AS Britons set up their new X-Boxs, Playstations, iPads and other gadget Christmas presents, consumers have been warned over the pitfalls of insurance for their swanky new electricals.
Buying cover for a new laptop, phone or camera to protect against theft or damage may seem the prudent thing to do, especially when you are carrying around expensive items on a daily basis.
But thousands of people have complained to the Financial Ombudsman Service (FOS) over gadget and mobile insurers wriggling out of payouts, which makes paying premiums feel worthless.
The ombudsman said the most common claims arise from stolen or accidentally damaged items but providers often use tricky contract clauses to reject payouts.
In one case seen, an MP3 player that was stolen from a bag at someone’s feet was rejected for payouts because it was not being held "at arm’s length".
In another, a tablet that broke after slipping out of the consumers' hands was turned down on grounds of ‘gross negligence’.
Policyholders who feel they have unfairly treated by financial providers can complain directly to the FOS.
In both the cases mentioned above, providers were forced to payout after the ombudsman ruled in favour of the consumer.
However, people have been urged to check and take note of the small print on gadget insurance before buying.
Items are excluded from some policies once they are older than six months.
And insurers can also require you to report a loss within just 12 hours of it taking place.
A spokesman for the FOS said: "If you’re spending money on an expensive gadget, phone or tablet, it makes sense to take out insurance to cover you if something unexpected happens.
"But shop around and always check the small print.
"Some insurance policies are better than others. Remember to check for some of things that might happen (loss, theft, damage) and what exclusions the insurer has.
"But above all else, if your claim is turned down and you’re unhappy, the ombudsman can help."
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