Identity Theft Protection And Homeowners Insurance

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.

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, 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.

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. Some companies now include it as part of their homeowners insurance policy. Others sell it as either a stand alone policy or as an endorsement to a homeowners or renters insurance policy.

Identity theft insurance reimburses victims for the cost of restoring their identity and repairing the damage to their personal financial information. Identity Theft insurance reimbursement can include lost wages, administrative expenses such as phone bills, certified mailing and notary costs, and even attorney fees if necessary The Insurance Information Institute reports that these policies generally cost between $25 and $50 for $15,000 to $25,000 worth of coverage.

Get Identity Theft Protection through your Homeowners Insurance Policy

As with any insurance policy, it is important to shop around for the best identity theft insurance policy as rates and protection levels vary from company to company. When considering the appropriate policy deductible, consider the various costs associated with the crime. 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.).

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.

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