Whether they're looking through your documents in dumpsters or locating your bank account numbers and personal passwords online, identity thieves can take advantage of your finances. Look into identity theft coverage through homeowners insurance to protect your livelihood.
An Endorsement to Your Homeowners Policy
Many consumers find identity theft coverage through an existing insurance policy. A homeowners, condo or renters insurance policy may offer an identity theft endorsement for a higher premium. You probably already have coverage for any theft related to your credit card accounts from your credit card company. Your bank can help provide you with additional coverage, though it may charge a small fee for these services. An endorsement to your home insurance policy can cover: • Income that you lose in the period of time you take to clear your name • Legal fees related to correcting the issue, as your insurer may hire a legal firm to handle issues related to the theft • Loan application fees • Phone bills charged for the hours you spend talking to banks and credit card companies, and other incidental costs, such as postage for certified and notary mailings.
Restoring Your Name and Legal Costs
Your homeowners insurer may appoint a team to help you correct damage done to your credit rating, which is easily ruined by a thief using your credit cards and bank accounts to charge for services and items you never wanted. An identity theft policy can offer legal assistance, including: • Discounted legal services • Filling out police reports and any necessary paperwork • Legal referrals • Notification of credit card institutions, lenders, governmental organizations such as the Federal Trade Commission (FTC), law enforcement and collection agencies of the fraud that's occurred to your account
Monitoring Your Credit
Some insurers monitor your credit files for you, put preventive measures in place and walk you through credit restoration. Alert credit bureaus of an instance of major fraud so your insurer can place a fraud alert with them--a type of notification that demands verification of your identity before any credit lines are taken out in your name. Your insurer can help you receive copies of your credit report without an additional fee. The team appointed by the insurer may work directly with the three credit bureaus (TransUnion®, Experian® and Equifax®) to examine your credit history to review the impact of fraud and prepare to assist you in correcting your history. Review how smart consumers are accessing identity theft protection at no cost by doing some of the work provided by insurers on their own.