Do you need identity theft insurance?

Because it’s a real threat in today’s world, identity theft insurance is a natural-progression product. But is it worth the money?

First, understand what you might go through without this product. In almost all cases, you will not be responsible for repaying unauthorized purchases on your accounts. But in some cases you may be responsible for some or all charges.

At the least, you will lose a few hours dealing with creditors to resolve the issues. Other losses may include notary fees, unpaid leave from work, copy & postage fees for mailing documents, and occasionally, attorney fees.

Identity theft insurance covers the expenses entailed in reclaiming your identity. The best products include at least partial coverage for attorney fees. The biggest benefit is not the protection from exorbitant purchases (since you are typically protected from that without ID insurance), but the promise that a professional will walk you through the steps to regain your identity, secure your accounts, and re-establish your credit.

You may already have ID theft insurance through your homeowner’s policy. If not, a rider on your home policy could be one of your least expensive options.

Also, it is important to note that identity theft insurance differs from identity theft prevention services. Identity theft insurance helps victims recover and reclaim stolen identities, after the fact. ID protection services, on the other hand, focus on monitoring credit profiles to detect suspicious activity and work to prevent ID theft before it ever occurs.