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You find yourself sitting (or standing) in your local cell phone office purchasing a new phone.

"Do you want to purchase equipment insurance for this phone?" will be the inevitable question asked by the representative handling your transaction. "It will cover loss, theft, and damage," will be the response to your question on what it is for. They try to make it sound like a very "good deal."

However, they will often neglect to disclose the finer details. Instead, they should provide you a small print booklet to read (who reads these before they need it?)

Damages caused by misuse may not be covered. How can you misuse a cell phone? Dropping (even accidentally) in water, slipping out of your hand and falling onto concrete, sliding off the dashboard and out the window may not be covered. Damages they attribute to misuse may or may not be covered. Read this fine print so you understand exactly what is allowed.

Misuse, this is a catch-all term they use. Did you know that even if your phone has a difficult charger to connect, using a tiny, fragile plug; damaging this plug during the normal course of connecting for charging may be considered abuse? It can and may result in denial of claims based on your policy's guidelines.

"How will they know if my phone has water damage?" This is a very easy determination for them. Both your cell phone and the battery have indicators that will change color if exposed to water. Beware, though; these can also change color if exposed to very high humidity (such as that from a bathroom during a very hot shower).

Somewhere, usually in the battery compartment is a white dot, white square, or white/red striped (or patterned) decal. If this changes color, you may not be covered and drying it out will not change the color back to original. Watch when you go to a store with claims of non-working phone. One of the first things they do, if not the first, is to pop the battery cover off and check these moisture indicators. Why; if you have moisture damage, they are not obligated to continue troubleshooting and they will switch to trying to sell you a new phone.

READ the policy to ensure you know what is covered and what will not before you have the need to file a claim. If you receive updated documents, read those as well as companies may remove certain types of claims that were previously covered under the old policy. Ignorance of policy changes will not get you a replacement phone, should the need arise.

"For only $4.99 (the typical premium payment

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