Cell Phone Insurance - Here's What You Need to Know • Lemonade (2024)

Cell Phone Insurance - Here's What You Need to Know • Lemonade (1)TL;DR

  • Cell phones are usually covered by renters or homeowners insurance policies under the “personal property coverage” part of your policy.
  • Retail phone protection plans might cover accidental damage, but probably won’t cover theft.
  • “Phone & Device Insurance” offered by the carrier or manufacturer will also cover electronics like laptops, gaming consoles, tablets, and other electronics.
  • Phone & Device Insurance is a supplement, but not a replacement for renters or homeowners insurance.

Here’s an all-too-common situation: You’re finishing up happy hour with a friend, and call an Uber home. It arrives much earlier than you thought, so you scramble your stuff together and jump in the car. When you’re all settled in your seat, you reach to grab your phone, and realize it isn’t in your bag.

In panic mode, you sign into Find my iPhone, only to find your precious phone is already halfway across the city. “It must have fallen out of my bag on my way to the car, and someone picked it up,” you realize.

Will you have to shell out $800 for a replacement phone? Well, that depends on whether you have phone insurance, and what kind you have.

Getting coverage for your cell phone is probably one of the last things you want to deal with—because phone thefthappens to everyone else exceptfor you, right? But it only takes one snatch to make you wish you had the right coverage.

Considering whether to get cell phone insurance raises tons of questions. Is it worth getting phone insurance for things like screen cracks? What about water damage? And which plan is right for you?

We’re here to answer your biggest questions around phone insurance – here’s what we’ll cover:

  • What is phone insurance and what does it cover?
  • Does renters insurance or homeowners insurance cover phones?
  • What’s the difference between mobile phone insurance and renters/homeowners insurance?
  • What else is covered by phone insurance?
  • What does phone insurance cost?
  • Which phone insurance plan is worth getting?
  • Phone insurance vs. phone warranty
  • How do I insure my phone?

What is phone insurance and what does it cover?

Phone insurance can take a number of forms—either as a standalone policy or as part of your renters or homeowners insurance (more on that below). Broadly speaking, phone insurance covers damaged, stolen, or lost phones—but what’s covered and what isn’t will depend on the type of policy you have.

Does renters or homeowners insurance cover phones?

Most people don’t realize this, but renters and homeowners insurance do cover your phone in certain specific circumstances. These insurance policies generally automatically cover your phone (and other stuff) for things like theft, vandalism, fire, and other damages (‘perils,’ in insurance speak). You generally won’t be covered for accidental damage or just because you misplaced and lost your phone, though.

But if a thief snatches your new phone was snatched while you’re dancing at a concert, or pickpockets you while you’re traveling abroad, your home or renters insurance will generally cover you.

When Lemonader Phil W. was traveling in Italy, his phone, backpack, and camera equipment were stolenfrom the trunk of his car:

“The lock on the car was popped, and everything was stolen- including all of the footage from my trip. My travel insurance denied the claim, but my Lemonade renters insurance came through and reimbursed me for everything that was lost, including my phone.”

But understanding when your home or renters insurance kicks in, and when what’s called ‘mobile phone insurance’ would, is crucial.

What’s the difference between mobile phone insurance and renters insurance?

In addition to any coverage you’d have from your homeowners or renters insurance, there are specific, third-party plans that are just meant to cover your phone. The standalone plans might be available through your phone’s retailer (like Apple), while others are purchased via your carrier (AT&T, Verizon, etc.)

There are a few consistent differences between these specific phone protection plans and how your renters or homeowners policy would cover your cell phone.

First off, nearly all of these plans available from your carrier or retailer would cover accidental damage (such as cracked screens or liquid damage), while renters insurancedoes not.

On the other hand, retailers (such as AppleCare+) don’t provide insurance for phone theft in their base plan, while renters or homeowners insurance policies would protect you if your iPhone or Android is stolen.

That said, some retailer- or carrier-provided insurance plans might protect your phone against accidental loss or theft. Make sure you ask for the details of your specific policy.

What else is covered by phone insurance?

Insurance provided by your cell phone carrier or manufacturer can also provide coverage for other devices as well. That’s why, in the biz, this coverage is often called “Phone & Device Insurance”.

Other gadgets that you can potentially get coverage on include:

  • Laptops/desktop computers
  • iPads, tablets, and e-readers (like Kindles)
  • iPods and MP3 players
  • Gaming consoles
  • Cameras

If you’re looking to get more coverage on your gadgets, you can also look into purchasing a scheduled personal property endorsement (called Extra Coverage here at Lemonade) through your renters or homeowners insurance policy.

What does phone insurance cost?

Renters insurance is typically more affordable than phone protection plans offered by retailers or carriers. While the price of Lemonade renters insurance start at $5/mo, mobile carrier insurance starts at $9/mo, and retailer-provided insurance starts at $11/mo. That said, to protect yourself against many possible phone-related accidents and snafus, you might want to carry both types of insurance.

Here are a few other key differences to consider:

  • Renters insurance typically has a $250 deductible while other phone insurance plans have lower options. The deductible amount is what you’d have to pay out-of-pocket before your insurance kicks in.
  • Most carriers and retailers require you to buy a plan within a set amount of time (usually 30 days) after buying your phone
  • While renters insurance policies do not limit the # of claims you can make per year, plans from your carrier or a retailer typically limit you to 2-3 claims per year
  • Renters insurance covers all of your stuff (bike, laptop, headphones, etc), while carrier and retailer plans focus solely on phones

Which phoneinsurance plan is worth getting?

Choosing a plan really depends on your lifestyle, habits, and how much you could pay upfront if you needed to get a replacement phone. Again, if you tend to have bad luck when it comes to your phone, you might want to have both renters or homeowners insurance and a phone-specific insurance policy from your carrier or retailer. It’s up to you.

Different loss or damage types have different costs, and replacing a stolen smartphone is much more costly than fixing a smartphone screen.

Cell Phone Insurance - Here's What You Need to Know • Lemonade (2)

So as you decide which plan is right for you, ask yourself these questions:

  • How much $ would you be able to shell out if something happened to your phone that wasn’t covered by your plan – $50? $100? $250? $600?
  • Are you more likely to have klutz-y moments (ie spilling water on your phone), forgetful ones (ie leaving your on a coffee shop table, only to have it stolen), or both?
  • Are you looking to protect all of your stuff, or just your phone?

Bottom line: If you’d like to cover all of your stuff, including your phone, at a lower price, renters insurance is the way to go. But, if you’d like to protect just your phone against multiple incidences of accidental damage (ie cracked screen), adding on additional coverage through your phone carrier makes the most sense.

Phone insurance vs. phone warranty

In addition to renters insurance and specific device protection plans offered by your carrier or retailer, most manufacturers also provide a phone warranty that covers mechanical or electrical problems with your phone.

If you buy a new smartphone with a two-year warranty, only to see it go kaput in six months through no fault of your own, you have the right to demand that your phone be repaired, replaced, or refunded.

An extended warranty is, well, just what it sounds like. To extend the warranty on your mobile device, you’ll want to check with your provider about the terms and conditions for applying.

Needless to say, a phone warranty isn’t the same thing as cell phone insurance. As we mentioned, your renters insurance company will cover your phone in the event of a covered peril like theft, a fire, and other damages. By contrast, your phone warranty covers only mechanical or electrical defects.It won’t cover a stolen smartphone, however⁠—that’s where insurance comes in.

How do I insure my phone with renters insurance?

If you decide to protect your phone (and the rest of your stuff) with renters insurance, getting a policywith Lemonade is easy!

All you need to do is get a basic insurance policy, which takes less than 2 minutes: Download the Lemonade app, answer a few questions about your home, and get insured in seconds.

To make sure you’re getting enough coverage for your phone (and everything else), double check your ‘personal property coverage’ (insurance speak for coverage for your stuff) is sufficient. Otherwise, you could be left high and dry when disaster strikes.

Here’s how to estimate the value of your stuff:

1. Take 2 minutes, walk around your apartment, and take a video (or pics) of everything you care about

2. Make a list of the stuff of everything you just filmed/snapped and estimate how much each item costs

– If you have receipts, keep a pic in case you ever have to replace the stuff under warranty or have to make a claim

– For electronics and more expensive items, it’s important to know the make and model as well as when and where you bought them

3. For shoes, non-electronic kitchen items, and other stuff in bulk, just estimate what it would cost all together

4. Add this up and voilà, that’s the value of your stuff(i.e. how much personal property coverage you’ll need)

Best practice is rounding up to the nearest $10K. So if your laptop ($1,250), phone ($1,000), bike ($1,000), furniture ($5,000), and clothing ($7,000) add up to $15,250, you’ll want to get at least $20k in personal property coverage.

Insure your phone in a jiffy

Phones are expensive, and after shelling out serious $$ for your sidekick, the last thing you’ll want to do is replace it if things go sour. As Lemonader Phil told us:

“When my phone and other gear was stolen, Lemonade came through with a fantastic human-driven service process, and the claim was resolved in 48 hours. That’s why I’ll always have renters insurance through Lemonade.”

Take Lemonade for a spin– it’ll take you less than 2 minutes.

APPLY FOR LEMONADE

Cell Phone Insurance - Here's What You Need to Know • Lemonade (2024)

FAQs

What are the cons of lemonade insurance? ›

While it offers some coverages not usually found with renters insurance policies — including property damage caused by pets — Lemonade does not offer coverage options for personal business property. It also does not offer identity theft protection, a common inclusion among some competitors.

Why is lemonade insurance so cheap? ›

How is Lemonade insurance so cheap? Lemonade claims to offer car insurance policies for as low as $30 a month. The company collects location-based data and your safety score to price your premium, and it leans on artificial intelligence to handle and pay out claims.

What is special about lemonade insurance? ›

We at the Guides Home Team found that Lemonade stands out as one of the best homeowners insurance companies in the industry for its unique claim-filing process that uses a mobile app with artificial intelligence (AI) technology to process information and make payouts to homeowners seamlessly and hassle-free.

What does cell phone insurance not cover? ›

First, many insurance policies won't cover natural wear and tear that happens over time. Your cell phone insurance policy also isn't likely to cover you if you've made changes to your phone. For example, after-market modifications or DIY repairs may disqualify you from coverage, even if the damage is unrelated.

How trustworthy is lemonade insurance? ›

NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates discounts, coverage options, website transparency, financial strength, complaint data and more. Lemonade homeowners insurance earned 3.5 out of 5 stars for overall performance.

Is Lemonade a trusted insurance company? ›

Based on its first few years of selling car insurance, Lemonade received a 2024 Bankrate Score of 4.4 out of 5.0 for auto insurance. Lemonade stands out from other top car insurance companies because it uses telematics to base pricing on drivers' mileage and driving habits.

Does Lemonade actually pay out claims? ›

How will I get paid for a claim? After you complete the claim report on the Lemonade app, you will be asked to enter your bank account information. Once your claim is approved, we'll issue payment, minus the amount of your deductible, directly into your account.

Is it easy to cancel lemonade insurance? ›

The process for terminating your Lemonade Insurance policy is simple. There are easy steps to follow if you decide to cancel online, through the app, over the phone, or via email. Log in, go to your policy, and confirm that you want to end it — that's it!

Is there a cancellation fee for lemonade insurance? ›

We can't speak for other companies, but here's how it works at Lemonade: If you need to cancel your policy for any reason during your policy term, you can do it totally for free, and we'll refund you for the unused portion of your premium.

Who is Lemonade owned by? ›

Lemonade Insurance was founded in 2015 by current CEO Daniel Schreiber, Shai Wininger, and Ty Sagalow. The company received $13 million in early investment capital from Sequoia Capital and Aleph, and subsequently raised more than double that amount in Series B funding in 2016—a rarity for insurance companies.

How many people use lemonade insurance? ›

Digital insurance company Lemonade says its platform now has 2 million customers. The company announced that milestone in a news release Wednesday (Nov. 8) as it reported its quarterly earnings, noting that the pace to reach its second million customers was 35% faster than the first million in 2020.

Who is lemonade insurance target audience? ›

This innovative company has tapped into the preferences of Gen Z by offering a seamless, user-friendly digital platform for insurance services that caters to their on-demand mindset. Moreover, Lemonade Insurance's commitment to social good and transparency resonates with the values held by Gen Z.

Is it worth it to have cell phone insurance? ›

Is cell phone insurance worth the money? For the majority of people, it is. Most plans can come in handy if your device breaks, gets lost, or is stolen. They can help you avoid paying the full price of a replacement and protect you from accidents related to liquid damage and cracked screens.

Will my phone insurance cover a lost phone? ›

Cell phone insurance also covers if your phone is lost, stolen or damaged — even liquid damage. Looking at you July 4th, the most dangerous month for your phone. Learn if adding a phone insurance plan is worth it for you.

What to say when claiming phone insurance? ›

The claims form will require you to provide details of the incident, including the date, time and location. You'll also need to provide a description of the damage or loss and the estimated cost of repair or replacement.

Why is Lemonade better than other insurance companies? ›

Lemonade is a public benefit corporation and employs a program called Giveback. While most major insurance companies keep leftover premiums as profit, Lemonade donates these extra funds to the charity of your choice.

Why can't Lemonade insure my property? ›

Risks that are unique: Lemonade has to exclude certain types of homes, pets, and cars because the risks involved are unique. For example, homes that are rented out for short-term stays are a larger liability and theft risk since they are often unoccupied.

Does Lemonade pay their claims? ›

Overall, Lemonade works like many renters or homeowners insurance policies, with a few twists. Basically, you buy a policy, and when something happens, you'll file a claim with Lemonade. If Lemonade determines the claim is valid, it will pay out the amount of the claim less your deductible.

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