What happens when your iPhone is stolen?

You may be a total loss for your iPhone and its expensive invisible case if you do not read this article.

"I saved money for an iPhone then after a holiday over in Paris we lost over $600 worth of accessories, fees, and the actual phone itself." - Roy, CA

Options for when you lose your iPhone

You are traveling on a vacation to Paris and happen to be in line for a hot tourist attraction when you look down and notice that your phone is missing.  You think to yourself you have only had your iPhone for a week so you could talk on the International GSM network that AT&T is on and of course to use the currency conversion apps and other language apps.  Now you are without a phone and nowhere to turn.  This is not just a typical cell phone that is insured by coverage you can buy from AT&T but it’s a special phone that you cannot buy coverage for.  When you lose your Iphone you purchased from the Apple store you are just out of luck in most cases.

There are some things you can do to plan in advance when you take a trip or if you know you will be in risky places to lose your phone such as a gym.  You can put a sticker on your phone such as a Rewarding Return tag which tells people you will reward them for returning the phone.  At rewardingreturn.com you can pay them $6.99 for a label (kind of large) for the phone that covers two years of returns with no fees and I have seen people in forums talk good about this service saying it has saved them a few times.  The downside is it is tacky to have on the phone and could motivate someone to steal your phone.

According to the Apple insider the State Farm insurance was covering the iPhone on their Personal Articles policy but now we hear they are no longer covering the iPhone specifically.    Then again I read that it must be over $400 or a certain amount so maybe they do you may have to just call them and check for sure.

Safeware is a company that owns insuremyiphone.com which can provide comprehensive coverage against Accidental Damage, Liquid Spills, Power Surge, Drops, Falls, Flood, Fire, Vandalism, Robbery, Burglary and theft.  Yes, finally someone that covers Theft.    They even offer international coverage but the deductable is $200 if you are out of the country.  The deductable is normally $100 for domestic claims compared to $0 from Best Buy and $50 from Square Trade but they are they only company that cover Theft I have found in this niche.

The Safeware also covers theft, fire, vandalism, and flood that Best Buy and Square Trade do not cover.  This comes with no occurrence limits which you will find with insurance companies.  If you compare a 16GB iPhone GS the coverage for 1 year is $82 at Safeware, $96 at SquareTrade, and $180 at Best Buy Geek Squad.

I called up the Safeware representative to ask a few questions and it only took them a few minutes to get on the phone for pre-sales questions.  They said that if you carry a PDA phone you can get $550 or so back on the Blackberry Pearl if they cannot repair the phone or if it is stolen.  You must have a police report done to prove it was stolen though.   Same goes for the Iphone with the police report and reimbursement where you get $400 or $500 minus the deductable of $100.  They do not repair Iphones though so if that phone is in need of repair then you send in the phone and they send you a check for a new phone.  Sounds like a deal to me.

What if you lose your phone and you have no coverage? 

You may be able to use your Visa benefits and make a claim.  If you have a Visa signature card you can get up to $500 in coverage from theft but you must call your credit card insurer to find out the classification your Visa card.  In my case, my Visa was a Chase Freedom Visa which does not have a Signature Card and only covers up to $250 in case of theft.  I filled out the proper forms and they expect almost your DNA samples to make a claim.  You need a copy of the itemized store receipt, copy of transaction card receipt with the purchase transaction, copy of the police report made within 48 hours of the theft, a copy of the insurance declaration page (when applicable).  This is quite a bit of work for a few hundred dollars especially when they are not paying for the replacement but just for the purchase amount which only helps a minimal amount.  You also must call the enhancement services at 800-356-8955 or if travelling internationally collect at 804-673-1691 within 90 days and mail back all of the claim forms or risk denial of the claim.