Homeowners Insurance And Identity Theft Protection
Homeowners insurance can include identity theft protection to cover legal fees, lost wages, credit repair, and document replacement after fraud.
Does homeowners insurance cover identity theft?
It’s a nightmare scenario: realizing identity thieves have accessed your personal information. Identity theft can come with serious consequences and place your financial future in jeopardy.
Most credit card companies and banks have protections in place to ensure you avoid the brunt of the financial impact. These protections typically only cover items purchased without authorization. You may find yourself on the hook for a number of expenses, including legal fees, the cost of replacing documents, and more.Â
Fortunately, your renters or homeowners insurance policy can step in to provide some relief. This coverage is typically affordable, running between $25 and $60 per year, depending on the insurer and the limit of coverage. Find out more about how identity theft insurance coverage can help you get back on your feet after an attack.
What does homeowners identity theft protection cover?
Many homeowners insurance providers offer the opportunity to purchase additional coverage (often called an endorsement or a rider) to provide relief should identity theft occur.Â
Many companies will offer you access to a fraud specialist who can advise you on what steps you need to take to restore your credit or otherwise repair damages done in your name. These specialists can, in some cases, even make calls on your behalf to creditors, the IRS, or other agencies and organizations.
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Travel reimbursement
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Coverage of legal fees
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Lost wages
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Help with the replacement of government-issued IDs
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Services to repair identity and credit
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Fees from financial institutions
Renters insurance may also assist in the event of identity theft. Many renters insurance companies offer identity theft coverage as an endorsement. These typically carry the same protections and limits as their homeowners counterparts. Companies such as Allstate, American Family Insurance, and The Hartford offer such options for renters.Â
Limitations of identity theft coverage
It should be noted: adding this coverage in no way protects you from having your identity stolen. Identity theft protection is merely a safeguard that may alleviate some of the financial burden after an identity theft incident. If you're looking for a way to keep your personal information from being stolen, consider keeping a close eye on your credit report and taking advantage of free protections offered by your credit card company. Bear in mind that no option is foolproof, and that vigilance is among the top tactics you can use to protect yourself.
Some top home insurers partner with identity theft defense companies like CyberScout or Generali Global Assistance to provide identity theft protection. These companies actively monitor your credit reports and watch for signs of foul play. While they are not able to prevent identity theft entirely, they may offer a good first line of defense.Â
| Insurance company | |
| Allstate | $25,000 |
| American Family Insurance | $25,000 |
| The Hartford | $25,000 |
| Liberty Mutual | $15,000 per occurrence and $30,000 per policy term |
| Nationwide | $25,000 |
| State Farm | $25,000 |
| Travelers | $25,000 |
| USAA | $5,000* |
*USAA provides this coverage standard on all homeowners policies.
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Other types of identity protection insurance coverage
Some insurance companies provide coverage that goes even further to protect clients from identity theft. State Farm, for instance, offers Cyber Attack Coverage, Cyber Extortion Coverage, and Fraud Coverage.Â
What to consider with identity theft insurance coverage
- It won’t prevent theft: Just like auto insurance can’t stop accidents, identity theft coverage can’t stop the crime itself.
- It helps with recovery: Coverage can ease the financial strain of restoring your identity and accounts.
- It’s affordable: Policies are usually low-cost compared to the protection they provide.
- It offers peace of mind: Knowing you have support if your identity is stolen can reduce stress.
👉 If you’re interested in adding this coverage, reach out to one of our agents to learn more.
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Insurance and identity theft protection FAQs:
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