Is the iPad considered a PDA (for insurance purposes)...?

It's irrelevant because what your insurance company does is their own business.

I think Apple classifies it as an iPad. :-) I've never seen them use the designation PDA for any device - they won't even call a "personal computer" a PC. In any event, PDA is not a legal classification, so your insurance company can fit whatever it likes under that designation, I'm afraid.

In the end, your insurance company is the one that chooses. And they more then likely will not insure the 700$ Tablet Computer

I'm gonna guess that PDA = Handheld

and the iPad is classified as a tablet computer

that said.....the insurance company does what they want

Are you in the UK? Given your name I'm inclined to think you are, in which case it sounds like you have a decent case against them at the Advertising Standards Authority.

The fact they are using an iPad in their advertising, yet specifically excluding iPads when you take out a policy stinks of false advertising, which the ASA will take action against.

It doesn't help you, since at the end of the day they are a private company and entitled to set their policy rules however they see fit, but they're not entitled to suck people into buying their products based on adverts that don't reflect the reality.

If the insurance company is advertising iPad coverage, that's totally different - and I agree, it is misleading to advertise it under their PDA category and then deny coverage based on it.

Another route you can try is see if they will cover it under a computer or if you have it appraised and then have the full appraised value covered thru them.

If they agree to the appraisal of the ipad as a computer, you may need to have renters insurance or just do it thru your mortgage also instead of these people.

Good luck. It does seem like misleading advertisting... if you could post the pictures for us to see, you might get better advice here, but I think you'll have to take it to a higher authority. :-)