Identity Theft Protection: Find Protection With a Standard Homeowners Insurance Policy

September 24, 2007 | By: Matt | Comments (0) | Posted in: Homeowners

The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, the risk of identity theft has become so prevalent that most major insurance carriers now offer Identity Theft insurance protection through their standard homeowners and renters insurance policies.

What is Identity Theft Insurance?
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.

The average victim spends over 170 hours trying to repair the damage done to their personal financial information.

Increasingly, insurance carriers are including identity theft insurance in their standard homeowners insurance policies; otherwise offering it as a stand-alone policy or as optional coverage to their homeowners and renters insurance policies.

The Insurance Information Institute reports that these policies generally cost between $25 and $50 a month for $15,000 to $25,000 worth of coverage.

What Identity Theft Protection is Right for You?
As with any insurance product, it is important to shop around for the best Identity Theft insurance coverage as rates and protection levels vary from company to company. When considering the appropriate policy deductible, consider the various costs associated with the crime.

The Cost of a Stolen Identity
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 elevated stress levels. The average victim spends over 170 hours trying to repair the damage done 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.

Protect Your Identity: Simple Steps Could Save You a BIG Headache
With online shopping becoming increasingly popular, you should make sure your computers security settings are up to date. This means updating anti-virus software, make sure your firewall settings are set, and that your operating system is updated. It is always a good idea to use caution when dealing with unknown pop-ups or attachments in e-mails.

It is also a good idea not to store personal information, such as your social security number or credit information on your computer. For non-electronic files, such as bank statements and credit card info, either shred them before throwing them away or tear them into as many little pieces as you can before disposing them. This will prevent would be identity thieves from finding important financial information when going through your garbage.

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. Having Identity Theft insurance can help you get your life back on track more quickly in the event your identity is stolen.

 

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