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There four cellular insurance policy types: In the US in all states including New York and Florida all the way to Alaska, there are three cell insurance policy types that are available for new and used GSM 3G mobiles both locked and unlocked, whether subscribed to through the wireless Internet or traditionally through providers like Verizon insurance, AT&T insurance, T Mobile insurance and others. As a subscriber for cheap cell phone services you should understand what it is exactly your phone insurance covers when you suffer from lost phone, stolen phone, broken phone for no apparent reason, water damaged phone or simply doesn’t work anymore. We have looked at three high profile policy types for US cellular insurance and extended warranty programs and here is important inside-the-policy information you should be aware of:

1.      Extended Warranty policy (hereon interchangeably referred to as EW) for new, refurbished or used cell phones

2.      EW plus phone damage from handling policy (hereon sometimes referred to as ADH) available for new cell phones with manufacturer supported protection only

3.      ADH plus Lost phone & Stolen phone policy available for new cell phones with manufacturer supported product only

4. EW plus ADH plus Lost & Stolen

Every phone insurance policy sets limits: You as a cell phone owner may subscribe to set limits and restrictions on claims to anticipate and avoid unlimited interpretation of the term “phone damage,” abuse of the insurance system and of course head off misrepresentation and fraud. Looking through four focal cell insurance policies for unlocked and locked phones offered by traditional providers like Verizon insurance and through the wireless Internet there emerged hard and fast universal exclusions that pertain to all four of the phone insurance policy types above, as follows:

1. Universal phone insurance policy exclusions

Misrepresentation or fraudulent presentation of claims related to cell phones, prepaid or postpaid, new or refurbished disqualifies the claim immediately; any digital mobile device covered by the manufacturers’ protection warranty (or recalls) nullifies all other possible claims; abusive treatment of the cell phone irrespective if it is a cheap device or a Blackberry Storm, is not covered under any circumstances; negligent behavior includes failing to use protective covers like the Dooney and Bourke cell phone case or even Tinkerbell phone cases to keep your handset safe; damage resulting from natural perils like hurricanes and floods, or acts of war, doesn’t count in any claim on any make of phone including Motorola Razr, Samsung – and all others; aligned to this category are also animal infestation, rust, corrosion and leaking batteries, dust; cosmetic damage and annoyances like squeaks and noises that are not really functional issues in using cell phones or their applications like the iphone weather widget, Google phone Gmail or links of cellular prepaid; cell phone user depreciation commonly known as wear and tear does not count in the spectrum of claimable events either; loss of data or cost of time as a result of getting digital devices repaired are not covered at all – even for businesses, small business administrations or kids phones; if it is uncovered that there have been unauthorized repairs or unlocking of the cell phone illegally at a prior time it will disqualify a claim, as will inability to supply an official cell phone IMEI number, or it is seen that the IMEI number has been altered in any way; damage caused in the delivery from the provider like AT&T or T-Mobile to the customer is not claimable as also is a cellular device that is dead on arrival (known as DOA); failure to provide an invoice confirming proof from an authorized seller of cell phones, locked or unlocked, prepaid or post paid is a claim breaker; water damage from weather is seen as a subset of natural occurrences and is generally not covered. Ensquared, a leading authority in Insurance for unlocked cellphones also show why No IMEI number means no insurance for unlocked cell phones

2. Conditions related to Manufacturer Supported Product (MSP) on cell phones

Concurrent Manufacturer Supported Product is a prerequisite to get into mobile phone insurance policies involving Phone Damage or Lost phone or Stolen phone and sometimes but not always in Eextended warranty stand alone policies. MSP attaches to most of the famous brands like Nokia N96 or the Blackberry Bold, but be careful here: MSP has to be defined in terms of the country it is being insured in (i.e. USA) meaning that international MSPs probably don’t count and can disqualify the policy right out of the blocks; rejection of a warranty claim by the manufacturer under the in-force MSP automatically disqualifies a claim for same thing under the phone insurance policy as well; ET cell phone insurance policies with no ADH inclusion usually cover used and new phones, may not need MSPs to be valid and accept international MSPs.

3. Notable limitations existent in every mobile phone insurance policy

It is critical to note the following that will be stated in every cell insurance policy:

• Limit of the claims for defective mobile phones: We found this can range from a $399 maximum to $1500 maximum per claim
•  The cell phones that qualify: EW stand-alone policies were found to accommodate both new and used phones, whereas the ADH and Lost or Stolen type policies even if including EW were very strict in allowing only new phones with USA MSP into the fold; in fact in one prominent policy, any mobile device older than 14 days was disqualified from applying
• Exclusion of, or inclusion of stated cell phone accessories in the claim need to be noted
• The deductible applicable per claim – essentially the cell phone owner’s contribution to getting whole again on any cell phone claim. Extended warranty has generally zero deductible, while the other two type policies have deductibles ranging from $50 - $100 per claim
• How many claims can be made in any given period, thus excluding any claims over this limit; it may also deem policy void if one claim is made and met
• How claims will be met by the insurer defining their range of options so the claimant will not be disappointed when he does not get new or exactly the same as his previous cell phone in color or look
• If mobile is damaged: Right of inspection of the defective cell phone by the insurer’s representative is always required together with an authorized cell phone seller’s invoice from a US outlet
• If digital GSM cell phone is stolen or lost: Also an authorized invoice plus the cell phone IMEI number; sworn oath by the aggrieved cell phone owner if required; copy of police report; copy of report to the provider – all within stated periods of time (that will nullify claim if not adhered to)
• Date on which the cell phone policy becomes effective as there are policies that exclude time for claiming after establishing the policy (this ranges from immediate effect to 30 and 60 days)
• Where the claim on the cell phone is recognized: Some say only in the USA; others say anywhere in the world but claims for cell phone repairs or replacement must be executed only in the USA

 4. Obvious exclusions of different cell phone insurance policy types:

Extended Warranty policies on cell phones with locked contracts and unlocked phones alike exclude claims involving both ADH and lost or stolen;

1. ADH plus Extended Warranty on all GSM phones exclude lost or stolen;
2. Stolen and Lost on all mobiles plus ADH exclude extended warranty (ET) coverage

Expected Pricing for insurance of unlocked cell phones and locked mobiles:

A key goal is to find a comprehensive policy that will cover extended warranty, ADH and lost or stolen. As a price gauge this is expected – if found - to be around $8 pm with probably at least $75 deductible per claim; by contrast ET = $2 pm with zero deductible; ADH & ET = $4 pm with $50 deductible pc; ADH & Lost and Stolen = $5 pm with $50 deductible pc.

Cancelling a cell phone insurance contract and disputes

This differs from policy to policy but always clearly laid out. In event of dispute arbitration procedure is always clearly outlined as well. In cases there are States in USA with different laws and these will be outlined separately. Read all this so that there are no surprises.