Does Homeowners Insurance Cover Identity Theft?

Identity theft is a growing problem in the United States. According to the Identity Theft Resource Center, there were 781 data breaches in 2017 that affected over 176 million records. If you are one of the millions of Americans who have had their personal information stolen, you may be wondering if your homeowners insurance policy will cover the costs associated with repairing the damage done by identity thieves. 

So does homeowners insurance cover identity theft? The answer is usually no. However, we will discuss how you can add an identity theft rider or endorsement onto your existing homeowners insurance policy.

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What is Identify Theft?

Identity theft occurs when someone uses your personal information, such as your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. 

Identity thieves can use your information to open new accounts in your name, make unauthorized charges on your existing accounts, or even get a job or file for government benefits using your stolen Social Security number.

The Importance of Understanding Your Coverage

If you are a victim of identity theft, you may have to spend a lot of money and time to repair the damage that has been done. You may have to hire an attorney or a credit repair company to help you clear your name and restore your credit rating. 

You may also have to close accounts that have been tampered with and open new ones. The costs associated with identity theft can quickly add up, which is why it’s important to know if your homeowners insurance policy will cover these expenses.

Get an Identify Theft Rider Or Endorsement Added to Your Policy

Most standard homeowners insurance policies will not cover the costs of identity theft. However, you may be able to purchase an identity theft rider or endorsement that will provide some coverage. An identity theft rider or endorsement will typically cover the costs of restoring your credit and your good name, as well as any legal fees you incur as a result of identity theft.

Steps to Protect Yourself

If you are concerned about becoming a victim of identity theft, there are some steps you can take to protect yourself.

Be sure to shred any documents that contain your personal information before you throw them away. You should also avoid carrying your Social Security card or other sensitive information in your wallet or purse. 

Keep an eye on your credit report and be sure to report any suspicious activity right away. By taking these precautions, you can help reduce your risk of becoming a victim of identity theft.

Consider Identify Theft Insurance

If you are worried about becoming a victim of identity theft, you may want to consider purchasing an identity theft insurance policy. An identity theft insurance policy will typically cover the costs of restoring your credit and your good name, as well as any legal fees you incur as a result of identity theft.

When shopping for an identity theft insurance policy, be sure to compare the coverage and costs of several different policies before you make a decision. And remember, an identity theft insurance policy is not a replacement for a standard homeowners insurance policy

You will still need to purchase a separate homeowners insurance policy to protect your home and belongings from fire, theft, and other perils. But if you are worried about identity theft, an identity theft insurance policy may give you the peace of mind you need.

Conclusion

While homeowners insurance does not typically cover identity theft, you can purchase an identity theft rider or endorsement to provide some coverage. You can also take steps to protect yourself from becoming a victim of identity theft, such as shredding documents that contain your personal information and keeping an eye on your credit report.

If you are worried about becoming a victim of identity theft, you may want to consider purchasing an identity theft insurance policy. But remember, an identity theft insurance policy is not a replacement for a standard homeowners insurance policy. You will still need to purchase a separate homeowners insurance policy to protect your home and belongings from fire, theft, and other perils.

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