Mar 18, 2021 3 min read

Home insurance policies are not changed often. When they are, it is usually because of customer demand, changes in laws or technical advancements.

An estimated 16.7 million people experienced identity fraud in 2017. With just a few bits of personal information, such as your driver’s license or Social Security number, an identity thief can open credit accounts, secure loans or even enter into contracts in your name. By the time it is discovered, you could spend hours trying to repair damage to your credit history and personal information.

Cyber Event, Identity Restoration and Fraud Loss Coverage is an optional coverage to a Homeowners, Renters of Condominium Unitowners policy.

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

When you have an identity fraud case or are the victim of a cyber attack that is covered under your policy, the policy may help you in the following ways:

• Cyber Attack coverage pays for data recovery and system-restoration costs, 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 having a personal case manager assigned to help you recover control of your identity and assist you with correcting your credit history with affected agencies and institutions.
• Identity Fraud Expense Reimbursement will provide for covered expenses as a result of identity fraud. They include costs to obtain credit bureau reports; fees to reapply for loans, grants or other credit instruments; telephone and postage fees; notary and certain legal fees; payments for deductibles or service fees from financial institutions and other costs to recover control over your personal identity; and lost wages and child and elder-care expenses cause by identity fraud.
• Credit Monitoring Service is available in case you experience a situation that increases your risk, such as losing your purse.
• Fraud coverage helps to protect you if you have been a victim of a fraud event. Events include identity fraud, miscellaneous frauds and intentional and criminal deception to induce you to part voluntarily with something of value (scam artist).

I doubt that many of the 16.7 million people who experienced identity fraud in 2017 ever thought it would happen to them. I am sure they would be, like me, not sure what to do. The security of knowing someone else who is trained in dealing with identity fraud is well worth the cost.

This subject required more information than I thought, so my next column will focus on customer-driven home insurance policy changes.

As always, if you have questions, reach out to your insurance agent.

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

To submit columns on financial planning, investing or business-related matters, email Rick Shrum at rshrum@observer-reporter.com.