Beyond the Warranty

• When you purchase a new cell phone, the manufacture often provides a warranty that can last up to a year and covers malfunctions in the phone caused by manufacturing issues. Phone insurance covers failures and a problem with your device beyond the warranty or after the warranty expires.
  
  

Lost and Stolen Phones

• If you lose your phone or the phone is stolen, you can receive a replacement device if you have insurance. Most third-party insurance providers allow you to file a claim online if you no longer have the phone in your possession. Alternatively, you can visit your wireless carrier's retail store to file an insurance claim.
  
  

Damage

• Cell phone insurance covers damage caused by everything from dropping the device and cracking the screen to breaking off a hinge. When you file a damage claim, you must explain the extent of the damage and the cause of the damage or take the device to your wireless carrier.
  
  

Liquid Spills

• Dropping your phone in water or spilling even a small amount of liquid on the phone can cause irreversible damage to the device. Most cell phone insurance covers the cost of repairing or replacing a device damaged by water. However, you will need to send in the device to the insurance carrier.
  
  

Limitations

• Wireless companies and third-party insurance providers limit the amount of insurance you can collect in a year. For example, some customers are allowed to make only two insurance claims per year. When you file a claim, you must pay a deductible, which can cost $50 to $125, depending on the device. Also, your replacement device may be a refurbished model rather than a new one.