Category: Other personal lines · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-05
Gadget insurance is a UK consumer general insurance product that covers a defined portfolio of portable electronic devices — laptops, tablets, smartphones, cameras, smart watches, headphones and games consoles — against accidental damage, theft, mechanical breakdown after the manufacturer’s warranty period and, where insured, loss and unauthorised use.
Category: Other retail Also known as: multi-gadget insurance, electronics insurance First codified: Regulated as general insurance under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; scrutinised in FCA MS14/1 (General Insurance Add-Ons Market Study) Related legislation: FSMA 2000; FCA Handbook ICOBS; Consumer Insurance (Disclosure and Representations) Act 2012; FCA Consumer Duty Apex Wiki link: /wiki/gadget-insurance/
Gadget insurance is a consumer general insurance policy that covers a portfolio of portable consumer electronic devices owned by the policyholder. The portfolio is typically declared at inception with specified items above a per-item limit (often £150 or £250) and unspecified items below the threshold automatically covered. Most policies allow a maximum of around five to ten devices on a single policy.
Standard insured perils are accidental damage to the device (cracked screens, liquid damage, drops), theft (typically requiring evidence of forced entry or violent theft), and mechanical or electrical breakdown after the manufacturer’s warranty period expires. Optional cover extends to loss (not just theft), unauthorised use of the device for premium-rate calls or in-app purchases, and worldwide use beyond the standard 30 or 60 day territorial limit.
Gadget insurance is distinct from mobile phone insurance, which covers a single phone, although the two products overlap and many gadget policies include the customer’s primary phone as one of the covered devices.
The product was the subject of substantial regulatory scrutiny in the FCA’s General Insurance Add-Ons Market Study (MS14/1), which found that consumers buying gadget insurance through retailers at the point of sale were paying significantly more for similar cover than consumers buying standalone [1]. The FCA introduced point-of-sale remedies including a ban on opt-out pre-ticked boxes and value-measures reporting [2].
Gadget insurance is regulated under ICOBS [3] and is subject to the cross-cutting Consumer Duty [4]. Disputes are within the jurisdiction of the Financial Ombudsman Service.
Gadget insurance is general insurance and falls within class 8 (fire and natural forces), class 9 (damage to property other than land) and class 16 (miscellaneous financial loss) of Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 [5]. Sale is conducted under ICOBS [3] and disclosure under the Consumer Insurance (Disclosure and Representations) Act 2012 [6].
The FCA’s General Insurance Add-Ons Market Study (MS14/1), published in March 2014 and followed by Policy Statement PS15/22 in September 2015, identified that the add-on distribution channel — particularly through phone retailers, computer retailers and white-goods stores — produced consumer detriment in the form of poor value, low claims ratios and product complexity that consumers did not understand [1][2]. The remedies introduced included:
The Consumer Duty (PRIN 2A), in force from 31 July 2023 for new and existing products, raised the bar further by requiring firms to deliver products that provide fair value, communicate clearly with consumers, and avoid foreseeable harm [4]. The FCA has used the value-measures data to identify and challenge outlier products and distribution arrangements in this market.
Where a manufacturer’s warranty is involved, the interaction with consumer law is governed by the Consumer Rights Act 2015, which provides separate statutory rights against the retailer for non-conforming goods. Gadget insurance does not replace these rights but supplements them with insurance against accidental damage, theft and post-warranty breakdown.
A consumer purchasing gadget insurance is typically asked to declare each device covered, its model, age, condition and purchase price. The premium is calculated as a function of the total declared value, the device profile (smartphones and laptops are higher risk than headphones), the policyholder’s age and postcode, and any selected optional cover.
Annual premiums for a multi-gadget policy covering, say, two laptops, two smartphones and a tablet typically range £80–£200 in 2026, depending on insurer, total declared value and excess. A standalone smartphone policy for a high-value flagship handset typically ranges £100–£200 per year.
At the point of claim, the policyholder reports the loss event to the insurer (or its claims handler) and provides: proof of ownership (receipt or bank statement); evidence of the loss (police crime reference number for theft, photographs for damage, fault diagnosis for breakdown); and the device, where the claim involves repair or replacement.
The insurer’s settlement options typically include repair through a panel repairer (most common for accidental damage), replacement with a like-for-like or refurbished device (most common for total loss, theft or non-economic repair), or cash settlement based on the device’s current market value (rare in standard cover).
Excesses are commonly £50–£100 per claim and can be higher for high-value devices (£150–£250). Some policies impose a higher excess for first-incident claims or for claims within the first 30 days of cover (to deter pre-existing damage being claimed at inception).
Common pitfalls include the unattended item exclusion (most policies exclude theft where the device was left unattended in a public place), the proof of ownership requirement (consumers without the original receipt can have claims refused), and the territorial limit on cover outside the UK.
The FCA’s value-measures data shows that claims acceptance rates for gadget insurance generally sit in the 70–85% range, lower than for many other personal lines products, reflecting the high frequency of marginal claims, unattended-item exclusions and proof of ownership disputes [2].
Standalone gadget insurance is sold direct to consumer, online or through general insurance intermediaries, and is generally the better-value distribution channel.
Bundled gadget insurance is included as a benefit of a packaged bank account, mobile phone contract or home contents policy. The cover specification varies materially between bundles and consumers should check whether the bundle excludes their primary device or has a low single-article limit.
Point-of-sale gadget insurance is sold by the retailer at the time the device is purchased. Following the FCA’s MS14/1 remedies, opt-out selling is banned and price disclosure is required [1].
Extended warranty is technically not insurance — it is a service contract sold by the retailer or manufacturer — but the product is similar to gadget insurance for breakdown after the manufacturer’s warranty period. Extended warranties typically do not cover accidental damage or theft.
Phone manufacturer protection plans (e.g. Apple Care+ or Samsung Care+) are also typically service contracts rather than insurance products, although they cover accidental damage similar to gadget insurance.
Home contents ‘gadget’ extension is an extension to the home contents policy that covers personal electronic devices on a worldwide basis. Where this is in place, standalone gadget insurance is often duplicative.
An illustrative example. A consumer purchases a multi-gadget policy in March 2026 for £140 per year covering a laptop (£1,200), a smartphone (£1,000), a tablet (£600), a smart watch (£350) and headphones (£250). Excess is £75 per claim.
In August 2026 the consumer drops the smartphone, cracking the screen. They report the claim, send the phone to the panel repairer, who repairs the screen and returns the phone. The repair cost of £230 is paid by the insurer; the consumer pays the £75 excess. Net payment by insurer: £155.
In December 2026 the laptop is stolen from a coffee shop while the consumer briefly leaves it on a table to collect their order. The insurer declines the claim under the unattended items exclusion. The consumer escalates to the Financial Ombudsman Service, which upholds the insurer’s decision on the basis that the exclusion was clearly worded and the leaving of the laptop unattended in a public place fell within the exclusion.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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