6 Surprising Things Homeowners Insurance Covers - ConsumerReports.org

As with counterfeit cash, a homeowners or renters policy typically reimburses up to $500 in losses per incident if someone uses any of these cards to steal money from you or buy items in your name. The same goes for forged checks you unwittingly cash, and for losses you suffer due to someone forging your signature on a check.

“This is an example in which your policy deductible doesn’t apply,” Worters says. In other words, you don’t have to meet your deductible before the insurance kicks in; you’ll simply get paid your losses up to $500. 

Just remember: Even though your homeowners policy will cover you, report the loss to the card issuer first, and make a homeowners insurance claim your backup option. Credit and debit card companies are required to reimburse or reverse the charges on all but $50 of unauthorized charges or withdrawals as long as you report the incident within 48 hour of discovering it, notes Christina Tetreault, a senior policy counsel at Consumer Reports. The same goes for prepaid cards. 

If you miss the 48-hour window, the card issuer is responsible only for returning sums in excess of $500. In these instances, make a claim with your homeowners insurance company to get fully reimbursed.