Personal Property Riders for Computers

Over the years, the cost of purchasing a computer has decreased significantly. Yet, while you can still purchase a modest laptop for under $500, price tags still vary widely, with some over $1,000. Additionally, due to recent developments in the accessibility of the Internet, many individuals own more than one type of computer – perhaps a laptop or desktop, plus a tablet or e-reader.
If you own multiple devices, your computers turn into a major investment. While your homeowners’ insurance policy would cover some of the costs in the event of an accident, limits are imposed regarding the amount and types of damage covered. Additionally, if the computer is not strictly for personal use or if it’s damaged in travel, your homeowners’ policy might exclude it altogether.
Taking these points into account, you may want to consider adding scheduled personal property to your homeowners’ insurance to cover the costs and broaden your coverage. What should you know?
What’s Covered
Scheduled personal property is a rider to your existing coverage, there to assist with repairs and replacements for a greater range of situations, including:

1. In travel
2. Damage from fire, windstorms, water and some natural disasters
3. Accidents

In some instances, your policy may also cover the cost to repair a cracked screen.
However, a rider likely won’t reimburse you for:

1. Wear and tear
2. Mechanical breakdown
3. Faulty construction – an issue with refurbished models
4. Intentional damage

If your policy covers your devices, you may be reimbursed for:

• Actual Cash Value: The amount you would get for the computer or tablet if you sold it today. This cost takes depreciation into account, which could be significant if your computer is at least two years old.
• Reimbursement Cost: The amount it would cost to replace the computer with one of the same kind. Essentially, this assists in purchasing a brand new device.

Managing Your Policy
Similar to other investments, computers and other digital devices regularly change in value as new versions are released. However, unlike jewelry or musical instruments, the changes are more frequent and the user often upgrades devices at a similar rate.
Always keep an inventory of what you currently own, its operating system and its cost. Also make sure to update your agent any time you make an adjustment.
When you own multiple computers and electronic devices, consider insuring them with a rider to your renters or homeowners’ policy. To learn more, give us a call today at 203.439.2815.