How is my computer warranty covered in my insurance loss?

These days many people purchase warranties on their computers.  When purchasing a new machine, to prevent against loss, damage, etc. many times a warranty like AppleCare (for MACs) is purchased.

In the event of an insurance loss this warranty is covered by the policy.  The remaining months are pro-rated as evidenced by the excerpt below from National Underwriters.

Businessowners — Value of a Warranty Included in Replacement Cost?


My client is insured under a businessowners policy, form BP 00 02 12 99. Her laptop computer was damaged, and the loss was covered by the BOP policy. I think the value of the warranty on the damaged laptop should be included in the settlement, but the insurance company adjuster disagrees.

Should the value of the warranty be included or not?

Ohio Subscriber


The value of a warranty should be included in the replacement cost valuation of a damaged object. Insurance policies are contracts of indemnification. As such, the policyholder should be placed in the same condition after the loss as before the loss. The adjuster may want to pro-rate the value of the warranty, but it should be considered.

The next time you find yourself with an insurance loss, contact AJR Public Adjusters immediately.  (602) 795-5227.  We will help you report your claim and take over,  relieving your stress and handling the claim for you.  Engaging AJR ensures that no coverages are missed and your claim settlement is maximized.

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Local AZ Public Insurance Adjuster with over 35 years experience, representing property/business owners with insurance claims to maximize recovery after a fire, water loss, theft, hail, etc. Always No Fee for initial consultation!!

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