Smart Coverage for Smart Gadgets

Exciting news from this year's Consumer Electronics Show in Las Vegas - your new appliances may be "smarter" than you!   In addition, they will communicate with each other and you, via your smart phone.  Your refrigerator will be able to suggest recipes based on what you have in the fridge, your washer will recommend a cycle to get a stain out and your robotic vacuum will sweep the living room on your way home from work.  Rosey the robot maid, step aside! Even George Jetson's home wasn't this automated.

All of this smart technology is great when it works and frustrating as all getout when it doesn't.  Even worse, when smart technology breaks down or is damaged to the point of replacement, our wallets begin to "smart"!

The Insurance Information Institute reports that in 2011, the average claim for power surges to high dollar electronics was $5,112. However, most home policies will not cover damage to appliances caused by a power surge, not to mention the lack of coverage when the equipment has a mechanical or electrical breakdown.  

What's a "smart" consumer supposed to do? One solution is to make sure your emergency fund can handle the cost to replace one of these items when it is damaged. Unfortunately, when all of your electronics are networked together, the damage to one may lead to damage to the others. That may wipe out your emergency fund! 

Others may consider purchasing manufacturer warranties with their new electronics.  A recent article entitled "Extended Warranties" from ConsumerReports.org, advises that these service plans are "cash cows" for the retailer and "bad investments" for the consumer.  If you are going to purchase a warranty, be sure to investigate it fully.

A third option is an enhancement that you can add to your homeowners policy called "equipment breakdown".   Many innovative insurance companies are offering it for less than $50 per year.  This coverage can secure protection for your appliances and home systems from power surge, breakdowns and other losses that are not specifically stated in the policy contract.

This unique coverage extension is convenient and seamless — there are no separate warranty programs or fees to manage. And, best of all, you’ll have peace of mind knowing you’re covered for mechanical and electrical breakdown of your favorite gadgets, including:

• Flat screen, plasma and 3D televisions
• Computer and peripheral equipment
• Washers, refrigerators, ovens
• Freezer units
• High-efficiency home heating and central AC systems
• Home security systems

As you contemplate adding more gadgets to your futuristic utopia called home, contact your Trusted Choice Agent to discuss your options for adequately covering these items on your home, condo or renters policy.   It's the smart thing to do.