According to a report by Internet security firm Kaspersky Lab, in what could be one of the largest bank heists in history, more than 100 banks and ATMs have been rigged so that thieves could steal up to $1 billion in cash.

Hackers from Russia, Ukraine, China, and Europe were involved in the organized crime ring that was just recently exposed. The hackers installed spying software on bank computers, studied bank employee workflows to learn how to mimic their actions, and used their knowledge to transfer money into bank accounts set up in other countries.

While the report did not name specific bank institutions, it stated that financial institutions in at least 30 countries were affected, including the United States.

We all know that identity theft is the act of taking someone’s personal information and using it to impersonate a victim, steal from bank accounts, establish phony insurance policies, open unauthorized credit cards or obtain unauthorized bank loans.

What many people don’t realize, though, is that 7% of all U.S. citizens will be victims of identity theft over the next 12 months resulting in over $50 billion in costs.  Identity theft is also a long, arduous process for victims as they try to repair their credit, erase erroneous collection accounts, and restore their lives.

Did you know that many homeowners insurance policies actually offer some form of identity theft as part of the policy?  You can find out more about this coverage, its cost, and provisions within the rest of the article below.

If you would like to see if your policy includes identity theft coverage or would like to receive quotes on this coverage, please feel free to give our office a call.

Identity Theft Insurance

What is it? 
Some insurance companies now include coverage for identity theft as part of their homeowners insurance policy.  Others sell it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy.

What does it cover? 
Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports. It generally covers expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the insurer’s prior consent). Some companies also offer restoration or resolution services that will guide you through the process of recovering your identity.

What does it cost? 
Some insurance companies will include identity theft coverage for no additional cost.  However, most will charge anywhere from $25 to $100 annually for the additional insurance coverage.

Tips for Avoid Identity Theft

• Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card, or passport unless necessary.

• Always take credit card or ATM receipts. Please don’t throw them into public trash containers; leave them on the counter or put them in your shopping bag where they can easily fall out or get stolen.

• Do not give out personal information. Whether on the phone, through the mail, or over the Internet, don’t give out any personal information unless you have initiated the contact or are sure you know who you are dealing with and that they have a secure line.

• Proceed with caution when shopping online. Use only authenticated websites to conduct business online. Before submitting personal or financial information through a website, confirm the site is secure.

• Make sure you have a firewall, anti-spyware and anti-virus programs installed on your computer. These programs should always be up to date.

• Monitor your accounts. Don’t rely on your credit card company or bank to alert you of suspicious activity.

• Order a copy of your credit report from each of the three major credit bureaus. Make sure it’s accurate and includes only those activities you’ve authorized.

• Shred any documents containing personal information such as credit card numbers, bank statements, charge receipts, or credit card applications before disposing of them.

Safe Boating Tips

Protection Beyond the Usual
While it’s easy to assume that only a rich person could need that much insurance coverage, you’d be surprised at how important an umbrella policy can be for an average member of the middle class. For example, if you have a car insurance policy with liability coverage, you may think you have enough protection in case of an accident. But a lawsuit could quickly exceed the $100,000 or $300,000 insurance payout.

An umbrella policy provides an additional insurance layer, typically $1 million or $2 million, above your auto insurance and your home insurance liability coverage. Consider the following scenarios where an umbrella policy would have been helpful:

• A $1.2 million settlement in New Jersey where an underinsured driver hit a policeman who was completing paperwork at a traffic stop. The driver had to pay legal fees for his defense as well as the settlement.
• $1.76 million was awarded to a mother and her 8-year-old child in Florida after a wave runner accident injured both of them. The mother needed corrective surgery after the initial injuries were treated.

Although 85 percent of umbrella insurance claims are related to car accidents, the policies offer protection against accidents that occur at your home, too. For example, if someone falls down your stairs and sues you, or your balcony collapses during a party. Many people opt for an umbrella policy because they have a pool or a trampoline on their property and fear the consequences of a child getting injured.

Then there’s coverage for incidents you may not have even considered, such as accidents while you’re driving in another country or while you’re on vacation and have rented a boat or Jet Ski.

Another important feature of these policies is protection in a lawsuit against you for slander or defamation of character or for decisions you might have made as a volunteer member of a nonprofit board. If you regularly blog about controversial topics or rant on Facebook, an umbrella policy might be a good idea to protect your assets from a litigious individual who believes you’ve damaged their reputation.

That may sound unlikely, but it’s not unheard of. In 2009, a high school student sued four other students and their families for $3 million because of derogatory comments the other students made about her on Facebook. While the lawsuit was eventually dismissed, reaching that verdict took two years and required considerable expenditures by the families. An umbrella policy can cover expenses related to such lawsuits.

You Have More to Protect Than You Think
You may be assuming that if you don’t have $1 million to lose, you don’t need an umbrella policy. Unfortunately, if you are sued by someone who falls down the stairs at your home or whom you injure in a car accident, you can be sued for more than just what you have in the bank.

Your retirement funds, investments, savings, and even your future earnings are at risk if a judge allows someone to garnish your wages to pay off a settlement. In some states, the equity in your home can be part of the judgment, and you would be forced to sell your home to pay someone who sues you.

If you own a house and have a retirement account or other investments, an umbrella policy of $1 million or more should be part of your financial plan. Most insurance companies offer these plans in increments up to $5 million, and some go up to $10 million.

Insurance companies require specific levels of liability coverage on your auto and home insurance policies before they will approve an umbrella policy, typically:

• $300,000 per occurrence for personal liability, bodily injury, and property damage liability on your homeowners insurance policy
• $250,000 per person for bodily injury and $500,000 per accident on your car insurance policy
• $100,000 per accident for property damage on your car insurance policy

The average cost for a $1 million policy is $200 annually — which you might find a relatively low price for the peace of mind and security it offers

Exclusions listed in a personal auto insurance policy vary depending upon what state laws permit and then your car insurance company’s guidelines.  When something is noted as excluded from your policy, it means that your policy won’t cover it.

Exclusions can be associated with a person, property, location, peril, or specific situation.

These limitations to your coverage are important to know so that you don’t end up in a situation where you find out after an auto accident that you have no coverage — or have voided your policy.  (Remember, if your policy doesn’t cover you, then you’ll be stuck paying out-of-pocket usually.)

The most common exclusion regarding a person is a named driver exclusion.  With this, you and your insurer agree to exclude a specific person from your policy’s coverages.  This driver isn’t rated on your policy, and in return, your insurer won’t cover the individual if found driving your car.

Here’s a look at some of the most common exclusions found in the different parts of a personal auto insurance policy.

Bodily and property damage liability exclusions

Most policies plainly state they don’t provide liability coverage:

• If an insured has intentionally caused injury or property damage.
• For property damage to property owned (or being transported) by the insured.  (So if you hit your own car, you can’t make a liability claim)
• For property damage to property that is rented, used by, or in the insured’s care.
• For bodily injury to the insured or any insured family member residing in the insured’s household. (Some states only allow the policy to reduce the bodily injury limits for family members to the state’s minimum)
• For liability arising out of the vehicle’s ownership or operation being used for “livery conveyance.”   This means using your vehicle to transport goods or people for payment – so don’t use your car as a taxi or delivery service.   So, don’t use your car for delivering pizzas, or you may void your coverage.

In general, using your vehicle for business purposes can be a no-no according to your liability policy.  For example, it may say that the business of:

• Selling, repairing, servicing, storing, or parking vehicles (other than your insured vehicles) is not covered by your liability or physical damage coverages.
• Maintaining or using any vehicle that the insureds are using to engage in business –other than farming or ranching – may not be covered.  (If you are using your vehicle for business, see about a business-use or commercial policy)

Catastrophic events or exposures are usually marked as excluded as well.  This can include items such as bodily injury or property damage resulting from:

• Nuclear exposure or explosion – including the resulting fire, radiation, or contamination.
• Bio-chemical attack or exposure to biochemical agents as a result of an act of terrorism.
• War (declared or undeclared)

Vehicles that are excluded from coverage (or deemed unacceptable to cover for either liability or physical damage coverages) vary, but the list may include:

• One with less than four wheels
• Designed for use principally off public roads or not registered for use on public roads
• Any vehicle owned by you or a family member but isn’t listed as insured on your policy.
• Any vehicle furnished for your regular use but isn’t listed as insured on your policy.
• Any vehicle used to compete in a race or practice or preparing for any prearranged or organized racing or speed contest.

Some insurers have amended policies to include an exclusion for any operated, maintained, or used vehicle as part of a personal vehicle sharing program.  So, loaning your vehicle out for a car-sharing service could mean you have no personal coverages.

Physical damage coverage exclusions

Collision and comprehensive coverage are the physical damage coverages offered by auto insurers. At the same time, liability insurance covers those that you damage, collision, and comprehensive cover your own vehicle if it’s damage.
Exclusions under this portion of the policy can be similar in many ways to the restrictions listed in your liability portion of your policy.  Typically, collision and comprehensive coverage exclusions include loss or damage due to:

• Wear and tear
• Freezing
• Mechanical or electrical breakdown or failure
• Road damage to tires
• Catastrophic events – radioactive contamination, nuclear weapon discharge, war, etc.
• Destruction or confiscation by government or civil authorities
• Using your vehicle for livery or delivery purposes
• The vehicle being used for racing purposes
• Intentional damage
• The vehicle used in personal car-sharing programs (some insurers)

Personal items that are damaged in your vehicle or stolen from it aren’t covered, and most policies specifically mention the exclusion of coverage for losses to:

• Any electronic equipment that is not permanently installed.
• Custom equipment (or is covered to a specific minimal amount — such as $2,000) unless you’ve added custom parts and equipment endorsement to your policy.

If a vehicle is excluded from liability coverage, then typically, it’s also unable to obtain physical damage coverage.   However, there is some vehicle that insurers allow to obtain liability but not collision and comprehensive — such as vehicles with a salvage or rebuilt title.

Medical payments and uninsured motorist bodily injury

Medical coverages you can purchase for yourself as part of an auto insurance policy have exclusions as well.  Typically, they include injuries sustained in the circumstances mentioned above, such as catastrophic events, racing or livery service, as well as situations such as:

• Injured on a motorized vehicle having fewer than four wheels
• Injured while using the vehicle as a residence
• Injuries that workers compensation benefits should cover because occurred during the course of work