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Credit Card Purchase Security Insurance

Do you make daily transactions using your credit card? By paying with your credit card, you may actually be protecting the products you purchase. You may be safeguarding yourself against potential loss, theft, or damage when you charge a new item to your credit card. Many rewards credit cards have a variety of insurance options, including buy security insurance. This insurance will cover you if a newly purchased item is lost, stolen, or destroyed, which will undoubtedly save you money. Here's a quick review of everything you need to know about security insurance purchases.

What is purchase security insurance?

For a set amount of time, purchase security insurance protects you against the loss, theft, or damage of new products purchased anywhere in the globe. If you have recently purchased an item that has been lost, stolen, or damaged, you can file a claim to have it replaced or repaired, or to be compensated for the purchase price. To be protected, you must have paid for the purchase in full with your credit card.

It's important to keep in mind that most purchasing security insurance plans have a yearly or lifetime restriction. For instance, your card may have a maximum lifetime benefit of $60,000 on it. This implies you'll only be covered up to $60,000 for the rest of your life. You will not be refunded if you try to claim additional purchases.

What is covered under purchase security insurance?

Purchase security insurance to protect your personal belongings as well as any presents you've received. You must have paid for the item you want to claim with a credit card with purchase security insurance.

What is not covered by purchase security insurance?

There are a few things that credit card purchase security insurance usually doesn't cover. The following items are frequently left out of most insurance policies:

  • Cash or cash equivalents, travellers cheques, tickets, documents, bullion, rare coins, banknotes, negotiable instruments
  • Art objects (such as, but not limited, to hand-made items, limited editions, original, signature pieces, or collectible plates or other numismatic property)
  • Animals, fish, birds, or living plants
  • Consumable or perishable goods such as food and liquor
  • Mail order purchases or purchases made online, until delivered and accepted by you in perfect condition
  • Golf balls
  • Used items, newly purchased that have been rebuilt, refurbished or returned and resold
  • Automobiles, trailers, motorcycles, motorboats, or accessories attached to our mounted on such property, airplanes, motor scooters, snow blowers, riding lawnmowers, golf carts, lawn tractors, motorized wheelchairs or any other motorized vehicles except for miniature electronically powered vehicles intended for children or any of their respective parts or accessories
  • Any and all property items and/or equipment intended for commercial use
  • Services
  • Ancillary costs incurred in respect of an insured item and not forming part of the purchase price
  • Parts and/or labour required as a result of mechanical breakdown
  • Jewelry, gems, watches, and furs or garments transported/stored in baggage that’s not under your personal supervision
  • One-of-a-kind items that can’t be replaced


A claim that is the result of the following will almost certainly be denied by the insurance company:

  • Misuse, fraud or abuse
  • Hostilities of any kind (including but not limited to war, invasion, rebellion, insurrection)
  • Confiscation by authorities
  • Illegal activities
  • Normal wear and tear, or gradual deterioration
  • Loss or damage while undergoing any installation process or while being worked on
  • Insects or vermin
  • Flood, earthquake, radioactive contamination
  • Setting, expansion or contraction, bulging, buckling or cracking, temperature changes, freezing, heating, atmospheric changes, dampness or dryness, evaporation and/or leakage or contents, exposure to light, change in texture, finish colour, rust or corrosion
  • Loss or damage to sports equipment
  • Mysterious disappearance
  • Inherent product defects
  • Products purchased with an unconditional guarantee
  • Willful acts or omissions
  • Indirect, incidental or consequential damages, including bodily injury, property damage, economic loss, punitive or exemplary damages, and legal costs

What is reimbursed in a purchase security insurance claim?

You can submit a claim for any purchase made with your credit card that qualifies. However, the insurance provider's decision on whether to replace, repair, or compensate the item is frequently left to their discretion.


How do you make a travel purchase security claim?

To get the relevant claim paperwork, call your insurance carrier as soon as you learn of any loss or incidence. Most insurance companies demand that you report damage or theft within a certain amount of time (typically 45 to 90 days).

Your insurance carrier may require you to produce one or more of the following in addition to any documents you must fill out:

  • A copy of original store receipt
  • A copy of your credit card statement reflecting the item purchased
  • Original police report or other report to local authorities
  • Estimate of repairs, if applicable
  • Photo of the damaged item, if applicable
  • A copy of the original store receipt for the replacement item, if applicable
  • Serial number, if applicable

The devil is in the details

The most important thing to keep in mind is that the cost of purchasing security insurance varies substantially based on the type of credit card you have. Before relying on your insurance, make sure you know what it covers. Furthermore, coverage is frequently limited to a set amount over the course of your life. You might want to put off filing claims on lower-cost things until you're sure you'll have coverage for higher-cost items when you need it. Finally, keep in mind that you must normally pay for an item with a credit card that includes purchase security insurance in order to be insured.