Less than one in five home insurance policies cover mobile phones outside the house

17 December 2019

Most home insurance policies cover mobile phones but some don't offer better protection than mobile phone insurance

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This Christmas people across the UK are expected to give or receive new mobile phones, with the latest models costing up to £1,500, according to new data from financial data firm Defaqto.

But the extent to which your home insurance policy will cover a new phone varies.

Nearly all (99%) of home insurance policies on the market include cover for a mobile phone if it is stolen from your home, Defaqto says.

However, only 18% of policies offer protection for your phone if you’re out and about, unless you’ve added ‘personal possessions’ cover to your policy.

Most home insurance policies won’t cover things like unauthorised calls and downloads made on your phone if it’s lost or stolen, which could run up hundreds of pounds.

Furthermore, your home insurance excess - the amount of money insurers require you pay towards a claim - could be anything up to £500.

Most mobile phone insurance policies will cover the cost of repairing or replacing your phone if it’s lost, stolen or damaged, inside or away from your home.

Around 65% of mobile phone insurance policies will cover the cost of unauthorised calls and downloads made on your device.

The excess on a mobile phone insurance policy could be anything up to £350 but the current average is £121.

Do you need mobile phone insurance?

Smartphones are becoming increasingly expensive and the latest models like the Google Pixel 4 XL or Apple iPhone 11 Pro could set you back hundreds to repair and around £1,000 to replace outright.

So unless you have money set aside to deal with those costs, having some form of protection in place for your phone is important. 

Mobile phone insurance is growing market of specialist policies designed to cover the cost of repairing or replacing your mobile phone if it’s lost, stolen or damaged.  

However, if you’re one of the millions of households in the UK with a home insurance policy, your smartphone may already be covered.

Although mobile phone insurance offers more comprehensive protection for phones than a standard home insurance, you’ll need to weigh up the pros and cons of each to work out whether it’s worth taking out a policy.

If you have a history of losing, breaking or having your phone stolen, mobile phone insurance could be a good option for you, especially if you want cover for things like unauthorised calls and downloads.  

It’s important to read the terms of your policy, though, as some mobile phone insurance providers have a maximum number of claims you can make in a year.

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