Cyber Insurance for Smart Homes in Canada

The smart home market in Canada reached over $13.6 billion in 2023 and is expected to grow to over $41 billion by 2030, new data shows. At the same time, cyber attackers are increasingly exploiting these connected devices, putting you and your family members at risk of identity theft, fraud, and dangerous tactics like AI-driven voice-cloning and deepfake scams. Knowing how to protect yourself and your home from cyber incidents is more important than ever. 

What are the Risks of Smart Home Tech? 

Smart home devices, like thermostats, cameras, appliances, speakers, security systems and voice assistants, bring convenience but come with cybersecurity risks:

• Unauthorized access & data theft: Weak or default credentials may allow hackers to view camera feeds or manipulate devices. 
• Network infiltration: A compromised smart gadget can serve as a bridge for malware, ransomware, or data breaches across your home network 
• Pervasive data collection: These devices continuously collect sensitive habits and routines — information that may be misused if intercepted. 
• Emerging vulnerabilities: As 5G and IoT ecosystems expand in Canada, so it exposes millions more connected devices.

How does Personal Cyber Insurance Protect You? 

Cyber insurance fills critical gaps left by standard home insurance policies: 

• Coverage for smart home incidents: Such as a hacked camera, ransomware lockouts, or unauthorized device use. 
• Financial protection: Reimbursement for expenses like data recovery, identity restoration, legal fees, and digital fraud losses. 
• Support services: Ask your broker about a policy that also includes access to cyber experts 24/7 for guidance after a security event. 
• Affordable peace of mind: Personal cyber insurance costs less than you think and offer peace of mind that your home is protected against cybercriminals.

Top Tips to Protect Your Smart Home 

1. Secure your Wi-Fi network: Use strong, unique passwords and enable multi-factor authentication (MFA). Also set up a separate guest network for visitors and third-party devices. 
2. Keep devices and software updated: And replace default usernames/passwords on every new device. 
3. Minimize data collection: Limit how much personal information your devices gather, store or share in the settings and permissions of all smart devices. 
4. Disable unnecessary features: Like voice history, to reduce shared information. 
5. Monitor smart home device activity: regularly review logs and settings; disable unused services. 
6. Invest in personal cyber insurance: Talk to your insurance broker about coverage for smart home incidents to protect your home and family.

Final Thoughts

As smart home technology becomes common, so do the risks that come with it. Cyber threats are evolving and can include hacked security systems, identity theft, and so much more. Standard home insurance coverage might not be enough to keep you safe.

At A-KAN Insurance we provide personal cyber insurance solutions to protect Alberta homeowners from today’s digital dangers. Whether you are setting up your first smart devices or you already live in a fully connected smart home, we can help.

Want to protect your smart home? Speak to our insurance broker today to find affordable coverages for your specific needs.