Laptop Computer

Answer:

If you own a laptop computer, you may want to protect this costly investment. There are several insurance options available, depending on how you use your laptop and how much coverage you need.

If your laptop is strictly for personal use, it should be covered under your homeowners policy--at least up to a point. Most home insurance policies have coverage limits for computers and other electronic equipment. If the value of your laptop exceeds your policy's limit, you may want to have the laptop appraised and have a special rider written into your policy to cover its full value.

If you use your laptop for business purposes, there's a good chance that your home insurance policy will not cover it. Some policies provide a limited amount of coverage for business equipment, but this is the exception rather than the rule; read your policy carefully and check with your insurer if you're uncertain about your coverage. In most cases, you'll either need to purchase a business rider to your home insurance policy or a stand-alone laptop policy.

Riders are typically a less expensive alternative, but the coverage may be limited both in terms of dollar amount and extent of coverage. For example, a rider may not cover your laptop while you're traveling. Given the frequency of laptop theft in airports and other public places, this could leave a potentially costly hole in your coverage.

Some insurance companies now offer stand-alone policies to cover laptop computers. Although the coverage offered by such policies tends to be more complete than that of a rider, it is also significantly more expensive. If you choose to go with a stand-alone policy, try to find an insurer that specializes in computer coverage, and ask questions. Make sure you describe exactly how and where you use your laptop so that you can be sure you're getting the right policy to fit your needs.

Regardless of the type of coverage you purchase for your laptop computer, normal wear and tear will not be covered. And unfortunately, you can't insure your computer against obsolescence.