Gadget insurance covers mobile phones, laptops, iPads, cameras, and other portable electronic devices if they are damaged, stolen or lost. Mobile devices are now so much a part of our lives that it makes sense to insure them for theft and loss.

What is gadget insurance?

Gadget insurance covers you if your mobile phone, laptop, camera or other small electronic device is lost, damaged or stolen, whether this happens in your own home, on a trip out, or on holiday. There are different levels of gadget insurance cover depend on what you need.

Most of us will have at least £1,000 worth of gadgets in our homes. That could be costly if your mobile devices needed to be replaced.

What does gadget insurance cover?

Different insurers will provide different levels of gadget insurance cover, and some allow you to add extra insurance on to basic cover. There are a number of different types of insurance cover. These are:

Theft: If your device is still from your home, while you are out and about, or when you are on holiday.

Accidental damage: If you drop your device and crack the screen, or drop it in water and it stops working.

Unauthorised calls: If your mobile phone is stolen and used fraudulently by the thief who racks up a hefty phone bill, some policies will cover you for the costs incurred when the phone was not in your possession.

What does gadget insurance not cover?

Gadget insurance does not cover all types of loss or breakdown.

Theft: If your device is stolen from your home you may need to prove forced entry to your premises. If you lose your phone when you are out - for example you leave it in a restaurant - you may not be covered either.

Mechanical fault: If your device stops working and it is still within the manufacturer's warranty period then your insurer will advise you to have it fixed by the manufacture rather than claiming on your insurance policy.

Older models: The older your gadget, the more difficult it may be to insure it. Also, check the policy wording regarding replacements - do you get a new for old item, or do you get the value of the item that was stolen or damaged? There may be a big difference between the two as technology advances so quickly.

Does gadget insurance cover me on holiday?

That depends on the terms of your insurance policy. Many of us bring expensive gadgets on holiday, whether it’s a mobile phone to keep in touch with people back home, a camera to capture special moments, or a tablet to keep the kids entertained.

By packing even a couple of gadgets, you could very easily find yourself carrying over £1,000 worth of hardware on holiday. If one of your gadgets is lost, stolen or damaged while you’re away, the cost of your holiday could really add up.

Most new gadgets come with a manufacturer’s warranty, but this will only cover you for mechanical breakdowns, and usually only for the first 12 months of ownership. A manufacturer’s warranty does not provide cover for accidental damage, loss or theft — so you’ll need to cover your gadgets elsewhere if you want a replacement without ending up out-of-pocket.

Depending on your gadget insurance policy, you may be covered for loss, damage or theft if you are outside the UK.

Do I need to tell my travel insurer what gadgets I am taking?

If you’re planning a trip abroad, you’ve probably already taken out travel insurance — this is wise as it can provide valuable protection for healthcare and if your holiday does not go to plan. But you shouldn’t rely on your travel insurance policy to cover all of your possessions, especially if you’re bringing expensive gadgets on holiday with you.

While most travel insurers offer a generous payout for lost baggage, you could be subject to a limit of as little as £100 to claim back for a single item. With some modern smartphones costing upwards of £700 and high-end cameras even more, it’s unlikely you’ll be able to claim back enough for a replacement on a standard travel insurance policy.

Therefore, you do need to specify if you want cover for single, valuable items which you are planning to take abroad.