Thursday, October 13, 2005
More Bang for Your Buck: Gadget Insurance
Cell phones, i-pods, laptops. Our lives are constantly becoming more portable and more technical. But if you've ever lost or broken a gadget, you know it can be unnerving. That's why in tonight's More Bang for the Buck, we're going to show you a new way to protect these so called vital possessions.
WSVN--Believe or not - over thirty years ago this was the first cellphone. Today, nearly all gadgets are tiny, trendy and very tough to live without. Just ask Brandon Rotbart.
Brandon Rotbart - "My phone broke about a week ago and I was without a phone for about 3 days and it was miserable."
And the cellphone isn't the only expensive device Brandon worries about. He also has a laptop, a camera and a palm pilot.
Brandon Rotbart: "I'm concerned about losing them. Obviously, some are more valuable then others."
Now, in the past, if you lost something valuable, your options were buy a new one...Or find your old one. But today, there's a third choice. You might consider buying insurance just to cover your small gadgets.
Chris Ball: "Now adays it seems like everyone has a cell phone or a PDA and laptops are getting more prevalent so we are seeing some interest people having them insured under their insurance policies."
Chris Ball of N-Source insurance says many companies offer something called a personal property rider. Tag it onto your homeowners policy, and it covers you in case of theft, loss or accidental damage.
Chris Ball: "It comes down to what is your deductible versus then what it is the value of the item above that. It is an economical decision."
The cost varies, but on average it runs three to five dollars a month for things like an i-pod or a cellphone.
Chris Ball: "I think for the run of mill it is probably peace of mind for somebody's that got more expensive equipment. It's just protecting their financial investment and what ever they aquire."
But before you buy, it's important to look at the terms of the policy to decide whether it's a good deal. Also make sure to ask about a deductible, a limit on the number of claims in a year, and how your item will be replaced.
Chris Ball: "They'll repair or replace it with like kind of quality or give you a new one that is out on production already and that stuff changes so rapidly by the time they sell it to you it might be obsolete."
Brandon doesn't want to live without his cellphone again. He now knows he better be careful or he better have good coverage.
Brandon Rotbart: "Make sure you get new replacements. Make sure you get replacements that are equalite to your equipment and make sure you don't pay too much for the deductible or the service."
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