Filling Holes in Extended Warranties
calendar 06.25.2018 calendar Matt Morelli
One topic that is a part of many discussions we have with districts is how School Device Coverage (SDC) works with, and alongside the extended manufacturer warranties that they’ve already purchased. The answer is only complex, because there are so many variables. Generally speaking, if you carry an extended manufacturer warranty on your devices, you do not have active coverage on loss or theft; your warranty coverage is for one device and does not transfer to any loaner devices; and you may need to pay a deductible to repair any damage that happens to the device.
In instances where a district has an active extended warranty plan, SDC will propose a simple coverage plan to provide loss and theft insurance protection. This gives a district the broadest protection available. Upon expiration of the extended warranty, SDC will open enrollment up for full coverage plans.
For districts weighing the options of purchasing extended warranties or insurance, we believe the following is worth taking into consideration.
  1. Insurance covers all risks.
    • Broken glass screen
    • Charger port failure
    • Theft
    • Broken LED/LCD displays
    • Accidental damage
    • Power surge
    • Fire damage
    • Flood/Water Damage
    • Loss
    • Vandalism
    • Touchscreen failure
    • Electrical failure
  2. Warranty covers manufacturer defects, but most risks detailed above are covered only with a deductible fee assessed.
    • Warranty typically offers no coverage, with or without deductible, on loss or theft.
  3. With insurance, there is no limit to the number of claims filed during coverage term.
  4. Under a warranty, there is typically a maximum limit of claims allowed per coverage term.
In terms of cost, insurance will almost always be less expensive, before even accounting for the cost of filing claims for damage under a warranty. When you put all of the coverage details from both an SDC plan, and a warranty in front of you, it will rapidly become clear that an insurance plan is the simpler, and more economical choice.
Filling the Holes in Extended Warranties