Operators and insurers vie for phone business

Mobile phones are a thief's dream: valuable, portable and accessible in the pocket or handbag of almost everyone. This fact has not been lost on the Republic's mobile phone networks, all three of which dangle their handset insurance policies under the noses of new customers when phones are being sold.

What the mobile operators don't tell us, however, is that there is another option, albeit for homeowners only.

Many home insurance policies will offer some form of cover for mobile phones. You just need to look at the small print.

The benefits offered by the operators are fairly consistent. Eircell last week introduced a new insurance package for mobile phones, which, for the average customer, will cost £3.99 (€5.07) per month, or £47.88 per year.

This includes the rapid provision of a replacement phone in the event of loss or theft, as well as coverage of up to £500 for rogue calls made after the phone has been lost or stolen.

Digifone offers a similar package to contract customers: £4 per month and a replacement handset within the same brief period. Again, unauthorised calls are covered.

Meteor customers can sign up for comparable insurance at £30 per year but without rogue call coverage.

While home insurance policies will never match the benefits of a policy specifically tailored to mobile contracts, they often offer limited coverage at a much cheaper rate.

Royal & Sun Alliance, for example, offers mobile phone coverage to holders of its Safehome policy and will reimburse theft or loss victims according to the value of the phone in question. Follow-on calls, however, will not be covered and a replacement phone not offered.

Equally, a home insurance policy with the AA can include mobile phones at an additional cost of £9 per year if they are specifically mentioned.

Again, unauthorised calls and replacement handsets do not come under the policy.

The point is that when it comes to insuring a mobile phone, alternatives to the operators' packages do exist. It's just a matter of being aware of them.