2. How can I be sure that my Homeowners Insurance Identity Shield policy covers all relevant threats to my identity?
Identity Shield Coverage in Homeowners Insurance
Identity theft is one of the most pervasive types of financial crime in our digitally-connected world. Homeowners insurance may provide coverage to help protect you financially if you become a victim of identity theft.
What is identity theft?
Identity theft occurs when someone takes another person’s personal information and uses it to commit fraud or identity-related crimes. This stolen data may include credit card numbers, Social Security numbers, and all kinds of financial information such as bank, loan and investment accounts.
What is identity shield coverage?
Identity shield coverage is a type of insurance offered by some homeowners insurance companies that helps protect you financially if you become a victim of identity theft. This coverage helps pay for:
- Legal costs: Reimbursement for legal expenses to help clear up any credit or financial issues resulting from identity theft.
- Lost wages : For wages lost due to time spent dealing with the effects of identity theft.
- Identity restoration services: Assistance from a third-party identity restoration specialist to help restore your identity.
Identity shield coverage may also provide financial protections in the form of a reimbursement for expenses associated with recovering from identity theft, such as lost wages, legal fees, and costs associated with replacing documents or credit cards.
What is not covered with identity shield coverage?
Identity shield coverage does not typically provide reimbursement for remedies such as credit monitoring or identity theft insurance. It also typically does not provide reimbursement for any money that was stolen directly from a bank account.
Should you buy identity shield coverage?
Identity theft is becoming increasingly common and can cause serious financial hardship. It may be a good idea to consider purchasing identity shield coverage even if it is not a standard part of your homeowners insurance policy. Doing so can give you the peace of mind that you’re protected if you become a victim of identity theft.