Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Aug 25, 2021

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The popular Apple iPhone comes with one year of hardware repair coverage via its limited warranty, but what happens if the device is damaged as the result of an accident, or worse yet, stolen? Now you’re out a phone, and getting a replacement can be expensive.

Unfortunately, Apple and sole wireless carrier AT&T don’t offer any form of iPhone insurance, despite the device going for a pretty penny. Being an expensive mobile device, it would make sense for them to offer coverage options rather than just relying on customers to purchase things like a screen protector and case.

However, there are other options if you want iPhone coverage, though you’re going to want to look into what sort of loss coverage you need. It differs from person to person, what sort of protection you need for your phone. Everyone lives a different lifestyle, and sometimes that can be harder on a phone.

1. If you have a homeowner’s insurance or renter’s insurance policy, your phone is already covered as personal property, under the policy provisions. For the record, so is everything else you own and may carry with you. This can be great news if you travel far for work, or use your phone extensively and it gets subjected to natural disasters more easily. Though if you’re only bringing your phone to places like a coffee shop rather than a construction site, there’ll be less of a chance it’ll get damaged.

Here’s the catch: You likely have a deductible on your policy, and the odds are the deductible is at least $500. So, while you are “covered,” you will have to file an insurance claim and pay $500 to get your $500 phone replaced. Oh yeah, and your policy premium may go up as a result of filing the claim. Your C.L.U.E. report would show the claim for between 3 and 5 years.

Recommended: If you lose or damage the phone, don’t file a claim, just pay for it out of your pocket. If you don’t have that type of money, consider buying a cheaper phone until you have enough to replace your phone with a device you’ll enjoy.

2. Your iPhone may be covered as data processing equipment, similar to a computer, depending on the language of your homeowner’s policy. This might mean it is subject to a different, or even no deductible, if it is lost or damaged. Protection in this regard can be a bit pricey.

Here’s the catch: While this may seem like a win for you, you will likely have to argue with your insurance company, and the “loss” may still show up on your C.L.U.E. report, which may raise your insurance rate for a few years.

Recommended: The same as above. If you can’t afford the potential cost of replacement or repair of the device, you may want to consider a less costly purchase next time.

3. You may be able to purchase a personal articles floater. This is a type of marine (goods in transit) coverage that is specially designed for high cost items that do not stay in a fixed location, usually reserved for jewelry.

Good News: There is typically no deductible on this coverage type, and it is usually an “open perils” policy, which means your insurer will pay for any cause of loss unless it is specifically excluded in the policy language. This means the most common types of accidental damage or liquid damage would be covered unless your policy lists these as exclusions.

4. Your iPhone will NEVER be covered by your car insurance policy. If you leave the phone in the car and it’s stolen, you’re out of luck. Since this is a limit put forth by your auto coverage plan, there’s not much that you’d be able to change, not even by getting additional coverage.

Good News: The phone would still be covered by a homeowner’s or renter’s policy if you have one.

Bad News: The loss would still be subject to a deductible, which may meet or exceed the cost of the phone. It boils down to what you’re determined to pay for a replacement.

5. Finally, there are companies out there that offer iPhone insurance for accidents and failures, but they charge quite a bit and may also be subject to a deductible.

I have heard of some companies, such as State Farm, offering coverage specifically for iPhones, for roughly $40 per year. Some policies don’t even carry a deductible.

Being an insurance professional, it’s unclear regarding how long that will last, as it leaves them susceptible to paying a lot of claims for damaged phones. It may simply be a way to get a potential customer looking for an insurer in the door as a means to sell other, more profitable lines of insurance.

So at the end of the day, the best advice is to treat your iPhone like the tiny handheld computer it is, and take very good care of it.