attinger 

Posted by editor@insuranceguide101.com on July 1,2007 at 7:35 AM

While I heartily support the fact that you got insurance, I don't think you necessarily need to pay extra for it. I think a simple endorsement to your homeowners or renters insurance is cheaper (if not free in most cases) and will get you everything that you need.

There is one potential advantage to getting insurance from another provider: if you do have to make a claim, it's not a claim against your homeowners. Claims against your homeowners insurance can create problems if you have a "risk averse" insurer. I've actually heard of folks who were advised by brokers or agents NOT to make a claim, unless they wanted their insurance canceled on their next renewal.

Posted by Vivian Bech on June 30,2007 at 11:50 PM

Although AT&T is not offering the insurance for the iPhone, I must tell you that I got my iPhone insured through a company called Chit Chat Cellular.  I was standing in line outside an AT&T store, waiting for the iPhone, and some guys came over with a flyer advertising that they insured the iPhone.  After purchasing my phone, I went to the store to find out what this is all about and apparently it was all true.  They insured my iPhone.  They offer insurance through a third party called My Digital Leash.  They had two options for the insurance, one was a one year coverage for $69.95 and the other a two year coverage for $99.95.  You just can't beat it.  I immediately purchased my insurance.. hell, I paid $600 for my phone, I though it a smart idea to insure it.  The store I purchased the insurance from is apparentlyy the only store that is insuring the iPhone and they were located on 152 st and US1 in Miami.  Their phone # for anyone who is interested is (305) 234-8899.

Don't let AT&T or Apple keep you from insuring your very expensive phone. Insure it NOW, I did!!

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