Insurance Can Help You Recover From Identity Theft

According to a recent Federal Trade Commission report, the state of Georgia ranks seventh in the percentage of identity theft complaints. In 2009 alone, there were over 9,500 complaints in our state. The FTC estimates that as many as 9 million Americans have their identities stolen each year.

The most common types of identity theft in Georgia involve government documents, credit cards, bank accounts, phone and utilities accounts, job related information and loan fraud. They will use your name, social security number, driver’s license number, bank account or credit card account number for profit. These criminals can take your wallet or purse, or deceive you electronically by using email to appear as a legitimate company. They might even try to obtain your credit report by posing as a landlord, employer or someone else who may have a real need for the information.

It is a felony under the identity fraud statutes to use someone else's identity. The Georgia Bureau of Investigation maintains a file network to help fight this crime. If this happens to you, report it to the police quickly to minimize any harm done to you financially and document in detail everything that is involved in the theft. Then contact your creditors, local banks, utility companies, telephone company or anyone that it may impact.

To lower your risk of becoming a victim, use these precautions:

1. Do not carry your Social Security card.
2. Shred or burn important papers.
3. Review your credit reports annually .
4. Don’t download files from unknown web sites or click on emails from people you don’t know.
5. Use strong passwords, and don’t transact business on a public wireless network.
6. If anyone requests personal information always ask them why they need it, and how it will be used.

Some homeowner insurance policies have an endorsement to cover identity theft. Coverage limits begin around $25,000 and typically have no deductible. The insurance coverage helps to restore any damages done and may include the following:

• Services of a firm to assist you in addressing the effects of identity theft, even if you only have reason to think that your identity has already been stolen.
• Wages you lose as a result of reasonable time off work you take to address the effects of identity theft. 
• Your defense against suits brought against you.
• Challenge to information in your credit report.

Insurance may even cover overhead for sending letters, phone calls, notaries and any reasonable expenses you incur addressing the effects of identity theft. Ask your agent about this coverage that is as low as $30 per year.