One of the most popular tech toys continues to be an Apple iPad with many people wanting one for work and play. With so much popularity for an expensive product it is no wonder that thieves target this item. An iPad is small, light, and valuable which is what makes it an easy target for those who don't want to pay for one. If you have renters or homeowners insurance you do have protection against theft but will it cover an iPad?
The right policy coverage
Most homeowners insurance policies will cover electronic equipment under the personal property coverage of the policy but there are two important factors to consider:
- How much is your deductible for theft losses?
- How much will your insurance increase if you file a theft claim?
Once you know the answer to these questions you will be able to make a decision as to whether you should file a claim. In many cases it will not make sense to file this type of claim and I'll explain why.
How much is your deductible for theft losses?
On a standard homeowner's insurance policy there is a deductible for all losses such as $500 or $1000. Some policies will have a different deductible for wind and hail but this is usually the case in states that see a lot of damage from such losses. Let's assume your policy has a $500 deductible for all losses including theft. In order for a claim to pay out the value of the item must be greater than your deductible. With the starting price of a baseline iPad approximately $500 it may not make sense to file a claim unless you purchased an upgraded model. The next thing to consider is if your iPad is worth more than the deductible will it increase your premiums over time.
How much will home insurance increase if you file a theft claim?
Theft claims are one of the most filed losses for homeowners and tend to be the hardest for insurance companies to prove. That being said most insurance carriers will surcharge your policy on renewal after the theft claim was submitted. It is important to know how much your policy will increase after such a claim. In most cases it is normal for policies to increase 10-25% for filing a theft loss. Ask your insurance agent or company how much your policy could go up if you have a claim.
So in the event your iPad is stolen it may not make sense to file a claim. Knowing how much your deductible is for theft and how much your premium will increase are the two most important factors. If you end up filing a claim for a $700 iPad and your deductible is $500 then you would save $200 by filing the claim, but if the company surcharges your policy for the next three years it could cost more to file the claim then what you originally lost. This is a lesson most consumers don't understand so hopefully we have shed some light on it. The idea of insurance is to cover the big losses and that is why a theft claim of less than $1000 usually doesn't make sense.