What is Identity Theft Insurance and Do You Need It?

Here are some more important details to consider when it comes to identity theft insurance. Insurance policies are important to help protect us in the event of an unforeseen accident or act of nature. For homeowners, insurance can cover the cost of damage caused by a home fire or a burglary. For car owners, it can protect drivers and assist with medical bills if someone is injured during a crash.

With the growing risk of identity theft today, and new scams aimed at stealing the personal and financial information of innocent individuals unveiled each day, identity theft insurance is now also being offered.

Identity theft scams are becoming more sophisticated. When they occur, recovery for the victim can oftentimes be a lengthy and expensive process.

To help reduce some of the risks, there is identity theft insurance that can be purchased from a dedicated provider as a stand alone service or added on to an existing insurance policy if applicable.

Not sure if you need it? Here are some more important details to consider when it comes to identity theft insurance.

What Identity Theft Insurance Covers

Identity theft insurance can vary in what is covered depending on the insurance company or policy details. It is always important to understand the specifics of your policy. However, most identity theft insurance will cover things such as the fees and costs associated with restoring your reputation after you’ve become a victim. This might include legal fees, assistance with getting new government-issued identification and even having a trained knowledgeable case representative who can help guide you throughout your restoration process. These individuals can tell you what steps to take to quickly regain your identity and credibility.

Understanding Policy Details

As with any insurance policy, you want to be sure that you understand the specifics before signing on the dotted line. Details such as deductibles, the amount of coverage and maximum out-of-pocket responsibilities are all important. You should also understand what your monthly payments will be to maintain the policy whether you are purchasing a standalone policy, or adding it on to your homeowners or renters insurance. 

With no signs of online security breaches slowing and the rate of identity theft victims growing, it would be wise to start thinking about identity theft insurance policies. While they are not a foolproof guarantee that you won’t become a victim, combined with vigilant practices to protect your personal information these policies can provide peace of mind knowing you’ll have help if it does happen.


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