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I added my Sony Reader 505 to my State Farm Personal Articles Policy (which covers jewelry, etc) for less than $5 a year. My total Personal Articles Policy which now covers my wifes jewelry, my iPhone4, my Sony Reader, and my MacBook laptop all for around $25 a year total!
If any are stolen, broken (by dropping, etc.) it's covered with no deductible. Check with your insurance company.
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