Q10. What is identity theft expense coverage and how much does it cost?

A10. Identity Theft Expense Coverage is designed to reimburse an insured person for expenses caused by the theft of an insured's identity. It only provides coverage for the expenses incurred due to identity theft such as:

• Notarizing fees for documents required by financial institutions or similar credit grantors or agencies pertaining to the fraud.
• Costs for certified mail to law enforcement agencies, credit agencies, etc.
• Loss for time taken off work to complete fraud affidavits, meet with law enforcement agencies, credit agencies, and/or legal counsel.
• Loan application fees for re-applying for loans when the original application is rejected solely because the lender received incorrect credit information related to fraud.
• Reasonable attorney fees to defend lawsuits, remove criminal or civil judgments or challenge the accuracy of a consumer credit report.
• Charges incurred for long distance telephone calls to merchants, law enforcement agencies, or financial institutions.

It does not provide coverage for:

• Loss arising out of or in connection with a business.
• Expenses incurred due to any fraudulent dishonest or criminal act by an insured.
• Loss other than expenses.
• Loss caused when an occupant of the residence premises or a blood relative of the insured has committed the Identity Theft.
• Loss caused when a residence employee has committed the Identity Theft.

This coverage is to help with the expenses an insured may face when attempting to combat an Identity Theft situation and is added to a homeowners policy. The cost varies by company but the average cost is around $25 annually. Not all companies offer this coverage. For further information, contact your agent.

How can I protect myself from Identity Theft?

The Federal Trade Commission found that complaints of Identity Theft and Fraud increased 87% from 2001 to 2002 and are still on the rise. The US Secret Service estimates that consumers nationwide lose $745 million dollars each year to identity theft and fraud. The average victim spends 607 hours clearing their credit record after having his/her identity stolen. Here are some simple things you can do to help protect yourself:

Check your credit record often, at least once a year. Look over it carefully. Verify that you have knowledge of any new credit applications noted. Look over the open accounts, are they accounts that you use?

If your credit card bill is not delivered as usual you should carefully watch that account and contact your account holder. Someone may have stolen the bill and is using the information to make fraudulent purchases.

Shred out-dated financial records before discarding.

Shred or rip offers of credit that come in the mail before discarding.

Keep your social security card in a safe place such as a safe deposit box, do not carry it with you.

Avoid mailing anything that contains personal or financial information from an unlocked mailbox. Instead, use a drop box or post office box.

Avoid listing your driver license number or social security number on personal checks.

If available, add Identity Theft Expense coverage to your homeowner policy.