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Customers flooded State Farm with calls after word got
out that the Bloomington-based insurer would provide coverage for
Apple’s pricey new iPhone. Many, however, met with disappointment. A Kansas resident says that the State Farm office he
contacted received an emphatic no from underwriters in his state; a State
Farm agent in Virginia could not immediately verify whether he could sell
the insurance to his customers.
Customer interest nationwide was sparked by a recent Illinois Times story in
which it was reported that State Farm, unlike most other insurers, would
allow its agents to write personal-articles policies for the devices [see
R.L. Nave, “iNsurable,” July12]. Although the company allows insurance on iPhones to be
sold, local underwriters, who are divided into zones, have discretion to
give an ultimate yea or nay, says Missy Lundberg, a State Farm spokeswoman.
That’s contributed to continuing confusion,
Lundberg acknowledges. Because of a history of negative experiences with
small electronics, State Farm doesn’t cover most cell phones, but the
company does offer coverage on gadgets worth a specified value. “We’re going more by the price, not
what the item is,” Lundberg says, “so it’s hard to say
that we insure iPhones. We insure the amount the iPhone is worth.”
The iPhone retails for $499 for 4 gigabytes and $599
for 8 gigabytes. AT&T, which has the exclusive rights to offer service
to the iPhone, does not offer coverage under its insurance plan for
wireless phones plan. Manufacturer Apple also offers a two-year extended
warranty for the iPhone, costing $69.
Contact R.L. Nave at rnave@illinoistimes.com
This article appears in Aug 9-15, 2007.
