iPhone – Cell Phone or Electronic Data Processing Equipment?

September 20, 2010

A question has surfaced about the iPhone and the application of Special Limits and Property Not Covered. The question is what limits and/or coverage limitation applies to two iPhones valued at $1,200 each. Our HO policy has a $3,000 limit for electronic data processing equipment and media; and there's no coverage while away from the residence premises.

The policy does not cover “any device or instrument for the transmitting, recording, receiving or reproduction of sound or pictures which is operated by power from the electrical system of motor vehicles or all other motorized land conveyances, including while in or upon the vehicle: (a) accessories or antennas; or (b) tapes, wires, records, discs or other media for use with any such device or instrument. This exclusion does not apply to portable, battery-operated cellular telephones that cannot be operated off of the electrical system of a motor vehicle, or to digital cameras.”

As most cell phones can be operated off the electrical system of a motor vehicle, we usually cover cell phones. We exclude coverage for computers off-premises (except $250 for computers used for business purposes off-premises).

Our question is – how would you treat an iPhone? Is it a cell phone or electronic data processing equipment?

California Subscriber

While an iPhone can do a lot of things, and people use it for everything, it really is a glorified cell phone. The exclusion is attempting to eliminate vehicle equipment that really belongs on an auto policy as extra sound/receiving equipment; the big woofers, tweeters, etc. that folks add. Until someone changes the policy language, we'd cover an iPhone as a cell phone.

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