CHARLOTTE — If someone steals your identity, it can be hard to clean up the mess, so Action 9 attorney Jason Stoogenke wants you to know the pros and cons of identity theft insurance.
It covers the cost of getting your identity back, which means paperwork fees, notary fees, mailing documents, and lost wages if you have to take time off work. It may even cover hiring an attorney, credit monitoring, or help recovering data if the criminal got into your device.
But ID theft insurance typically does not prevent you from falling victim to ID theft or -- and this is very important -- replace what you lost. So, if the thief stole your identity -- and then your money -- insurance probably won’t put that cash back in your wallet.
Eva Velasquez runs the nonprofit, Identity Theft Resource Center, and weighed in on this kind of insurance.
“I always compare it to dog grooming. I can hire a groomer, or I can bathe my dog myself. Both have value for different reasons. It’s a personal decision,” she said.
If you’re interested in ID theft insurance, see if your homeowner’s or renter’s policy already includes it, because it may.
If not -- and you’re considering buying a separate ID theft policy -- ask:
- What’s covered? And maybe more importantly: What’s not?
- How much is the deductible?
- If the policy covers lost wages or legal help, what are the exceptions?
ID theft insurance usually costs between $25 and $60 per year.
The FTC counted more than 1.1 million cases of identity theft last year, more than 2 million of related fraud, and a total loss of almost $13 billion.
If someone does steal your identity, start undoing the damage here.
You can also contact the Identity Theft Resource Center. It helps on the front end with education and advice, but it also helps on the back end with identity theft recovery.
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