Insuring your valuable gadgets

Question: I am a big technology fan and am looking to buy one of the new iPad 2s that have just arrived in the UAE to link up with my laptop and mobile phone, which together are relatively valuable. I travel abroad a lot for work and I am concerned about losing them or having them damaged or stolen, what is the best way to make sure they are all adequately insured?

Answer: Having set aside the finances to invest in the latest technological devices it is important that you also think about protecting them — as visible and portable investments they can be at risk of theft, damage and loss. Luckily, in the UAE the likelihood of theft is much lower than in other parts of the world. However you say you travel a lot and so the potential to lose, damage or have your new iPad 2 stolen is heightened.

Adding your new iPad2, mobile phone and laptop to your home contents insurance can actually be the easiest and cheapest way to go. Personal effects are covered up to the limit shown on your policy schedule, the sums insured are nominated by you and are insured against loss, theft or accidental damage. These policies can cost less than Dh200 per year.

Adding these new items to your current policy might make it a good time to review the home insurance you already have; taking out a separate policy for your new gadgets that covers them for ‘specified' risk may be appropriate and an independent financial adviser can assist you with this.

‘Specified All Risk' insurance covers individual items valued at more than a certain value set by the insurer. Such a policy means that your iPad 2, laptop and phone are all individually covered for their replacement value, so if anything happens to any or all of them you can claim in full for their replacement. Alternatively, you can place the items under an ‘Unspecified All Risk' policy that bundles them in with a host of household items valued as a total, which must be less than the certain amount specified by the insurer. This will be the cheaper option.

Cover for fraudulent use of your iPad 2 or calls from your mobile may also be a wise move. Most home contents insurance does not cover this and you may need to take out a separate policy. Some insurance providers offer ‘fraudulent call' cover, however, this only covers you for calls made after you have reported the phone lost or stolen to your network provider. Currently fraudulent calls are not covered in the UAE.

The other option is to take up an offer which a small number of retailers make when they sell you goods. These insurance policies are sometimes specific to the product and may be limited to theft or other specific risks. So it's wise to check the conditions carefully.

Prior to confirming any insurance policy, check the cost of the excess, which can vary widely between insurers and any specified risks which are not covered. In the event of a claim, proof of purchase or valuation will be required in order to settle the claim expeditiously.

The writer is Director General Insurance, Nexus Insurance Brokers LLC. www.nexusadvice.com