AppleCare’s iPhone coverage is limited to hardware issues and technical support; if you drop your iPhone on the sidewalk, you may be out $600, unless you have insurance against accidental damage and theft.

Surprisingly, the niche market has yet to develop specific plans for the iPhone. From The Unofficial Apple Weblog:

As far as coverage through companies like specialized electronics or computer insurance providers is concerned, I had a much harder time finding anything substantial. Most of the companies I spoke with didn’t have policies in place, and only Safeware confirmed that they were “seriously considering” introducing iPhone coverage.

Most traditional insurers, however, would tack an iPhone onto an existing homeowners or renters insurance policy. Allstate, Geico, and State Farm were willing to insure the iPhone for an extra $5-$20 per year, with a $250 deductible that could be reduced to $100 with an appraisal. To take advantage of a traditional insurance plan, you must already be a primary policy holder.

Damaged or stolen iPhones are terribly expensive to replace; insurance might be worth the extra price.

Insure your iPhone, because AT&T won’t [The Unofficial Apple Weblog]
(Photo: globalreset)

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