Does Homeowners Insurance Protect Against Identity Theft?

What your home insurance covers if your identity is stolen.

With rates of identity theft increasing every year, many people are concerned about their risk.  As a result, many homeowners wonder if they have protection from identity theft via their homeowners insurance in North, Texas.  Curious to see what your policy will cover?  Here’s what you need to know about home insurance and identity theft.

  • Identity Theft Coverage is Available, But Not Standard

Identity theft protection is not included in standard home insurance policies.  However, in response to this emerging risk, many insurance providers offer policy endorsements specifically designed to protect against the losses associated with identity theft.  Because identity theft can have a negative impact on your credit and cause other financial problems, home insurance identity theft endorsements usually focus on recovery costs and restoration services.  This means that your endorsement will help you cover the cost of replacing important documents, monitoring your credit, and so on.

Please keep in mind that identity theft endorsements will not offer coverage for the money you lose as a result of the identity thief withdrawing funds from your account or making purchases in your name.  You will have to handle these financial losses on your own by working with your individual financial institutions.

  • Reporting Identity Theft

If you become the victim of identity theft, then you need to file a report with the police and your financial institution as soon as possible.  The faster you report the theft, the quicker you can protect your various assets and credit.  After you have reported the theft to the authorities and your bank, you can file an identity theft claim with your insurer.  If you have the endorsement, then your insurer will connect you with a professional who can help you replace the necessary documents, correct credit reporting errors, and address other issues.

This is what you need to know about your home insurance and identity theft.  Do you have additional questions about your homeowners insurance in North, Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.