Unlike a Warranty, these Phone Insurance plans do not have a maximum limit of coverage over the lifetime of the plan that is purchased. If a customer chooses a plan with a $400 Limit for example, then their phone will be covered up to $400 for any incident of Damage or Theft that occurs as long as their coverage is active on a Monthly or Annual Plan.

If a customer has a phone that is worth approximately $700 to replace, they could choose to purchase a $700 Limit plan so that if their phone was stolen, or damaged by water and unrepairable, they’d receive reimbursement up to their $700 limit to replace the phone.

But any customer is also welcome to have a plan with a limit that is less than the value of their phone. For example, if a customer with a $700 phone has a $400 Limit plan, they would still be able to get reimbursed for a screen replacement claim, since a screen replacement is below the $400 Limit.

Be sure your customers understand that it is their decision to purchase a plan with the desired limit of coverage they want. They do not have to purchase a higher amount of coverage just because the replacement value of their phone is higher.