Identity Theft and Homeowners Insurance Protection
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July 17, 2006 | By: 
Comments (5) |
Identity theft insurance reimburses victims for the cost of restoring their identity and repairing the damage to their personal financial information (e.g. credit reports). Insurance reimbursement can include lost wages, administrative expenses such as phone bills, certified mailing and notary costs, and even attorney fees if necessary. Increasingly, insurance carriers are including identity theft insurance in their standard homeowners insurance policies; otherwise offering it as a stand alone policy or as an additional option to a homeowners or renters insurance policy. The Insurance Information Institute reports that these policies generally cost between $25 and $50 for $15,000 to $25,000 worth of coverage.
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As with any insurance product, it is important to shop around for the best identity theft insurance product 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.). This cost does not include the potential threat of lost wages, compromised work performance, and exasperated medical conditions. 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.
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Securing Identity Insurance is by no means a substitute for safeguarding your personal information. There are fundamental precautions that consumers should take to protect themselves.
- When it comes to your identity, simply do not give out your personal information, including bank account and credit card numbers.
- Check your credit report at least once a year. The three major credit bureaus include TransUnion, Equifax, and Experian.
- When it comes to your ATM information, properly protect your account number, the security PIN number, and manage and dispose of all receipts appropriately.
- If you receive financial solicitations in the mail, tear them up into little pieces before you throw them in the trash. The same holds true for all financial documents!
- Identity thieves target mailboxes to obtain credit card offers and financial statements, therefore, make sure your mailbox is secure. It’s important that you promptly remove mail when it has been delivered.
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.
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Comments (5)
Dan
September 5, 2006 18:26
If you need to file an insurance claim, you owe it to yourself to at least know what a Public Adjuster is: http://www.publicadjuster.com
They commonly secure settlement amounts from your insurance company three, five and even ten times higher than the insurance company first offered you.
WaltDe
August 31, 2006 07:18
Very good reading. Peace until next time.
WaltDe
Rob
August 3, 2006 17:06
I was a victim. Fortunately, I spotted the bogus charges online before my statement was issued. I called my credit card company and they launched a fraud investigation. Charges were made at an electronic's online store and merchandise was picked up at a local outlet in my city. The thief used a fake credit card and driver's license.
Some tips I learned after this experience. Get a credit report quarterly and review it for loans thieves might try to get. Also, you can place an alert with the reporting company and it automatically goes to the other reporting agencies.
It is a good idea to change all your passwords online as well. Do it often and use passwords that are not easy to guess.
Use a good firewall and virus scan program on your PC. Be very careful about what information you put on your computer or give out on the internet.
Don't click on Web links in emails you get from unverified sources. Phishing scams are abundant.
Lisa
July 24, 2006 10:14
Hello, Recently my husband was deployed to Iraq. I received a copy of his orders and the last 4 pages of the orders were the names and ss #'s of everyone going to Iraq, including my husbands.
Identity theft is a big problem. If you do a google search on the internet it will turn up over 80,000 results. Thats amazing isnt it. Well the truth is unfortuneatly it isnt going away anytime soon. And did you know that if someone gets a credit card in your name and you dont find out until after 60 days or shortly before 60 days you are responsible for any charges incurred unless you can send the correctly formatted letter to the company and dispute the card. 60 days thats all. Another thing you may not know is that Identity Theft is not only with credit cards, People could have surgical procedures done in your name, purchase cars, boats, homes in your name, etc. Thats pretty scarry isnt it.
I havent had any problems with Identity Theft, but I do have a home business that I work with that helps monitor and watches for problems with our credit report and alerts us immediately if someone were to open an account etc. I also have access to wonderful Lawyers if I have any questions. I had to call the other day and I called around 3:50pm to my surprise they immediatedly called me back to answer my question. That was wonderful. I dont get charged and they immediately called me back and My question was answered. The Lawyers are guaranteed to return your call the same day. Maybe some of you have heard of it, Prepaid Legal/Identity Theft. It's a wonderful company and if you would like to know more go to my website at www.prepaidlegal.com/hub/lisarutherford.
I hope this helps some of you understand what is going on in our world today but we can all fight back and protect ourselves.
Dana Lewis
July 24, 2006 07:49
Being reimbursed for time off work and damages done financially is good, but financial identity theft is only the tip of the iceberg. Identity Theft occurs when a person knowingly uses another person’s information in a fraudulent manner for the purpose of obtaining goods, services, or credit, or to mask their own identity for the purpose of obtaining work or medical benefits. The identity thief looks for information he can use to create official documents or gain access to financial accounts. With this information, they can open new credit card accounts for their own use, apply for loans in the victim’s name, pilfer their bank accounts, and illegally obtain professional licenses, driver’s licenses, and birth certificates, which could result in personal, criminal, or financial activity in your name. Once those documents are created, the list of possibilities is endless.
The key is to provide yourself with a complete wall of protection. Pre-Paid Legal Services, along with the Identity Theft Shield are the only products that provide protection before, during, and after the theft occurs. You will need daily monitoring to provide you with early detection if inquiries are made or new accounts are opened in your name. You will also need restoration services in the event your identity is ever compromised to clean up any activity and make sure it hasn't fingered out to any of the other data bases that can result in criminal activity and charges against you. You will also need access to cousel in the event you are arrested due to crimes committed in your name, and to make sure your information is cleaned up after the event occurs.
This is all provided for less than $1.00 a day under the Pre-Paid Legal membership with the Identity Theft Shield. For more information go to www.prepaidlegal.com/hub/ddlewis