You’ve probably heard about identity theft in the news, but what about identity theft insurance? Your bank usually offers some sort of fraud protection, but it doesn’t cover everything you might lose to identity theft. Continue reading to learn more about what identity theft insurance is and what it does.
What Does Identity Theft Insurance Do?
Identity theft insurance is a special type of insurance that covers your losses due to identity theft. If someone opens credit cards in your name or hacks your bank account, identity theft insurance will help you pay for the financial losses that you suffer.
Isn’t Fraud Protection Enough?
Most banks and credit cards offer fraud protection that gives you zero liability for fraudulent transactions. If someone spends your money, the bank will generally give it back following an investigation. However, this is as far as fraud protection usually goes.
What Does Identity Theft Insurance Cover?
Identity theft covers all of the other potential costs that might be associated with identity theft. These might include the following:
- Lost wages from time you had to take off of work to deal with the identity theft.
- Late fees from not being able to pay your bills while your bank accounts were frozen.
- Copies of your credit report.
- Credit monitoring services.
- Bank fees for replacement cards and checks.
- Credit repair services.
- Legal fees.
- Plus gives you an experienced Ally in someone that can advise & direct you.
It’s important to understand those specific coverages may vary by your policy. Coverage is also subject to policy limits that can vary based on the coverage options you chose. Always carefully review the individual policy to see exactly what protection you will have.
Can’t I Sue for Those Other Costs?
You could probably technically find a reason to sue someone for identity theft. The problem is winning and collecting your money. Identity thieves can be difficult to track down and are often in foreign countries where the local court system can’t reach them. If you want to sue a bank or other business for a data breach, you’d have to prove both that that’s where your information was stolen and that they didn’t have reasonable security measures in place. Even if you’re able to do so, the judge may not hold them wholly responsible for all of your losses. Finally, you’ll have to pay legal fees, and it could take months for your lawsuit to settle or go to trial.
Do I Really Need Identity Theft Insurance?
The chances of identity theft may seem remote, but it’s something that happens to millions of people each year. Like other types of insurance, you don’t realize how important it is until you need it. Think about what would happen if identity theft on your bank account kept you from making rent or your mortgage payment in a month plus all of the time it would take to clean up that mess. That’s what identity theft insurance is guarding against.
To learn more about identity theft insurance, talk to Leonard Insurance. We’ll help you find the right policy to meet your needs.