The modern American home is smarter than ever, voice assistants, smart locks, cameras, connected thermostats, and even internet-enabled refrigerators have become everyday conveniences. But as our homes grow smarter, they also become more vulnerable to cybercriminals. This rapidly evolving threat landscape raises the question for every homeowner: How can you protect your smart home from hackers, and does your homeowners insurance have you covered?
Every device you connect to your home Wi-Fi from security cameras to smart bulbs, creates a potential entry point for hackers. Cybercriminals target smart devices to gain access to sensitive information, monitor daily routines, manipulate devices (like unlocking doors or turning on your stove), or even use them as launching pads to access bank accounts and personal files on connected computers.
Alarmingly, some incidents have crossed into real-world danger. There have been cases where criminals took control of smart devices like security systems and locks, even demanding ransoms for restored access. In one notable scenario, hackers broke into smart irrigation systems and caused thousands of dollars in water damage to American homes.
Most traditional homeowners insurance policies focus on physical losses, such as fire, theft, or weather damage. Digital breaches, identity theft, or ransomware attacks are rarely included, creating a critical coverage gap for today’s connected households.
Americans lost over $4.2 billion to cybercrime yearly, according to the FBI’s Internet Crime Report, a figure that continues to grow alongside the popularity of smart home devices. Many insurers now offer home cyber protection coverage as an add-on or separate policy, which can cover:
Ask your agent at Jack Stone Insurance Agency which coverages are available to shield not just your home, but also your digital life.
Change default network names and passwords. Default credentials are a favorite target for hackers.
Enable strong encryption (like WPA2 or WPA3) on your router to scramble your data.
Create a separate “guest” network for your smart devices to limit the damage if one device is compromised.
Avoid reusing passwords across devices.
Create long, complex passwords—use a mix of letters, numbers, and symbols.
Consider a reputable password manager.
Whenever available, turn on MFA for both smart devices and user accounts. This means a hacker would need more than just your password to gain access.
Regularly install firmware and software updates for all smart devices, routers, and apps. Outdated software can have vulnerabilities that hackers exploit.
If your device no longer receives updates, it’s time for a replacement. Unpatched devices are soft targets for cyberattacks.
Install comprehensive security protection on computers and smartphones. Look for features like firewalls, intrusion detection, and device activity monitoring.
Periodically check device logs for unusual activity.
Set up alerts on your home security system to flag unauthorized actions.
The threats are not hypothetical. In the US, families have experienced hackers blaring threatening messages through smart speakers, manipulating thermostats, and spying through baby monitors. In apartment complexes, smart locks have been breached, sometimes leading to physical break-ins or ransom demands.
While personal vigilance is essential, insurance is your backstop for when safeguards fail. Talk to your agent at Jack Stone Insurance Agency about:
What*** is*** and isn’t covered by your existing homeowners’ insurance in regards to digital threats.
Cyber protection add-ons that defend against losses like online fraud, data restoration, or unauthorized use of smart devices.
With the right combination of smart habits and robust insurance, you can have mental safety knowing both your physical property and your digital world are protected.
Where everything is connected, safeguarding your home means guarding against evolving cyber risks with innovative insurance solutions tailored to your unique needs. For comprehensive protection and peace of mind, contact us today to get in touch with a trusted insurance professional at Jack Stone Insurance Agency.
Call us directly at (925) 392-8365 and let us provide you with personalized coverage that truly protects your home and digital life.
Coverage depends on your policy; most standard homeowners insurance excludes cyberattacks, but add-on cyber protection may provide coverage.
Consider replacing the device with a model from a vendor known for frequent updates and strong ongoing cybersecurity support.
Smart TVs, smart plugs, and DVRs have more vulnerabilities, but any internet-connected device can be a potential target.
Look for strange device behaviour - unexpected activity, high network usage, or settings changes may indicate unauthorized access.
