Does Homeowners Insurance Cover Identity Theft?
Safeguarding your identity with homeowners insurance.
Identity theft is a serious crime that can quickly ruin lives – and it is an issue that seems to be increasing at an alarming rate. Victims should have some way of recovering their financial losses, but standard homeowners insurance policies do not typically cover identity theft. However, many insurance companies offer endorsements that protect policyholders who become victims of identity theft. Is this coverage worth securing?
What is identity theft?
Identity theft is the taking and using your name and other personal information, including your address, date of birth, credit card, and bank account details. If this information is stolen, a criminal can use your personal details to withdraw money from your account, take out a bank loan or use your credit card.
You may think that your information is secure because you shred all your bank statements and credit card receipts. However, it is relatively easy for a fraudster in today’s society to obtain your sensitive information. Almost 50 percent of personal information used by identity thieves is taken from stolen laptops, lost memory sticks or other portable devices used to store data. A stolen passport, a driving license or another personal document can be used for fraudulent purposes, too.
When your identity has been used fraudulently, it can take a lot of time and expense to prove that you are not personally responsible for any loans, debts, large financial transactions or serious crimes carried out by someone else using your identity. There may be legal costs to pay, which can result in you needing to take out a loan to cover your legal defense.
Home insurance and identity theft
Generally, standard home insurance coverage does not offer any identity theft coverage. However, you do have an option to add this as an endorsement (also known as a rider) to your policy. This is relatively affordable, costing between $25 and $60 a year. Typically, these endorsements focus on recovery costs and restoration services. Having an identity theft endorsement on your home insurance policy ensures that you and your family have coverage in place that protects you against the expenses that result from identity fraud.
Keep in mind that having a home insurance endorsement does not mean that you are immune to identity theft. You should still take precautions to keep your information safe and secure. If the worst does happen, you can fall back on coverage.
Are you looking to secure identity theft coverage and protect your finances? Find your quality homeowners insurance by contacting the team at Mayer Insurance today. We serve Apple Valley and neighboring cities in Minnesota with quality coverage.