Why device protection beats home contents cover

Retailers sometimes hesitate to offer device protection because they assume customers are already covered by their home contents insurance. In practice, that cover is often limited when it comes to electronics. Dedicated device protection is built for phones, laptops and other devices, and retailers, as well as manufacturers that sell direct, are well placed to offer it.

Below, we compare the two and explain what embedded device protection means for customers and retailers.

Replacement value versus current value

Home contents insurance often pays out the current value of a device, which drops quickly as it ages. Dedicated device protection often covers the replacement value, so a customer whose device is stolen or damaged beyond repair can get a comparable new one, or its value.

Cover after the warranty ends

Some device protection products also cover breakdowns after the manufacturer's warranty has ended. Home contents insurance generally does not cover breakdowns at all.

Cover outside the home

Devices go everywhere: to work, on holiday, on the train. Home contents insurance does not always cover damage or theft outside the home, or only with an add-on. Device protection usually applies wherever the device is, often worldwide.

Dedicated cover versus an add-on

Electronics are not always fully covered by a home contents policy. Accidental damage, for example, is often excluded or only available as an add-on at extra cost, and those add-ons are rarely tailored to specific items. Device protection is designed for electronics, so it fills those gaps and sits alongside a home contents policy rather than replacing it.

Faster, simpler claims

A claim on home contents insurance usually follows a generic process: get a quote from a repairer, file the claim, wait for approval and only then arrange the repair. Retailers that offer embedded protection can do better, with services built around the product: quick replacements, expert repairs in store or at home, or a loan device during the repair. An incident becomes a moment to build trust.

At Computerzaak, for example, Fidamy handles the claim and Computerzaak's own technicians carry out the repair. Claims for phones can go straight to repair partners such as The Phone Lab.

An experience that fits your brand

Embedded protection can be designed around the services a retailer already offers, such as repairs and delivery, so the customer journey stays in one place. With home contents insurance, a claim usually involves several parties and the retailer is not part of it. With embedded protection, the retailer is involved from purchase to repair or repurchase, which keeps customers in its ecosystem.

Why retailers offer device protection

• Differentiation. A service that goes beyond selling the device.
• Loyalty. Customers know they will be looked after long after the purchase.
• Revenue. Commission on every policy, with little added cost.
• A lasting relationship. The retailer stays involved from purchase to repair or repurchase.
• Sustainability. Repairing or refurbishing devices, instead of defaulting to a cash payout, keeps electronics in use and out of the bin.

Protect your customers and grow your business

Embedded device protection offers clear advantages over home contents cover, from replacement value and cover outside the home to claims built around the device. For retailers and manufacturers, it strengthens customer relationships, sets the brand apart, adds revenue and supports more sustainable choices.