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The need for computer insurance
Theft and damage are instance that you need to safeguard against in the first instance. Many homeowner’s may not think about fire damage to the items, possibly considering it to be a more extreme occurrence, but theft is a constant worry, with security paramount on a homeowner’s mind. Fire does not discriminate against items when causing damage, whereas a thief will consider value first and portability overall. Desktop computers are less easy to steal than laptops, so if you own a laptop insurance against theft is possibly more applicable to you than desktop owners. Often insurers will cover a “static” item (such as a desktop computer) for longer (sometimes up to five years) than a “mobile” item (generally only able to be protected for up to three years).
If you have home and contents insurance, it is possible that your computer will be covered, but you should check the fine print or check with your insurer to make certain. It is possible that there is a limit on each individual item, in which case a computer’s value may not be fully covered. Laptops, considering their ease of relocation, are a much more taxing prospect.
Laptop insurance
It’s been estimated that a whopping 50,000 laptops are stolen in Australia each year, which, considering their huge value and relatively small size, is no surprise. For this reason, you should check very carefully if your home insurance protects your investment against theft. Chances are that it won’t, and you’ll be forced to replace it yourself if it gets stolen or damaged in transit. Sometimes an item of notable value over the certain limit (often $1500 or even $1000) won’t be covered unless it is specifically referred to in your home insurance policy (jewellery is the item traditionally referred to separately in home insurance policies). It is worth discussing with your insurance broker if you can list your laptop on a new policy or add it to an existing policy.
The same goes for business insurance: if your computer gets pinched on the train or bus you might be left out in the cold if you haven’t acquired specialist laptop insurance. You should ask for a policy that covers your laptop “in transit”, and some policies will even cover your laptop anywhere in the world (usually up to 28 days per trip). Standard protection includes coverage for theft, accidental damage, fire, and also loss. Many also have a low excess (as little as AU$100), which will save you from the unpleasant expense of replacement parts. It’s worth noting that your policy may decide to replace or repair your laptop, depending on the individual case (obviously theft would require replacement).
Warranty
When you buy a new computer from a high street retailer, or even online, you’ll probably be given a certain amount of time that your computer is covered for. Often this is up to two years, but you can pay to increase the duration. This is obviously a good idea if you can afford it; repairing computers, especially laptops, can be expensive to the point of being debatably not worthwhile. You should also remember, however, that this is likely only to cover malfunctions that the manufacturer can be fairly blamed for; if you drop your laptop in a swimming pool, for example, or it is stolen, you almost certainly won’t qualify under the warranty and you’ll probably wish that you had taken out insurance.
Computer insurance needn’t be off putting to the point of despair. The main issues are theft, fire, accidental damage, loss, whether there is a capped value, and if your computer is covered in transit and travel (nationally and internationally). Considering these factors should take the sting out of insuring your computer in Australia.
