Identity Theft: low-cost solutions with Homeowners/Renters policy

According to the Federal Trade Commission, over 10 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced the crime of identity theft. Homeowners and renters now have a low-cost option available to protect against this growing problem. Several insurance providers are now offering "Identity Theft" coverage as an endorsement to their primary homeowners' policies. These endorsements range from $25 to $50 and provide a wide array of services to help the insured recover from their loss. Typical endorsements provide approximately $25,000 for “expenses” and grant the insured access to “resolution services.”

Expenses Include:

Cost of Notarizing: Financial institutions, credit grantors, and credit agencies typically require notarized documentation to resolve any identity fraud claims.

Cost of Certified Mail & Phone Calls: Steps to resolved identity theft may result in costly correspondence with law enforcement agencies, credit grantors, and credit agencies.

Lost Wages: As a result of taking time off work, the insured may be eligible for lost wages while meeting with law enforcement and financial institutions. This coverage usually carries a maximum limit of $1,000 per week. Lost wages are also provided for wrongful incarceration arising solely from someone having committed a crime in the insured’s name.

Loan Application Fees: Re-applying for a loan or loans when the original application is rejected because the lender received incorrect credit information.

Attorney Fees: Defense of lawsuits, the removal of criminal and civil judgments, and challenging the accuracy of a consumer credit report are just a few examples of covered attorney expenses.

Cost for Daycare and Eldercare: Identity Theft can interrupt our daily routines and may increase the need for family care. Most, but not all, “identity theft” endorsements include this coverage.

Resolution Services:

Ordering your Credit Report: A consumer fraud specialist will facilitate the ordering of an insured’s credit report and provide records from all three credit reporting agencies.

By Federal law, you are entitled to one free credit report per year from each of the credit bureaus – Equifax, Experian, & TransUnion.

Alerting Credit Reporting Bureaus: In the event of a reported loss, a consumer fraud specialist will notify all three credit reporting bureaus – Equifax, Experian, & TransUnion.

Credit Monitoring: Insurance companies have teamed up with many reputable credit monitoring services to provide ongoing reporting of an insured’s credit activity. Coverage may be limited to six months per claim.

According to the Federal Trade Commission, two-thirds of victims who discovered the misuse of their personal information within five months incurred limited out-of-packet expenses.

Preparing Documentation & Letters: A consumer fraud specialist will help draft and prepare correspondence with all financial institutions, law enforcement, and credit grantors.

There are many credit monitoring programs and companies in the marketplace, but if you are looking for a cost effective solution, look to your homeowner’s, condo, or renter’s insurance policy to provide the protection and peace of mind. All major insurance companies have launched “Identity Theft” coverage. Consult with your local insurance agent or broker and ask about this popular endorsement.