With Samsung suspending production on the Note 7 after a series of fires, some of which occurred on airplanes, according to Fortune.com, APRIL Travel Protection has issued a statement explaining how mobile devices may and may not be covered under many travel insurance policies.
According to APRIL, in many instances, travelers will often find their Personal Effects coverage realistically caps out as low as $500, which does not offer adequate protection for smart phones, tablets and consumer electronics.
Most consumers gauge the level of protection a policy provides based on the total coverage amounts listed in the benefits, APRIL said. When it comes to Baggage and Personal Effects, policies cover incidents of loss and damage up to an established maximum. Then there are often per article limitations as well as a total combined maximum for consumer electronics.
Additionally, some policies lump consumer electronics into the same category as jewelry, furs and other seemingly unrelated items, creating a 'super category' of expensive Personal Effects and restricting the maximum total combined payout for these items, APRIL said.
Prior to the advent of the iPhone, it was primarily businessmen and photographers who traveled with expensive technological equipment, APRIL said. Today, most people bring multiple devices including smartphones and tablets. And while a flip phone may have retailed under $200, the latest iPhone will cost upwards of $600 and the newest Microsoft Surface 4 Pro may exceed $1,500.
Many policyholders are disappointed to learn that the maximum payout amount for all these devices, along with their clothing and jewelry, is capped at a combined total as low as $500 per policy in many instances, APRIL said. Even worse, some travelers purchase a premium policy to double or triple their coverage amounts, only to discover their total maximum combined payout for consumer electronics, clothing and jewelry remains at the same $500 per policy.
"And these are examples of policies which do not exclude phones from Baggage and Personal Effects benefits. Some policies may not cover your iPhone at all," said Jason Schreier, CEO of APRIL USA.
Other items which may not be covered by some policies under Baggage and Personal Effects include business equipment, musical instruments, fragile articles, medications, eyeglasses or contact lenses, dental equipment, documents, money, computer hardware or software, perfumes and cosmetics, APRIL said.