Identity Theft Coverage: What Is It? Do You Need It?

Information provided by: Insurance Information Institute

It’s happening everywhere. Data from retail stores, hotels, banks and other businesses are being stolen and misused – and data theft scams are likely to increase as the holiday season approaches, according to the Insurance Information Institute.

Identity fraud is on the rise for the second year in a row, affecting more than 13 million consumers in 2013, according to the Federal Trade Commission.  Consumers suffered total fraud losses of more than $18 billion, averaging $2,294 per incident, and more than 11 hours trying to resolve the average case.

Most homeowners and renters policies provide coverage for theft of money or credit cards; however, the amount of coverage is limited – usually $200 in cash and $50 on each credit card. Once you have reported the loss or theft of your credit card to the issuing company, you are responsible for only $50 of unauthorized use.

Some insurers include coverage for identity theft as part of their homeowners insurance policies.  Other companies sell more comprehensive coverage as a stand-alone policy or as an endorsement to a homeowners or renters insurance policy.

Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports.  It generally covers expenses such as phone bills, lost wages, notary and certified mailing costs, fees when reapplying for loans, grants or other credit instruments and sometimes attorney fees (with the prior consent of the insurer).

Some companies also offer restoration or resolution services to guide you through the process of recovering your identity, which can include working with credit card companies, credit bureaus, creditors and businesses on your behalf to correct any covered identity fraud issues.  For the complete article and more information, click here.

For a quote or to find out what coverage your carrier offers, contact me today.