05 Mar Does Homeowners Insurance Cover Identity Theft?
Can Your Home Insurance Help After Your Identity Has Been Stolen?
It’s a nightmare scenario: Realizing identity thieves have accessed your personal information. Identity theft can happen to any of us and come with serious consequences that could jeopardize your financial future. In some cases, you may find yourself on the hook for a number of expenses, including legal fees, the cost of replacing documents, and more. You may be left wondering if home insurance can help.
Home insurance and identity theft
Does your home insurance help when you’ve been a victim of identity theft? This is a question you should ask yourself before the scenario happens. Many home insurance providers offer the opportunity to purchase additional coverage (a rider or endorsement) to provide relief should identity theft occur.
Homeowners insurance identity theft protection often provides the following:
- Travel reimbursement
- Coverage of legal fees
- Lost wages
- Help with the replacement of government-issued IDs
- Services to repair identity and credit
- Fees from financial institutions
Limits of coverage
Identity theft protection under your home insurance does not cover your monetary losses. If someone else filed your tax return in your name and got your $6,000 refund check, you won’t be able to get that $6,000 back from your insurance company.
It’s also worth noting that adding identity theft coverage in no way protects you from having your identity stolen. It is merely a safeguard that may help ease the financial burden after an identity theft incident. To prevent falling victim to this, consider keeping a close eye on your credit report and be mindful of sharing your personal information.