Corey Stokes

The worst thing you can do when you are struggling with money is to go into debt. That, however, is what the popular advice tells us to do. When I joined the military, one of the first things I was told was to “have a credit card for emergencies.”

But I quickly learned that I couldn’t handle that responsibility. At that time in my life, I lacked a financial buffer, so everything felt like an emergency. The easy solution to a lack of funds is to qualify for more credit, but that only solves the immediate symptom, not the big problem. Even when I began to struggle, financial advisors suggested I open a new card. They were prescribing more of the poison as the cure.

The MacBook Disaster: An “Emergency” Test

Recently, my wife and I decided to save up and switch from PC to Mac. We had lived credit card debt-free for several years and were proud to finally purchase a MacBook Air. A short time later, during the hustle and bustle of a busy day, I spilled coffee on the keyboard. It began to spark as the liquid seeped through the internal components.

Just like that, our brand-new investment was dead. This was the last model Apple made with regular USB ports, and because I was confident in my gear, I hadn’t purchased AppleCare.

I called Apple for a repair quote. The representative told me it would cost $900 to fix. Since a brand-new replacement was $1,200, I was at a crossroads. I had to ask myself: Is this an actual emergency?

In the past, I would have panicked and reached for plastic. Apple even suggested I apply for an Apple Card to fund the replacement. But because we had a small savings buffer, the “emergency” lost its power. It was a problem, yes, but not a crisis. While I was leaning toward the cheapest repair option, I remembered a better way to protect my tools: insurance.

How the “Computer Rider” Works

Many renters’ or homeowners’ insurance policies include a “computer rider.” This is a specific add-on that covers hardware against accidental damage—like coffee spills. In my case, this addition only costs an extra $2 per month on my insurance bill.

Of course, you need to have it before you need it. I learned about this strategy from Robert Kiyosaki, who emphasizes that the wealthy insure their assets. By protecting the tools I use to generate income, I ensure that a mishap doesn’t stall my progress.

I saw the “cost” of missing this protection when working with a client recently. Her computer system failed, and it could have been replaced for $500. Her first instinct was to make payments on a new system—adding more debt to her plate. If she’d had a $1,000 emergency buffer, she could have replaced it outright. Better yet, if she’d had a computer rider in place, she could have replaced it for the cost of a small deductible.

Turning a Crisis into a Claim

When I realized my own MacBook was covered, the process was straightforward. I filed a claim, provided my receipt, and explained the damage. Because I had the rider, the insurance company covered the replacement cost minus my deductible.

What could have been a $1,200 blow to our savings—or a multi-year debt obligation on a credit card—became a manageable claim. I immediately called my client back to share this, but for her, the damage was already done. She didn’t have the rider in place.

Even if you aren’t using your computer to generate income, it likely holds vital information and serves as a primary tool for your daily life. Taking the “intelligent” route means looking beyond the credit card and toward your insurance policy.

In the grand scheme of things, $1,000 is not a lot of money. However, when you are going through a hard financial time, $1,000 feels like an impossible mountain to climb. By spending $2 a month on a rider and keeping a small deductible in an emergency fund, you ensure that a sparking keyboard is just a bad day, not a financial disaster.