Insurance
TL;DR
Gadget insurance covers loss, theft, accidental damage and breakdown of electronic devices including smartphones, laptops and tablets. Policies can cover a single device or multiple devices under one premium. Exclusions vary significantly: most policies exclude cosmetic damage, unexplained disappearance, and damage caused by software failure. Check whether your devices are already covered under a home contents policy or a packaged bank account before buying standalone gadget insurance.
Key facts (2026)
- Gadget insurance is a general insurance product regulated by the FCA; providers must be authorised and meet FCA conduct standards including fair claims handling obligations under the Consumer Duty (FCA, PS22/9, in force July 2023).
- The Association of British Insurers (ABI) reports that personal electronics are one of the most frequently claimed-against categories in home contents insurance; devices with a value above the single-article limit in a home policy (typically £1,500 to £2,500) may not be fully covered without a scheduled item endorsement.
- Standalone gadget insurance premiums for a smartphone typically range from £5 to £15 per month depending on device value, coverage type and excess level; multi-device policies covering three to five devices typically cost £10 to £25 per month.
- Most gadget insurance policies apply an excess of £50 to £150 per claim; high-value claims (over £500) frequently trigger enhanced verification requirements including a police crime reference number for theft claims.
- The Financial Ombudsman Service upheld approximately 45 percent of gadget insurance complaints referred to it in 2024/25, with policy interpretation disputes and claim refusals as the most common complaint categories (FOS Annual Review 2025).
What gadget insurance covers and what it does not
Most gadget insurance policies cover: accidental damage (cracked screens, liquid damage, physical breakage); theft (covered only when there is evidence of forcible entry, violence or pickpocketing - not unexplained disappearance); loss (not included in all policies; often an optional add-on at higher premium); and mechanical or electrical breakdown outside the manufacturer's warranty. Policies commonly exclude: cosmetic damage that does not affect functionality (scratches, dents); damage caused by wear and tear; loss without evidence (items that simply cannot be found); damage caused by software faults, viruses or deliberate misuse; and devices not listed or registered on the policy at the start of cover. Check the exclusions list in the policy wording - not the summary document - before purchasing.
Single device versus multi-device policies
A single-device policy covers one named device, typically identified by its IMEI (for smartphones) or serial number. It is straightforward for a single high-value item such as a flagship smartphone or a laptop. A multi-device policy covers a set number of devices - typically three to five - under one premium, which is cost-effective for households with several devices. The per-device premium under a multi-device policy is generally lower than the equivalent sum of individual policies. The trade-off is that all devices on a multi-device policy may share the same annual claims limit, so a year with two or three claims can exhaust the limit. Check the per-device and aggregate annual claim limits before opting for a multi-device policy.
Check existing cover before buying standalone insurance
Before purchasing standalone gadget insurance, check whether your devices are already covered elsewhere. Home contents insurance policies typically include personal possessions cover that extends to portable electronics both inside and outside the home, subject to a single-article limit and an overall claims limit per year. Some policies require high-value items to be individually specified. Packaged bank accounts (accounts with a monthly fee) often include gadget insurance as a bundled benefit, though the coverage terms may be more restrictive than a dedicated standalone policy - for example, limiting the devices covered to those owned at the time the account was opened. Extended warranty products offered at the point of retail sale typically cover mechanical breakdown only and do not cover accidental damage, theft or loss.
Making a claim: what to expect
Claims under gadget insurance policies typically require: proof of ownership (receipt, purchase invoice or bank statement showing the transaction); evidence of the incident (a police crime reference number for theft, photographic evidence of damage for accidental damage claims); and the device's IMEI or serial number. Claims are normally made online or by telephone and are assessed within a few working days. The insurer may offer repair, replacement with an equivalent refurbished device, or a cash settlement based on the current market value of the device (not the original purchase price). If repair is offered and declined by the policyholder in favour of replacement, the insurer may refuse to cover the difference. For theft, the insurer may first require the device to be blocked via the network (reported to the police and the carrier) before processing the claim.
Key policy terms to compare
When comparing gadget insurance policies, focus on: the excess amount per claim and whether it is fixed or percentage-based; whether loss (not just theft) is included or available as an add-on; the replacement basis (new-for-old or indemnity); whether the replacement device will be new, refurbished or a cash equivalent; the annual claims limit and whether it is per device or aggregate; whether worldwide cover is included or limited to the UK; any waiting period before cover applies after purchase (some policies impose a 14-day waiting period to prevent claims on pre-existing damage); and the renewal price versus the initial premium (gadget insurance prices often increase at renewal). Use these criteria consistently across providers to make a valid comparison.
Cooling-off rights and cancellation
Under FCA rules, gadget insurance policies purchased online or by phone are subject to a 14-day cooling-off period during which you can cancel for any reason and receive a full refund of the premium paid, less any claims made during that period. After 14 days, cancellation is generally possible mid-term with a pro-rata refund of the unused premium, subject to an administration charge that must be disclosed in the policy terms. If you cancel a gadget insurance policy because you have found equivalent cover elsewhere (such as under a home contents or packaged bank account), ensure the replacement cover is active before cancelling, as even a single day's gap in cover can leave you unprotected.
Frequently asked questions
Does gadget insurance cover a cracked screen?
Yes, in most cases. Accidental damage including a cracked screen is a core insured peril under most gadget policies. The claims process typically requires photographic evidence of the damage and the device's IMEI or serial number. The insurer will usually arrange repair or replacement. Some lower-cost policies exclude screen-only damage or require a higher excess for screen repairs; check the specific policy wording before purchasing if screen cover is your primary concern.
Can I insure a second-hand or refurbished device?
Yes, though the policy will typically cover the current market value of the device, not the new price, in the event of a total loss claim. Some providers require the device to be in good working condition with no pre-existing damage at the start of cover and may ask for photographic evidence or a condition report at inception. Devices purchased from private sellers may face more scrutiny on proof of ownership at the claims stage.
Is gadget insurance worth it for a smartphone on contract?
This depends on the excess level, the monthly premium and the replacement cost if the device is lost, stolen or damaged. For a high-end smartphone with a replacement cost of £800 to £1,200, gadget insurance at £8 to £12 per month with a £75 excess typically represents reasonable value compared with the uninsured replacement cost. If your network contract includes a hardware replacement scheme, compare its coverage and cost against standalone gadget insurance before buying.
What is the difference between gadget insurance and an extended warranty?
An extended warranty covers mechanical or electrical breakdown - faults that arise from the device's internal components failing through normal use. It does not cover accidental damage, theft or loss. Gadget insurance covers accidental damage, theft and sometimes loss in addition to breakdown. For comprehensive protection, gadget insurance provides broader coverage than an extended warranty. For a device under manufacturer warranty where breakdown is the only concern, an extended warranty may be sufficient at lower cost.
How do I find out if my bank account includes gadget insurance?
Check the benefits guide for your current account. If you pay a monthly fee for a packaged account (such as a Platinum, Select or Premium account), it is likely to include some insurance benefits. Log in to your online banking or contact your bank to request the full benefits summary, including the gadget cover terms. Compare the included cover's excess, claim limits and exclusions against a standalone policy to assess whether the packaged cover meets your needs.
How we verified this guide
All figures and rules in this guide were verified against primary government and regulator sources during May 2026.
Primary sources
- FCA - Insurance consumer basics
- ABI - Personal possessions insurance guidance
- Financial Ombudsman Service - Insurance complaints
- MoneyHelper - Gadget insurance guidance
- Citizens Advice - Insurance rights
Last reviewed: May 2026.