Computer Insurance – A General Overview
Computer Insurance: Why it’s Necessary
If you are a business person or student who uses a computer at work or in the home quite extensively, then you might want to consider computer insurance coverage. A computer, after all, for many people is a major investment next to their home and auto. So, computer insurance can protect this important piece of equipment in case it is damaged or stolen or another unanticipated event occurs. Computer insurance can cover loss or damage due to a crash, peripheral malfunctioning, corruption of data, or a virus. Protection also covers events such as vandalism or theft.
Laptops: Personal Possessions outside the Home
Your computer is now probably covered under your renter’s or homeowner’s policy as it is a part of the assets in your home. Therefore, it would be protected from any specific threats that are listed in the policy, such as flood, fire, or windstorm damage. Nevertheless, laptops are also deemed as personal possessions outside the home, so it can be advantageous to provide computer coverage as well.
Defining Replacement Cost versus Actual Cash Value
For ultimate protection, make sure you pick a policy that covers the replacement cost versus the actual cash value of the items you insure. Actual cash value refers to the value of an item minus depreciation while replacement cost indemnifies the policyholder for the value of an item without making the deduction for depreciation.
What Computer Insurance Does not Cover
One point to remember – computer insurance does not extend to covering such items as maintenance, mechanical breakdown, normal wear and tear, electrical malfunctions, fraud, damage from sonic bangs, or indirect loss.
Types of Plans
Computer insurance can generally be purchased for one to three years without a deductible or in deductibles of $50 to $100. If you choose a policy with a deductible, you will pay the amount of the deductible out of the replacement cost for your coverage should you need to file a claim.
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