Two of the most popular forms of protection include home cyber and identity theft insurance
The Federal Trade Commission received 4.8 million reports of identity theft in 2020– a 45% increase from 2019. As technology continues to involve, so do cybercrimes. Even those who don’t actively use the internet are at risk. It’s essential to protect yourself against the inevitable threat of fraud.
Let’s explore home cyber insurance vs. identity theft insurance to understand better how you can benefit from the two. We’ll also answer the question, “do you need personal cyber insurance?”
What Is Home Cyber Insurance?
Home cyber insurance is not a standalone insurance policy; instead, it’s a rider that you can add to your homeowners’ insurance. This insurance coverage protects you from all sorts of threats – data breaches, blackmailing, phishing, and malware. If you accidentally click on a link that gives your computer a virus, home cyber insurance would cover the cost of removing the virus.
Your home computer isn’t the only piece of technology that fraudsters can access. Bad actors can install viruses on home security systems, tablets, smart locks, and so forth. Technology that connects to your home Wi-Fi network often has a higher risk of being compromised.
Insurance companies that offer home cyber coverage can help you recover from a cyber-attack and return to business as usual. However, having home cyber insurance doesn’t mean you can ignore standard safety protocols. For example, you should always be mindful of installing new applications or clicking links in suspicious links. Not only that, but you should create strong passwords that make it harder for fraudsters to hack your accounts.
The Benefits of Home Cyber Insurance
- Protection against the costs associated with cybercrime
- Relatively inexpensive
- Up to $100,000 or more in coverage
- Access to support from cybercrime professionals
- Covers everyone in your family living in the home
What Is Identity Theft Insurance?
You can also easily add identity theft insurance to your homeowners’ policy. This coverage is relatively similar to home cyber insurance but focuses on the recovery process after one becomes a victim of identity theft. Identity theft insurance policies reimburse stolen funds, alert you if someone else uses your social security number, and monitor your credit reports. Some policies may even go as far as to notify you if someone commits a crime in your name and monitor your 401(k) account.
Your credit card and the bank may provide similar protection, but it likely isn’t sufficient. For example, imagine that someone in another state purchased a $500 gift card using your debit card. Your bank alerts you because it suspects the transaction is fraudulent. However, when your bank contacts you, the funds are no longer in your account. Moreover, there’s no guarantee that the bank will compensate you for the stolen funds.
On the other hand, identity theft insurance proactively monitors your accounts and alerts you if there’s a security threat. Simply put, you can’t solely rely on protection from your financial institution and credit card company. It’s clear to see that the benefits of identity theft insurance are endless. As cybercrimes increase, you can’t go wrong with an identity theft insurance policy.
The Benefits of Identity Theft Insurance
- Proactive monitoring of your credit score, SSN, financial accounts, and more
- Receive compensation for funds stolen by cybercriminals
- Restore your stolen identity with the help of experts
- Receive timely notifications if someone tries to use your personal information
- Protect your reputation and financial health
Do You Need Home Cyber Insurance and Identity Theft Insurance?
Home cyber insurance and identity theft insurance have a few overlapping elements, but the two offer unique types of critical coverage. Both are relatively inexpensive, and you can add the two policies to your homeowners’ insurance. The essential difference is that identity theft insurance protects your personal information. In contrast, home cyber insurance protects the technology inside your home. Therefore, it’s an excellent idea to get home cyber and identity theft insurance for maximum protection. Some people also wonder, “do you need personal cyber insurance?” Remember, home cyber insurance and personal cyber insurance are the same. Some insurance companies may use one verbiage over the other, so reading what the policy covers before purchasing it is essential.