Know About All-Risk Electronic Equipment Insurance

Posted on: Mar 20, 2023 | | Written by: HDFC ERGO Team

Know About All-Risk Electronic Equipment Insurance

Published on March 20, 2023. EST READ TIME: 3 minutes

It can be a bit challenging to contemplate times without electronic devices. Almost all houses and businesses these days have enough electronic devices housed inside them. And any damage to these can impact businesses or even day to day functioning of a house. To ensure that your electronics have adequate coverage, a home insurance plan is preferable. There are a few other reasons why one must think of insuring electronics. In general, electronics do cost a lot of money and are quite portable. Though both these features make them quite useful, they are also susceptible to theft and burglary. The last thing that you would want is for an expensive electronic item to be stolen, and you have to repurchase it. They are also subject to accidents and mishaps. Thus, arises a need to secure these devices. Electronic equipment insurance can cater to all such needs if you have a lot of electronics at home.

What is electronic equipment insurance?

As the name might give away a bit, electronic equipment insurance is a policy that offers coverage for all the electronics at your home. In the event of any theft or damages, the policy will cover all the charges. Since electronics are expensive, any damage or theft can easily burn a hole in your budget. By investing in electronic equipment insurance, you can prevent that hole from forming.

Types of electronic equipment insurance

There are three types of electronic equipment insurance policies that you can choose from.

1. External data media

This type of policy covers data loss on external devices such as hard drives, cassettes, discs, and magnetic drives.

2. All risks

This policy type covers damages related to natural and man-made perils. Natural calamities usually cover damages due to landslides, storms, fires, cyclones, etc. On the other hand, man-made risks cover damages related to riots, strikes, vandalism, theft, etc.

3. Increase the cost of working

This policy type is ideal when you have to rely on substituted data processing units since the primary ones are damaged. If the insured equipment is damaged or lost, and you end up using alternate options for the electronics, the policy will cover charges related to them.

Understanding all risks for electronic equipment

When you choose electronics equipment insurance, you will get access to the following benefits.

1. Get coverage against theft and burglary for all electronics at home.

2. You can claim your policy quite easily and some insurance providers even offer 24/7 service for claims.

3. The policy offers coverage against a wide range of perils for electronics, such as floods, earthquakes, lightning, etc.

4. The policy ensures complete peace of mind as far as all the electronics in the house are concerned.

Alternatively, you can buy a home insurance plan to safeguard all things at home.

What are the policy inclusions?

Following are the different conditions where the policy offers coverage for all the important electronics at home, such as laptops, tablets, iPads, computers, etc.

1. Loss of data

The plan offers coverage for loss of data on external devices such as discs, hard drives, tapes, etc. which can be due to accidental reasons.

2. Restoration of data

The cost that is incurred to recover data that is lost due to accidents is also covered as a part of the policy.

3. Damage due to fire

Fire is a common peril at home, which can leave behind a lot of damage. The plan includes damages that are caused due to natural calamities such as rock slides, landslides, cyclones, fires, lightning, etc.

4. Cost of replacement

Should you end up replacing some of the electronic devices due to the damages caused, the policy will compensate you for the same.

5. Electrical or mechanical breakdown

The plan also covers any damages to electronic devices either due to mechanical or electrical breakdowns.

6. Cost of repair

The plan also covers expenses related to the repair and fitting of parts of the electronic devices, if they are damaged but can be repaired. Though some homeowners insurance plans offer coverage for electronics, the coverage is not exhaustive and might not cover all the devices at home. For people with expensive electronic devices at home, buying electronic equipment insurance in conjunction with homeowners insurance is highly recommended.

What are the policy exclusions?

Here are the conditions where the insurance provider might not honour your policy claim.

1. Loss of earnings

The policy will not cover any loss of earnings, either direct or indirect, due to damaged electronic devices at home.

2. Removal of debris

The policy will not cover expenses related to the removal of debris after an accident.

3. Loss of rent

If there is a loss of property rent due to an accident, or natural calamity, the policy will not cover those.

4. Consultation fees

Any sort of consulting fees for architects, engineers, or surveyors are not covered if they exceed 3% of the sum insured by the policy.

5. Deductibles

If the policy mentions deductibles, you must pay every time that you file for a claim. The insurance provider will not cover deductibles.

6. Other expenses

If you have to move to a temporary accommodation due to the accident, the policy will not cover expenses related to the shift or rent.

7. Lapsed Policy

Should a policyholder fail to renew the policy on time and it gets lapse, the insurance provider will not honour any claims during this period.

8. Existing defects

For any of the existing defects while purchasing the policy, the insurance provider will not offer any coverage.

9. Consequential loss

The policy does not cover any consequential losses or any form of legal liability.

Key things to know about portable electronics equipment policy:

Before you purchase an electronics equipment policy, it is pertinent that you are aware of the following. It will help you decide better.

1. It is critical to note down the serial number or identification of the different electronic equipment that you want to insure in the policy.

2. In case of theft or burglary, you need to inform the police about the incident.

3. You must inform the insurance provider in writing about any change of the insured equipment.

4. For damaged electronic equipment, it is essential that you preserve the damaged parts so that they can be analysed during the investigation.

For people who do not have many electronic devices at home, simple property insurance might suffice. However, for expensive electronics, opting for an individual policy can turn out to be a better decision.

Conclusion

Electronic equipment is getting more expensive by the day. And any damage to these devices can be a big setback to the finances of a homeowner. Buying electronic equipment insurance is an easier alternative. The plan will safeguard all the expensive devices at home without many hassles. Alternatively, you can opt for property insurance if you do not have expensive electronic equipment at home.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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