| Topic - Personal Computer Insurance | Education Center |
Do you own a personal computer? Protect your investment with the proper insurance.
A growing number of people are purchasing personal computers. For many, this is a major investment trailing only behind buying a home and car in terms of expense. It is important to know how to insure your computer, says the Insurance Information Institute (I.I.I.). Coverage for computers and related accessories such as software and modems can vary from company to company, so it is very important to call your insurance professional for guidance.
Coverage Under a Homeowners or Renters Policy
If you have a homeowners or renters policy, your personal computer
would be covered, in the home, against all of the basic disasters
listed in the policy. So, if your computer is stolen or destroyed in a
fire, you would be covered.
Some companies, however, have dollar limits for electronic equipment. This means your computer; printer and related items would be covered only for the amount (usually $5,000) listed in your policy. If you need additional coverage, you can usually raise the dollar amount by paying a little more premium.
Replacement Cost Versus Actual Cash Value
Consider getting a replacement cost rather than an actual cash value
policy for your personal belongings. Replacement cost insurance would
reimburse you for the current cost of your computer and other personal
possessions, while an actual cash value policy would pay the
depreciated cost. Replacement cost insurance is approximately 10
percent more expensive than an actual cash value policy, but since
most items depreciate quickly this can be a very smart investment.
Coverage for Your Computer Away from Home
If you plan to regularly take your laptop or portable computer out of
your home, find out how much coverage you have on your homeowners or
renters policy for your personal possessions away from home. Some
insurers offer complete coverage for possessions away from home. Other
companies have a dollar limit for personal possessions that are stolen
away from home. In most instances it would be 10 percent of your
personal possessions coverage. This means that if you have $40,000
worth of coverage for your personal belongings, you would have $4,000
worth of theft protection away from home.
Floaters
Consider getting a floater on your homeowners or renters policy, for
your portable computer. This policy would cover your computer for its
full value anywhere in the world on an all-risk basis.
Get a special computer policy
There are a number of companies that offer individual insurance
policies for computers. They have a number of different insurance
plans and you would not need an underlying homeowners/renters policy.
When you purchase a computer, it is very important to keep the receipt. Also, remember to keep receipts for related items such as CD ROMs, software, additional memory and other items computer aficionado's buy over time. This information should be kept in a safe place, along with your inventory of personal items and insurance papers.