Mobile phone insurance

If you have home and contents cover, or even a contents only policy, your mobile phone will be covered while it’s inside your house. If you need coverage when you’re outside your home, portable contents insurance can cover objects such as your phone, laptop, engagement ring and other personal effects. This cover can be purchased as an optional extra for an additional premium.

While ‘mobile phone insurance’ isn’t a specific product you can buy, whether you need coverage for your mobile phone is up to you. However, for most Australians, mobile phones are essential and used for everything from keeping in contact with friends to taking photos and managing appointments. If you choose not get cover, you may have to pay for the cost of replacing or repairing you phone if it is lost, stolen or damaged. If you own a particularly expensive model (e.g. the latest Samsung or iPhone), it could set you back thousands of dollars.

However, if you have an old or relatively cheap mobile, you should also consider your policy excess before taking out cover. If you have a high excess (e.g. $750), it may be higher than the replacement cost of your phone. In this case, getting insurance for your phone may not be worth it.

If you have a warranty from your phone provider, you may be covered for manufacturing defects, but not for loss, theft or accidental damage.

If your portable contents policy covers travelling internationally, then you will be covered at no extra cost. However, you may only be covered for a set number of consecutive days (e.g. 120). You may want to compare mobile phone insurance cover for Australia and for international trips.

Another way to get cover for your smartphone while overseas is to purchase a travel insurance policy that covers lost, stolen or damaged belongings.

If you have an old or refurbished phone, you may still be covered under your existing home and contents policy. However, if you purchase a policy after your phone has been damaged and then try to claim, you won’t be covered. Insurance for your smartphone only covers unexpected damage that occurs after you purchase your policy, and not before.

Firstly, check whether your phone is still under warranty and if the issue can be covered. This way you won’t have to pay an excess to have it repaired or get a new phone as a replacement.

If it’s not covered by a warranty and you need to make an insurance claim, you may need to submit proof of purchase (e.g. receipts). Other supporting documents, such as a police report if your mobile device was stolen or photos of damage to the device, can help support your claim.

Depending on your insurer, you will either receive a cash amount paid into your bank account if you’re claim’s approved, or a replacement device. Your insurer may not offer both options, so when comparing policies, search for insurers that offer your preferred reimbursement method.

If you have a contents insurance policy with optional portable effects cover, you may be covered for a range of unforeseen events that may mean your phone to needs repairs or replacement. Depending on your insurer, you may be covered for:

• Malicious damage
• Mechanical failure
• Theft
• Natural disaster damage.

Accidental damage cover (such as if you drop your phone in the toilet) may not be covered by all contents policies but may need to be purchased as an optional extra, depending on your insurer.

Before choosing a policy read the relevant Product Disclosure Statement (PDS) to understand the benefits included. Read the Target Market Determination (TMD) to check whether the policy suits your circumstances.

Like with all policies, there are exclusions that can impact your ability to claim. For your phone, you may not be covered for the following:

• Theft due to negligence. For example, if you leave your phone unattended at a table at a café while you go to the bathroom and it’s stolen, you likely won’t be covered.
• Wear and tear. As your insurance plan only covers unexpected events, general wear and tear (such as a decreasing battery life) won’t be covered.
• Loss of data. If your phone is hacked or the data is corrupted in another way, you won’t be covered for the cost of restoring, recovering or replacing the data.

Additional exclusions as well as limits and sub-limits will apply to your policy. Read the PDS to understand the full details of your policy.

If you use your phone for business, your home and contents insurance may not cover claims for your smartphone. Instead, you may need to purchase business insurance to get cover for your phone, laptop or other office equipment you use for your business.