Computer Insurance

When buying a computer it is normal practice to be offered insurance at the point of sale to protect your new purchase. It is now well known that personal computer retailers make a considerable additional profit from customers who believe they are being offered a cheap price. On average electrical retailers are known to charge their customers three to four times more than necessary.

Why Buy Computer Insurance?

Laptops and desktop computers are becoming an increasingly important commodity. For the opportunist thief, your computer is as good as ready money and it is one of the first things to go. This is all too common in business environments, public sector buildings, and now households as well. If you are a consultant who travels with a laptop to business meetings, there is a high risk of your laptop being stolen. Currently, 70,000 computers are stolen each year in the UK, and more than 100,000 are accidentally damaged.

Traditionally, house contents insurance would cover some additional items up to an upper value limit, the items being specified by the owner of the policy. In these circumstances if you have to make a claim, you may be penalised in a number of ways.

1. Many insurance companies' upper limits are not very high and would not cover the cost of a new computer. Unfortunately computers depreciate quickly and a computer that cost £2,000 when new, might not be worth more than £500 after only a year. Your contents policy would only pay the present value of the computer.
2. If you make a claim on your contents insurance, your total renewal premium will be significantly higher. This is because the premium is based on the entire contents of your house and not just the item you claimed for.
3. Many house contents policies will not provide cover if you remove the computer from your house or the office. If you use a laptop and travel to business meetings you are taking an unnecessary risk.

Key Features of Computer Insurance:

• 'All Risks' cover worldwide.
• No excess.
• Rapid claims response, with authorisation guaranteed in ordinary circumstances, within 24 hours or less.
• No additional security arrangements required.
• Simple premium calculation based on the value of your equipment.
• All hardware including printers and scanners also covered.
• Minimal exclusions.

What is not Covered by Computer Insurance?

As with all technical equipment, computer insurance does not provide cover for items such as:

• Maintenance costs.
• Electrical or mechanical failure.
• Wear and tear.
• Fraud and dishonesty.
• Consequential loss. Loss or damage caused by sonic bangs is not covered but may be covered under any warranty/extended warranty you may have.