“Bank Account Numbers Stolen”, “Hospital Records Breached”, “Computer Passwords Hacked” These and more are in the headlines every day – are you protected?

Every day we hear the horror stories, people losing their private information to criminals. There are other articles explaining steps to take to avoid this kind of theft, but even if you take every precaution advised there is still a possibility you may become a victim of identity theft. That is where Identity Theft Insurance comes into play.

Identity Theft Insurance will cover expenses incurred to restore your identity up to the limits stated in the policy. Coverages usually range from $10,000 to $1 million. Though this may sound like enough, be sure to read the conditions and exclusions carefully and review with your agent to be sure you understand what is and isn’t covered.

You might also want consider the following:

Are there other services available or included? For instance will the policy monitor your credit rating on all three bureaus and notify you of suspicious activity. Do you get a data protection plan/package for your computers, is it free? Will the carrier help you resolve the issue or just pay you when you resolve it?

Is there a deductible/fee? Just like any insurance there may be a deductible, if the cost to resolve the issue is less than the deductible you will end up paying out of pocket. Perhaps there is an option when you choose your coverage to choose your deductible level as well.

What about legal fees or lost wages? If they are covered are there limits? Some policies cover legal fees and lost wages, but if there is a maximum, you may end up with a bill. You may also be required to receive pre-approval. Though policies with these coverages may be more expensive they could save you dearly in the long-run.

As with any insurance / financial decision speak with your agent to ensure you get the coverage you need.