Gadget insurance complaints double


Updated on 22 December 2014 | 0 Comments

Gripes about gadget cover soar.

The Financial Ombudsman Service (FOS) received 2,200 complaints about gadget insurance last year, double the number received the year before.

It found many people undervalue the cost of the technological items they carry and are unware that most general contents insurance policies do not cover their items outside the home.

However, other people who are aware of this are taking out specific gadget insurance. But the FOS found these policies wrongly failed to pay out around half of the time.

It had to intervene in 800 cases where claims were turned down and found in favour of the claimant in 43% of cases.

Gadget cover

High-value items such as smartphones, laptops, MP3 players and portable games consoles are carried around by people every day.  

The FOS says gadget insurance should cover devices against damage, including the effects of water, and theft, as well as loss at home or when you are out.

However, it found complaints were centred on gadget insurance not paying out after a device was stolen or accidentally damaged.

[SPOTLIGHT]The FOS said it sometimes found terms in the contract had been applied unfairly and it was hard to see how anyone could make a successful claim.

In one example a man had his tablet stolen from a locked suitcase in a locked room while he was on holiday. The insurer rejected the claim as there was no evidence of forced entry.

But the Ombudsman ruled this unfair.

How to ensure your gadgets are covered

The FOS offered these tips on how to make sure your gadgets are covered.

If you feel your insurer has fobbed you off complain to the FOS. Read How to complain to the Financial Ombudsman Service for more information on how to do it.

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