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Is Your Computer Really Covered?


You got the extended warranty and even checked with your homeowners insurance agent to make sure your new computer is covered. So, your safe now from whatever mishaps that may happen to your computer, right? Maybe not.

Now that laptops and computers are such a necessity for many, it is important to make sure they are adequately covered in case of any accidents or complete destruction. Do you really know how much protection you have?

Common ways to protect computers and laptops are:

  • Manufacturer's Warranties: Generally cover defective parts and hardware from the manufacturer, not accidents you may cause.

  • Extended Warranties: Better choice. You can purchase an extended warranty through the manufacturer or sometimes the company you purchase the computer through. Besides covering defective parts and hardware, extended warranties may also cover power surges, water spills and breakage.

  • Your Employer: If you use an employer's computer then it should be insured through your employer and you should not have to worry about additional insurance...but check with your employer to make sure.

  • Homeowners/Renter's Policies: If you have a homeowners or renter's policy you probably have some protection but depending on your system it may not be enough. Things to ask your agent: What accidents are covered? Do I have ACV or replacement coverage (replacement is better)? What is my deductible? Can I obtain extra coverage for my computer?

  • Specialized Computer Insurance: There are companies that sell insurance specifically for computers and laptops. Before purchasing an extra policy through a company, make sure you are not already covered by any of the other areas mentioned above. Sometimes people think that if they have extra polices they get to use all of them if something happens, which is not true. So if you are paying extra for the same coverage elsewhere, you are just paying more for nothing. Another point to remember is that the policies from companies can vary widely so make sure you know what you are buying.

    So what is typically not covered by any of the protections above? Even the best insurance does not cover every singe thing. Here are some common things that are usually not covered by any type of warranty or insurance:

  • Pest damage
  • Corrosion or Rust
  • General wear and tear
  • Environmental Elements (dust, dampness, cold, heat)
  • Intentional damage (you get mad and throw it across the room)
  • Illegal acts
  • Data Recovery (all your files and stuff you should be backing up!)
  • Re-installing programs
  • Equipment you are selling or leasing to others
  • War
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