Since more homeowner’s are buying computer equipment for use in their homes, insurance companies are including coverage for computer equipment in homeowner’s insurance. The policy however, is limited in what it will cover. If you have broken computer equipment whether it is replaced or not, will depend on your policy specifications. It is imperative as a homeowner to understand what your policy covers, and what may require additional insurance coverage.
If you use your computer equipment for business, it may not be covered under a typical homeowner’s insurance policy as this is meant only for personal use. There are different insurance policies for home based businesses. If the computer equipment is for personal use, the homeowner’s insurance policy will cover broken computer equipment under personal property but only to a certain limit as indicated by the policy. The circumstances leading to the computer equipment getting broken will also determine if you can claim it on your homeowner’s insurance.
Broken equipment as a result of being dropped or manhandled will not qualify for a claim. If your house gets damaged during a storm, say from a tree falling on a room, and the computer equipment gets destroyed, this will be covered to the specified limit predetermined on the policy. Other natural disasters like earthquakes and landslides will not qualify for a claim if your computer equipment gets damaged, unless you had specific coverage added on for those types of disasters.
If your broken computer equipment qualifies for a claim on your homeowner’s insurance, the amount you receive will depend on the cash value of the equipment after it is adjusted for depreciation. And because many insurance companies limit the amounts on computer equipment, you will likely not be able to replace the equipment with the amount you receive. Rather it will be more of a compensation for your loss. However, some companies may be lenient on limitations so it is wise to shop around. You can also opt to get scheduled personal property insurance which allows you to get additional coverage for personal property that has limits. This way you can get more coverage for your computer equipment in the event it gets broken. Every insurance company is different with personal property coverage limits, so it’s smart to contact your agent with any coverage questions.