Explore the pros and cons of smartphone insurance for rooted phone users. Learn about coverage options, common exclusions, and the risks of data loss. Owners of rooted smartphones enjoy a whole world of customization options. They can install rare or oddball apps and live to tell the tale to other rooting enthusiasts. Unless they face a security issue. Rooted phones are more vulnerable to intrusions, data theft, and malware. And if the worst happens, many rely on insurance policies. However, as with any insurance policy, smartphone insurance comes with a list of dos and don'ts. Given the risks and complexity of personal data security, it's worth starting with a question: Is smartphone insurance worth it for rooted phone users?

Mobile Phone Insurance Sounds Like a Great Idea

A mobile insurance policy aims to cover the cost of replacing your phone if it gets stolen or lost. It also covers damage to your device. In theory, it's a good idea to get cover if you're prone to phone mishaps. If you live in an area where theft is a problem, insurance is a very attractive option. Doubly so if you own an expensive phone that you would be hard-pressed to replace. If you're locked into a long-term contract with a carrier, you may not have many options. If you run a business on your phone, you can't afford to wait. You don't want to be forced to downgrade to a cheaper phone because you're in a hurry to get your comms back. That's when you need an insurance policy that offers rapid replacement with a new device or a loan phone.

Mobile Phone Insurance Has Some Drawbacks

Wherever there's insurance, there are exclusions. Many policies are hardly worth the cost. They contain so many exclusions that it's tough to lodge a successful claim. And even when they step up, you may still be out of pocket.

Most Standard Insurance Companies Will Cover:

  • Accidental, unintentional damage to a phone, for example, a cracked screen or broken camera.
  • Replacement in case of theft or if it's damaged beyond repair. Some may replace it with a lesser model. Some won't replace it; they will only repair the device.
  • Mechanical failure, for example, if the charging port or an internal component stops working. Mechanical failure coverage does not cover wear and tear. They might also reject a claim if you failed to do routine maintenance.
  • Liquid damage from accidental spills or exposure to moisture. But that's not a green light to go swimming with your phone. Some insurance companies specifically exclude liquid damage, or may penalize you for being careless if it happens more than once.
  • The replacement cost of paid apps, games, music, and books. The insurance premium may be higher. They also usually cover the cost of phone accessories if you specify any. Be sure to keep proof of purchase, or you can't claim it.
  • The cost if a phone thief used your phone to run up a big phone bill by calling premium phone numbers.

Common Exclusions From Standard Policies:

  • Insurers prefer the cover to start as soon as possible after purchase. Most won't cover devices after you've owned them for longer than six months. You might battle to get insurance coverage for a second-hand phone without paying a premium.
  • Mishaps should be covered, but carelessness or outright negligence may cause the insurer to reject your claim. Leaving your phone in an open view on a car seat or in the fitting room is called "theft while unattended." Your claim will be rejected.
  • Report theft to the authorities and file a claim as soon as possible. Delayed filing or reporting can cause the insurance company to reject the claim.
  • If you don't disclose pre-existing issues or conditions, including the fact that the device has been rooted, claims might be rejected later.
  • Insurers might require proof that you've used the phone on a network. They might ask for evidence from a carrier that shows the phone's IMEI number and activity.
  • Some insurance companies won't pay if someone outside your immediate household caused the damage or loss. If a friend borrows and breaks it, you can't claim it.
  • You can't claim costs arising from deliberately harming, for example, if you tried to repair the phone yourself or "dropped it hard against a wall."
  • If an unauthorized repair shop fixes your phone - even a cracked screen - the insurer often rejects claims.
  • The costs of data loss can exceed the cost of replacing your phone several times over. Phone insurers don't cover the costs of data loss.

The Unexpectedly High Cost of Data Loss or Theft

Phone thieves (or the lucky finder of a lost phone) can do far more damage than the cost of replacing a handset. They could get access to your personal and financial data. Thieves can go on a shopping spree using stored payment apps like Google Wallet. They could max out credit cards and clean out your savings account using your banking app logins. And when they're done, they'll sell your stored passwords and other sensitive information on the dark web. They can use your device to impersonate you using your one-click social media logins. Your contact lists can be a goldmine for cyberattackers' phishing campaigns. While your friends and family may usually be careful about clicking on links from unknown sources, they will click on links from you. That could expose their login credentials and other sensitive information. If you use your phone to access work emails and files, hackers may use the phone to gain a toehold in the company network. That could result in a company data breach of work emails and client data. And, fairly or not, if cybersecurity investigators find that a rooted phone served as the entry point, you could become an easy scapegoat for the debacle. Rooting enthusiasts should seriously consider taking out online fraud insurance. It gives you access to expert help in case of a data breach. It should also cover the costs arising from mitigating the theft of personal and professional data. If your passwords show up on the dark web later on, real-time incident monitoring may give you some warning before another cyberattack.

Beware The Rooted Insurance Rider

Owners of rooted phones must be aware of a single factor that could cause the rejection of almost any phone insurance claim. After you've worked your way down the list of 'normal' exclusions, you must face another one. Most phone insurance companies will carefully examine claims involving a rooted or jailbroken phone. They may pay the claim if the phone was stolen or lost. However, performance-related claims will likely be rejected, as rooted phones can experience performance issues. Apple's policy appears to be the industry standard. They demand disclosure of unauthorized modifications and non-Apple services. They may refuse service and are not responsible for damage during the repair process.

Viable Alternatives to Smartphone Insurance

If you decide not to take out mobile phone insurance, there are a few alternatives. You could add your phone to your household insurance, or get insurance from your bank. However, always read the fine print. If you need a fast handset replacement, make sure your policy includes it. Check that the excess is not too high if you make a claim. Also, check the limits on the number of claims you can make in a year. An insurance company may also cap the maximum payout per claim. The final alternative is to build an emergency fund with enough money to replace your phone. Add a generous margin to cover additional expenses. Make sure you can access funds quickly in an emergency, and consider cyberattack insurance to cover the potentially disastrous consequences of data loss.