This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Insuring Your IPhone: Now There Are Rules

We're all increasingly connected, with smartphones and laptops and tablets. But what happens if your iPhone takes a dip in the toilet, or your laptop gets swiped as you're ordering a latte?

An extended warranty will protect you if there are product defects, and your renters or homeowners insurance will apply if the device is damaged or stolen, but you'll likely have to pay a steep deductible and run the risk your premiums will jump if you make a claim.

Another alternative is insurance for portable electronic devices, and the growing demand is prompting states to start regulating the industry. (See: " Is iPhone insurance worth it?”)

"The proliferation of cellphones and connectivity that everybody wants certainly gives rise to this market. It's a ready market," says Kathy Donovan, senior compliance counsel for insurance at Wolters Kluwer Financial Services.

The soaring demand for connectivity is borne out by figures from the Internet technology research firm comScore, which estimates that as of November there were 123 million smartphones in use in the United States. (See: " Nomophobia: Is your cellphone addiction covered?")

While you may only pay a couple of hundred bucks for an iPhone 5 with a two-year service contract, you're likely to pay several times that much for a replacement if you need one before the contract is up.

Ultimately, purchasing insurance for that iPhone could save you hundreds of dollars if something happens to the phone.

State governments requiring license to sell electronics insurance

Now state governments are trying to make sure consumers get what they pay for and understand what they pay for, and over the past three years about 40 states have started regulating the portable electronics insurance industry, Donovan says. The key points of the laws tend to be similar from state to state.

Colorado was one of several states where regulation of vendors of insurance for portable electronic devices went into effect this year. To sell such insurance, a vendor needs to obtain a limited license, which costs $71 for a company based in Colorado, or $112 if they're located in another state.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs