Does My Home Insurance Cover Cyber Fraud?

It’s a fair question. With cybercriminals increasingly targeting the public, you might wonder as to whether your home insurance would cover any financial loss if you fall victim to a scam.

From online banking and shopping to smart speakers and connected doorbells, we’re more exposed to cyber risks than ever and it only takes one slip-up to get caught out. So, does your home insurance have your back if something goes wrong online?

The short answer? Sometimes, but it’s not standard.

Most home insurance policies are built to cover physical damage like fire, theft or flooding. They’re not designed to protect against digital threats. That means if you fall victim to a scam, have your identity stolen, or your bank account hacked, your standard policy probably won’t help.

Cyber fraud comes in many forms from phishing emails, ransomware attacks and hacked smart devices to someone accessing your personal data and using it to commit financial fraud. These are serious risks, but they’re often excluded from traditional home insurance.

If you’re worried about online threats, it’s worth checking with your insurer to see what’s available. The right cover could make all the difference if the worst happens.

What can I do to protect myself against a cyberattack?

Start with prevention

Use strong, unique passwords and switch on multi-factor authentication wherever you can. Be cautious with emails, texts and social media messages, if something looks suspicious, don’t click. Keep your antivirus software up to date and avoid using public Wi-Fi for anything sensitive.

Act quickly if you’re concerned

If you think you’ve been targeted, disconnect your device from the internet to stop any further damage. Contact your bank straight away and report the incident to Action Fraud – the UK’s national centre for cybercrime reporting.

Secure your accounts

If you have been targeted, once you’ve secured your accounts and device, run a full antivirus scan, change your passwords, and check your privacy settings. It’s also worth reviewing and refining which apps and devices have access to your data.

Is your business cyber secure?

While you can’t control everything your people do at home, you can make sure they’re equipped to stay safe online. That means regular cyber awareness training, securing work devices, and having the right insurance in place if something goes wrong.

Talk to the team at Towergate today to find out how cyber cover can help protect your business. Just give us a call on 0330 029 5626 or visit our dedicated cyber insurance page.

About the author

Marc Rocker, Head of Cyber has been with Towergate for over 15 years advising commercial clients of all sizes on their business insurance needs.

As Head of Cyber Insurance, Marc has responsibility for ensuring that the advice and products that Towergate provides meet clients’ needs. Marc is a member of the British Insurance Brokers’ Association (BIBA) cyber technical committee.

Sources

• aggettainsurance.com/will-my-home-insurance-policy-cover-damages-caused-by-cyber-frauds
• What to do if you're a victim of malware

 

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.