Do You Need
Identity Theft
Insurance?
I
dentity theft insurance helps protect you from the cost of fraud. The Federal Trade
Commission estimates that as many as nine million Americans have their identities stolen each
year. Identity theft victims often have to spend their own money and a considerable amount
of time and energy to clear their credit histories and correct their financial records. Many
insurance companies offer identity theft insurance coverage as an optional endorsement under a
homeowners, renters, condominium unit owners, manufactured home, or farm and ranch policy. If
you become a victim of identity fraud, you’ll need expense reimbursement and personal help for the
recovery process.
Restoration Services
Identity fraud victims spend an average of 60 frustrating hours repairing the damage done by
identity thieves. While many identity theft insurance policies only reimburse you for the money
you spend to do the work yourself, identity restoration services should include professional case
management. This protection should be affordable – available as an addition to your existing policy
that insures your home, apartment, condominium, manufactured home, or farm – and should save
you time and help ease your burden.
What Should Be Included
If you become a victim of identity fraud, your assigned case manager will coach you through the
complicated identity recovery process and work with you to recover control of your identity and
help you restore your credit history. He or she can take on much of the work you’d otherwise have to
handle on your own, including restoration services like:
• Identifying the right people to contact and the information they’ll need.
• Proving that your records or accounts have been fraudulently misused.
• Working with credit bureaus, creditors, and financial institutions to identify errors and correct
your records .
• Enrolling you in an electronic credit monitoring service.
• Reviewing your credit files and requesting fraud alerts with credit bureaus.
• Preparing communications for you to send to credit bureaus, financial institutions,
and government entities.
• Working with you to check for a recurrence of identity theft problems.
• Providing legal referrals to help with court appearances and legal entanglements.
Carl Schindler, LUTCF, CSA
Agent, State Farm Insurance
If you’d rather manage the process yourself, your case manager can provide an identity recovery guide
that will walk you through ways to guard against identity theft and what to do if it occurs. This res-
toration services guide includes sample letters to creditors and credit bureaus and other information
to help you through the process.
Identity Fraud Expense Reimbursement
Identity theft insurance coverage provides for covered expenses caused by identity fraud, including:
Carl Schindler is a 41-year
State Farm Insurance agent in
Morgan Hill. His agency has
been voted #1 in Morgan
Hill for the past 5 consecutive
years. He specializes in
Auto, Homeowner’s, Life &
Disability Insurance. Visit
StateFarm.com/CarlSchindler
or call (408) 779-6969.
• Cost of obtaining credit bureau reports.
• Fees when reapplying for loans, grants, or other credit instruments.
• Phone, postage, and shipping fees.
• Notary and filing fees for costs you incur to correct your identity and credit records.
• Certain legal fees resulting from identity fraud.
• Deductibles or service fees from financial institutions and other costs to recover control over your
personal identity. (This should be part of, not in addition to, the expense reimbursement limit.)
• Lost wages and child and elder care expenses. (This should be part of, not in addition to, the
expense reimbursement limit.)
As a victim of identity fraud, you could find yourself shelling out hundreds, even thousands, of dol-
lars in fees as you work to regain control of your identity and restore your credit. When you add
identity restoration coverage to your existing policy that insures your home, apartment, condomini-
um, manufactured home, or farm, you can protect yourself from the cost of identity fraud.
G M H T O D A Y M A G A Z I N E
MAY / JUNE 2015
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