Electronics Insurance vs. Homeowners: Do You Need Both?

That’s why it helps to understand how homeowners insurance and electronics insurance work together so you can decide whether extra protection makes sense for your household. With the right coverage in place, you can safeguard your devices and avoid unexpected out-of-pocket costs when accidents happen.

How electronics are protected under standard home insurance policies

It’s helpful to understand how your homeowners, condo or renters policy works before a loss occurs.

What’s typically included

Most homeowners, condo and renters insurance policies provide some protection for certain electronics, but what is covered and what isn’t depends on the policy and the cause of damage. Standard policies may help in some situations, while others require added protection through an endorsement.

These often include:

• Fire or smoke
• Theft
• Certain weather-related events, such as lightning, windstorm or hail
• Vandalism
• Sudden, accidental water discharge from plumbing or appliances

These protections usually apply to personal-use devices whether they’re in your home or temporarily away from it. For example, if lightning strikes and damages your smart TV, your standard homeowners policy may help pay for repair or replacement, subject to your deductible.

Common limitations

While a standard policy offers valuable protection, there are some important limitations to keep in mind. Your policy may not include coverage for things such as:

• Accidental damage (drops, spills)
• Power surge and heat damage 
• Accidental data loss

If you drop your phone and crack the screen, your homeowners policy likely won’t cover the repair since it’s considered accidental damage. Additionally, if your electronic device claim is covered under your homeowners policy, your homeowners deductible will apply, which may be higher than the cost to repair or replace the device. For example, if your deductible is $1,000 and a phone repair costs $300, you'd be unable to recover any funds since the cost to repair your phone is less than your deductible.

How electronic device insurance enhances your protection

Electronics coverage builds on the protection already included in a standard homeowners, condo or renters policy. While those policies help if your devices are damaged by covered events such as fire or theft, electronic device insurance extends that protection to include accidents and other situations that aren’t normally covered. This can make a big difference if you rely on your devices for your everyday needs.

This endorsement can help with:

• Accidental drops or spills
• Power surges that damage plugged-in devices
• Heat-related damage like a console that overheats during use
• Accidental erasure of stored data
• Certain types of virus-related hardware damage

With Platinum Choice policies (HO5), many of these protections may already be included. Even so, adding electronics coverage can provide extra benefits, including:

• A lower deductible for electronics claims.
• Clear, itemized coverage for specific types of damage, like accidental erasure or virus-related issues.

Example: A child spills a drink on your personal laptop, and you have a $1,500 deductible on your HO5 policy. With electronics coverage, you could pay only a $100 deductible toward the repair or replacement, making recovery easier and more affordable.

How electronics coverage works

Once added to your homeowners, condo or renters policy, electronics coverage acts as an endorsement that provides added protection for your devices. It’s designed to complement your existing policy by covering types of damage that standard insurance may not include. You can choose the amount of protection that fits your household and select a lower, fixed deductible that applies specifically to electronics claims.

When a covered loss occurs, the endorsement may come into play to help pay for repairs or replacements of laptops, tablets, smartphones, gaming systems, cameras, smartwatches and other personal devices that are damaged by sudden or accidental events like drops, cracked screens, or water and liquid damage. These benefits extend to items used in your home and, in many cases, when you take them with you.

Coverage limits are flexible, often starting around $500 and increasing in set increments. Deductible options are typically lower ($100 or $250) than what you’d have under your main homeowners policy, which can make it easier to file smaller claims. 

Common exclusions

Even with added protection, electronics insurance doesn’t cover everything. Some types of damage are not covered, such as:

• Gradual wear and tear or aging
• Internal mechanical or electrical breakdowns
• Pet-related damage
• Unauthorized or incomplete repairs

It is important to understand that your main homeowners or renters policy limits still apply. Special limits outlined in standard policies may restrict coverage for damage of electronics in a vehicle or for devices used primarily for work or business purposes. Reviewing these details can help you understand how your electronics protection and homeowner’s policy work together to safeguard your devices.