Identity Theft Insurance

What is it?
Some insurance companies now include coverage for identity theft as part of their homeowner’s insurance policy. Others sell it as a stand-alone policy or an endorsement of a homeowners’ or renters’ insurance policy.

What does it cover?
Identity theft insurance reimburses crime victims for restoring their identity and repairing credit reports. It generally covers expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). Some companies also offer restoration or resolution services that will guide you through recovering your identity.

What does it cost?
Some insurance companies will include identity theft coverage for no additional cost. However, most will charge anywhere from $25 to $100 annually for the additional insurance coverage.

Tips for Avoid Identity Theft

• Keep your personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card, or your passport unless necessary.

• Always take credit card or ATM receipts. Please don’t throw them into public trash containers; leave them on the counter or put them in your shopping bag, where they can easily fall out or get stolen.

• Do not give out personal information. Whether on the phone, through the mail, or over the Internet, don’t give out any personal information unless you have initiated the contact or are sure you know who you are dealing with and that they have a secure line.

• Proceed with caution when shopping online. Use only authenticated websites to conduct business online. Before submitting personal or financial information through a website, confirm the site is secure.

• Ensure you have firewall, anti-spyware, and anti-virus programs installed on your computer. These programs should always be up to date.

• Monitor your accounts. Don’t rely on your credit card company or bank to alert you of suspicious activity.

• Order a copy of your credit report from the three major credit bureaus. Make sure it’s accurate and includes only those activities you’ve authorized.

• Shred any documents containing personal information, such as credit card numbers, bank statements, charge receipts, or credit card applications, before disposing of them.