What is identity theft?
Identity theft happens when an unauthorized person illegally gains access to your personal information. It is the process of collecting it with the intent of extortion, fraud, and theft. Common things targeted by thieves include your computer passwords, social insurance number, credit cards, bank account information, drivers licence, passport, and other financial assets.
Signs your identity has been compromised
The unfortunate thing about being a victim of identity theft is you often don’t find out until it is too late. You could receive your credit card statement with hundreds or thousands of dollars in unauthorized charges. You could find important mail stops coming to your residence. You could receive approval for financial products you never applied for. There could be a sudden dip in your credit score. Or you could see email transfers going out of your bank account that you never sent. These are only some of the many ways you could be targeted.
It is a stressful situation. It takes a lot of time, resources, and effort to recover. Plus, there is the potential for financial loss. Identity theft insurance can help protect you in this situation.
What is identity theft insurance?
Rebuilding your credit and financial profile is challenging after fraudulent activity. This insurance supports you if your identity is compromised. It will help to cover some of the costs related to recovering personal identification documents, repairing credit scores, and getting compensated for lost financial resources. You can receive legal assistance and get support from specialists to aid in your recovery process.
Check with your insurer to see if you already have protection as part of your home insurance. Depending on your plan, your protection could be basic. In this case, you can add a fraud and identity theft insurance policy rider to your existing homeowner's plan.
How does identity theft insurance work?
Most homeowner policies include basic protection as part of comprehensive plans. You will receive compensation to cover expenses related to recovering your identity. You will be assigned a specialist to help you work through the process. You will also receive credit monitoring services for a defined period after you open a claim. You can receive some compensation for financial loss related to your stolen identity.
You can add this safeguard as an endorsement to your existing policy. Most plans give you the choice to add anywhere from $10,000 to $50,000 worth of coverage. This will also extend to other family members living at your residence.