Identity Theft and Your Homeowners Insurance

Can your home insurance cover instances of identity theft?identity thief with social security card

Identity theft is becoming a major issue throughout the U.S.  This is why many are looking for ways to secure insurance for instances of identity theft.  For example, many homeowners ask if they have coverage through their homeowners insurance.  Here’s what you need to know about your home policy and identity theft coverage.

  • Identity Theft Coverage Options

Unfortunately, identity theft protection is not included in standard home insurance policies.  However, in response to this emerging risk, many insurance providers offer policy endorsements specifically designed to protect against the losses associated with identity theft.  On average, these endorsements cost between $25 and $60 a year.  Because identity theft can have a negative impact on your credit and cause other financial problems, home insurance identity theft endorsements usually focus on recovery costs and restoration services.  This means that your endorsement will help you cover the cost of replacing important documents, monitoring your credit, and so on.

Please keep in mind that identity theft endorsements will not offer coverage for the money you lose as a result of the identity thief withdrawing funds from your account or making purchases in your name.  You will have to handle these financial losses on your own by working with your individual financial institutions.

  • Reporting Identity Theft

If you become the victim of identity theft, then you need to file a report with the police and your financial institution as soon as possible.  The faster you report the theft, the quicker you can protect your various assets and credit.  After you have reported the theft to the authorities and your bank, then you can file an identity theft claim with your insurer.  If you have the endorsement, then your insurer will connect you with a professional who can help you replace the necessary documents, correct credit reporting errors, and address other issues.

This is what you need to know about insuring against identity theft.  Do you have additional questions about your homeowners insurance?  If so, then contact the experts at VGW Walker Insurance in Texas.  Our dedicated team is eager to get you the coverage that you need today.