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Cell phone insurance

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What about insuring my goods when I move or putting them in storage?

When you buy a cell phone on credit, in terms of a rental contract there is very often an insurance aspect involved. In some cases a monthly insurance premium is included in the rental instalment and it is not always clear whether the insurance is a voluntary addition to the rental payable or has to be taken out in terms of the contract anyway.

Whatever the position, if you have to or you choose to take out the insurance cover you should insist, and you are legally entitled, to be given a complete copy of the Insurance policy and to be informed of the full name and address of the insurance company which underwrites the policy and of any intermediary who is in fact authorised to deal with you, issue the policy and receive the premium.

Having received a copy of the policy and found out who the insurer is, you need to study its provisions very carefully indeed because many of these policies give a very limited protection and contain a number of exclusions, for example:-

  1. if the cell phone is stolen from your car, there will be no cover unless it was kept in a locked cubbyhole or in a locked boot.
  2. there will be no cover unless at the time of the loss the cell phone was being carried on your person.
  3. there will be no cover if the circumstance of the loss show that you "failed to take proper care of the instrument".
  4. there will be no cover unless the theft is immediately reported to the police.

The above are only examples of the exclusions you may find. After studying the policy and if you have any choice, you may well feel that the premium you are paying is for very limited cover. It can well be worth your while to contact your own broker or insurer to find you a better deal if they can, or possibly include the cell phone as a specified item on your house-contents policy.