Identity Theft Insurance

Identity Theft Help Available Through Your Home Insurance Policy

Did you know that Americans are more afraid of having their identity stolen than they are of losing their jobs? According to a study by USAToday, this is indeed the case, and the real world statistics are justifying the concern. The risk of identity theft has become such a reality that many large insurance carriers are now including identity theft insurance protection in homeowners and renters insurance policies. If your agent has yet to offer identity theft coverage you may want to contact your agent and ask about it.

What is Identity Theft?

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, it's a good chance you or someone you know may have experienced some form of identity theft. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn't make-or until you're contacted by a debt collector.

According to the Identity Theft Resource Center, an independent non-profit organization, the average identity theft victim spends over $800 on administrative expenses alone (phone, postage, notary, etc.). Furthermore, the average victim spends over 170 hours of their time repairing the damage to their personal financial information. This laborious and frustrating time can include removing negative marks on credit reports and reapplying for credit accounts and loans. Further compounding the nightmare, many of these stressful tasks can only be conducted during working/business hours.

What is Identity Theft Insurance?

Identity theft insurance provides reimbursement (up to stated dollar amount) to victims for the cost of restoring their identity and repairing credit reports. The insurance does not stop identity theft, or try and prevent it. Its purpose is to help you cover the cost to repair your credit and identity back to what it was.

How it works is identity theft insurance reimburses victims for the cost of restoring their identity and repairing the damage to their personal financial information. Reimbursement can include lost wages, administrative expenses such as phone bills, certified mailing and notary costs, and even attorney fees if necessary.

Get Identity Theft Protection through your Homeowners Insurance Policy

Many insurance companies offer identity theft protection as an option on a homeowners insurance policy. You may also get it as a stand alone policy, but the best deal is most likely through your home insurance policy. The Insurance Information Institute reports that these policies generally cost between $25 and $50 for $15,000 to $25,000 worth of coverage. On average (with our companies) the identity theft insurance is around $25.00.

If you ever suspect that your identity has been stolen, it is critical that you contact your bank and credit card companies immediately. These financial institutions should be able to help you with alerting the credit bureaus and directing you to the appropriate resources. You should protect your Social Security number by calling the Social Security Fraud Hotline at: 1-800-269-0271. A valuable source of information during this time is the FTC Identity Theft Hotline at: 1-877-IDTHEFT.

Content Provided by Insurance Information Institute