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Theft and damage protection
You purchased an iPad to take with you on your overseas vacation. And then, when you weren't looking, a thief swiped it. Good thing you bought the gadget with your credit card.
If your item isn't already covered by other insurance plans, chances are your credit card will cover the replacement costs. The card networks all offer replacement policies on items damaged, lost or stolen within 90 days of purchase. Exclusions and items not covered are similar to the extended warranty plans.
Here's a look at the standard purchase protection policies:
- American Express: Maximum coverage is $1,000 per occurrence and up to $50,000 annually. (Premium cards have a $10,000 per occurrence cap.)
- Discover: Maximum coverage is $500 per occurrence and up to $50,000 annually. Insurance doesn't apply for items stolen from a vehicle, personal property or a public space when the cardholder "fails to exercise due diligence."
- MasterCard: Good on eligible MasterCard cards. Maximum coverage is $1,000 per occurrence and up to $50,000 annually. Insurance doesn’t apply for items "that mysteriously disappear without any evidence of a wrongful act."
- Visa: Good on eligible Visa Signature cards. Maximum coverage is $500 per occurrence and up to $50,000 annually.