Have you ever heard someone say their credit has been compromised, or they were a victim of fraud? Those instances were examples of ID theft. There are many ways to steal someone’s identity, including bank account fraud and stealing someone’s social security number. With so many data breaches leaving personal information at risk, it’s important to consider having insurance that can cover expenses associated with this.
Your ID is Not Safe
Identity theft is now an everyday occurrence. This year alone, there have been reports of huge data breaches. Here are a few:
- Houzz – Not even people wanting to decorate their homes are safe. In February, Houzz experienced a data breach that compromised names, usernames, passwords, and other personal information that could identify users.
- Rush University Medical Center – Healthcare identity theft is increasing at alarming rates. 45,000 patients’ information was compromised, including social security numbers, birthdays, names, addresses, and health insurance information. What’s even scarier is the information came from an employee.
- Atlanta Hawks – The NBA’s Atlanta Hawks eCommerce website was hacked, grabbing the names, payment card details and dates of birth of users. The hackers were able to use a credit card skimming code, compromising this information.
- Instagram – In May, over 49 million Instagram influencers, celebrities, and brands were compromised. The bio, profile photo, location, email address and phone number of high profile accounts were exposed.
Personally Identifiable Information (PII) is continuously threatened, with a heightened sense of urgency to protect information.
What Can You Do to Prevent ID Theft
You can prevent ID theft in several ways. There are programs that allow you to freeze your social security number from being used. Additionally, it’s best to keep your social security number a secret unless it is absolutely necessary to release that information. Using strong passwords and keeping your passwords private also works well. Finally, shred your mail and check credit reports on a consistent basis.
What is ID Theft Insurance?
Theft ID insurance covers costs that may occur when someone’s identity has been compromised. For instance, if a person’s identity is stolen, and they incur expenses to repair their credit, the policy will cover some of those costs. These expenses may include legal fees, credit monitoring, and other tactics needed to resolve the issue.
One of the most important things to remember – the theft has to take place before the insurance kicks in. This type of policy may be included in a homeowners’ or renters insurance policy or standalone. Working with an agent to determine what the policy covers is important, as different policies cover different things.
Is There a Deductible Involved?
Although relatively inexpensive, in most cases there is a deductible involved, and there are benefit limits. Generally, policies of this nature only cover up to about $15,000. If your expenses exceed this amount, you would be responsible for the additional costs.
Nothing can replace or compensate the time and effort involved when dealing with identity theft, but an ID theft insurance policy can help lessen the financial burden on the person that has to restore what was lost. For more information on protecting your identity and obtaining an ID theft insurance policy, contact an agent at Carrigan Insurance today!