Adding Fraud Protection to Home Insurance Worth the Cost | Business

Home insurance policies don’t change often. When they are, it is usually because of customer demand, changes in laws or technical advances.

An estimated 16.7 million people experienced identity fraud in 2017. With just a few personal information, such as your driver’s license or social security number, an identity thief can open credit accounts, get loans or even enter into contracts on your behalf. By the time it’s discovered, you could be spending hours trying to repair the damage to your credit history and personal information.

Coverage for Cyber ​​Events, Identity Restoration and Loss of Fraud is optional coverage under a Homeowner, Condominium Tenant policy.

This coverage protects not only your personal identity, but also all residents of your household who are parents, or under the age of 21 and in your care, and anyone for whom you are legally responsible.

When you have an identity fraud case or are the victim of a cyberattack covered by your policy, the police can help you in the following ways:

  • Cyber ​​attack coverage covers the costs of data recovery and system restoration, such as the direct result of a cyber attack involving a computing device.
  • Cyber ​​extortion coverage pays for professional assistance from a subject matter expert and cyber extortion response costs.
  • Identity Restoration Case Management service may involve the assignment of a personal case manager to help you regain control of your identity and help you correct your credit history with relevant agencies and institutions.
  • Reimbursement of Identity Fraud Fee will cover expenses covered as a result of Identity Fraud. They include the cost of obtaining reports from the credit bureau; fees for reapplying for loans, grants or other credit instruments; telephone and postage costs; notary and certain legal fees; payments of deductibles or service fees from financial institutions and other costs to regain control of your personal identity; and lost wages and child and senior care expenses caused by identity fraud.
  • The credit monitoring service is available if you come across a situation that increases your risk, such as losing your purse.
  • Fraud coverage helps protect you if you’ve been the victim of a fraudulent event. Events include identity fraud, miscellaneous frauds, and intentional and criminal deception to trick you into willingly parting with something of value (scammer).

I doubt that many of the 16.7 million people who experienced identity fraud in 2017 ever thought it would happen to them. I’m sure they wouldn’t know what to do like me. The security of knowing someone else who is trained to fight identity theft is well worth the cost.

This topic needed more information than I expected, so my next column will focus on client-driven home insurance policy changes.

As always, if you have any questions, contact your insurance agent.

Bob Hollick is a Washington-based State Farm insurance agent. His column appears every other Thursday in the Observer-Reporter.

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