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Be prepared for PC theft

June 8, 1998
Web posted at: 1:00 p.m. EDT

by Roberta Furger

Summer might be the best time for vacations, but it's also high season for crime. According to the Department of Justice, more burglaries occur in July and August than at any other time. And in any home or business hit, computer equipment ranks among thieves' favorite targets.

Before you embark on this year's getaway, try this little exercise: Add up what it would cost to replace all your hardware and software and then ask yourself, "What have I done to protect my computer investment?" If your answer leaves you feeling nervous, it's time to get your computer house in order.

One of the first items on your to-do list should be a detailed inventory of your hardware and software. Check your records, noting the make, model, serial number, and purchase price of each piece of hardware. Then make a list of your software collection (at least the more expensive packages). Store the list--along with supporting receipts--in a secure location such as a safe-deposit box. (Your meticulous record keeping will be for naught if your only copy is stored on the hard drive of a stolen computer.)

This record will serve two purposes: It will help you determine whether your existing insurance coverage is adequate (more on this later); and if your equipment is stolen, it will let you provide crucial information to the police and your insurance company. Insurance companies treat this information (along with receipts) as proof of ownership, and the police use it to track down stolen goods. Too often, we neglect to keep a record of this vital data.

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Tracking Your PC

Well-maintained records greatly increase your odds of recovering a stolen computer. The National Computer Exchange runs a Stolen Computer Registry, which law enforcement officials throughout the country use to report and track stolen equipment by serial number. Individual consumers can access the database to enter information about their stolen goods or to confirm that used equipment they're considering purchasing isn't hot.

Law enforcement officials recommend labeling all home electronics with your name and address. Attaching permanent identification tags or etching personal information into the back of your valuables makes it harder for a thief to sell them. Marking your hardware also increases the odds of getting your property back if the police recover it. Many local police departments' crime prevention units will lend etching tools to area residents.

Another identification solution is offered by the National Computer Registry. For a one-time fee of $69.95, it will enter data on up to 10 different pieces of computer equipment into its database and send you ID tags for each hardware item. When police recover the items, they will match the information on the tag against the registry's database, reuniting you and your PC.

Once you've inventoried and labeled your belongings, it's time to evaluate whether you have enough homeowner's or renter's insurance coverage. If your home setup consists of a single computer and printer valued at $5000 or less and used almost exclusively for personal purposes, your existing policy is probably fine. But don't just assume this is so; check with your insurance agent to verify your coverage. The Insurance Information Institute, a nonprofit trade association based in New York, recommends buying a policy that covers the replacement cost of computer equipment. Many policies reimburse you only for the actual cash value--the depreciated cost of the items. The III reports that a typical replacement-value policy costs only 10 percent more than an actual-value policy.

If the replacement value of your computer setup exceeds $5000, or if you regularly use your computer for work, a standard homeowner's policy won't cover all your equipment. Specifically, if you operate a business out of your home or you regularly telecommute, your insurance company may deem your computer "business equipment," which isn't covered under a homeowner's or renter's policy. Either way, most insurance policies don't cover software.

Consumers who need extra coverage have two options: Get a floater on their existing homeowner's policy to cover all their hardware and software, or purchase a policy from a company that specializes in computer insurance.

The PC Float

According to Jayna Neagle, manager of new media for the III, policy floaters typically cost in the neighborhood of $1.50 for every $100 worth of equipment. (So hardware and software with a replacement value of $7500 would cost roughly $112.50 a year to insure.) In return for this additional cost, most floaters cover things a typical homeowner's policy won't, such as damage from power surges or viruses.

Computer insurance polices like those offered by Safeware or The Computer Insurance Agency typically provide all the protection of a floater, including small (or no) deductibles, replacement value coverage, and protection against losses due to viruses, power surges, theft, fire, or vandalism.

Although rates for homeowner's policies vary depending on where you live and what level of coverage you desire, computer insurance rates are fairly consistent. Both Safeware and TCIA base their coverage costs exclusively on the value of the insured system (PC and peripherals)--not on the owner's location. For equipment valued at between $5001 and $8000, Safeware charges $89 per year. TCIA's rates are higher: $150 for equipment valued at between $5001 and $6000.

Talk to your insurance agent and check out the plans offered by computer insurance companies to determine which type of policy would work best for you. Besides the individual policies' costs, factors to consider include the comfort of dealing with a trusted insurance broker and the simplicity of buying a policy from a company that specializes in computer coverage.

Stop, Thief!

If you're looking for a little added security, you'll find a handful of hardware devices for thwarting would-be thieves. Most of these products fall into one of two general categories: cabling systems--such as Kablit from Secure-It or the Flexguard Security System--that physically chain and lock your computer to your desk; and motion detection alarms like BluVenom (www.bluvenom.com) that mount on the parallel port or floppy drive.

If all your crime prevention efforts fail to prevent a burglary, software-based tracing systems such as The CyberAngel and CompuTrace Theft Recovery System use your stolen computer's modem to pinpoint the thief. For example, when you report the PC stolen, CompuTrace waits for a phone line to be connected to the computer and then silently dials out, informing a monitoring center of the call's origin and the PC's CompuTrace ID. CompuTrace then informs you by phone or e-mail, so you can summon the police and arrange to reclaim your property.

The III's Neagle says the best kind of theft deterrent "is something visible," noting that the mere glimpse of an alarm or cabling system might be all it takes to keep a burglar from even trying to steal your equipment.

Before You Pack Your Bags

If you're like me, important but postponable matters like insurance somehow always seem to wind up way down at the bottom of your to-do list--somewhere between organizing your files and recording financial information. But make no mistake: Protecting your valuable computer hardware and software shouldn't be an afterthought.

PC Security Check List

• 1. Maintain detailed records. Do this for all your hardware and software, and include model and serial numbers. Update the list periodically and keep a printed copy in your safe-deposit box (or other secure location).

• 2. Back up regularly. You can replace stolen hardware and software. You can't replace valuable business and personal files. Store backups off-site.

• 3.Review your insurance coverage. If the value of your computer equipment investment totals more than $5000 (the typical limit imposed on a homeowner's policy) or if you regularly use your home computer for work, consider purchasing a floater to your homeowner's policy or a separate policy to cover your hardware and software.

• 4. Be inconspicuous. If at all possible, avoid placing computer equipment near windows. Store notebooks, digital cameras, and other smaller items out of sight.

• 5. Make the thief's job difficult. For added security, buy a cabling or alarm system to make it that much harder for a burglar to hit and run successfully.

PC World Contributing Editor Roberta Furger is the author of Does Jane Compute? Preserving Our Daughters' Place in the Cyber Revolution (Warner Books, 1998).