Identity Theft Protection: A guide to what & when to shred

By Alyssa Black

Identity fraud is one of those coverage’s no one thinks they are going to need.  I can’t tell you how many insured’s have had me remove this coverage from their policy, including myself!  At the time, I had a tenants policy and opted not to carry “identity fraud protection” which would have increased my premium about $22 for the year.  Wouldn’t you know, I ended up being a victim of identity fraud.  It started when I never received my tax return back.  I called the IRS and they told me the funds had been claimed and deposited into an account.  Long story short, the person had obtained my social security #, plus my account info and had the funds deposited into their own account.  I  had four credit cards opened in my name (that I did not open).  I had to do a lot of leg work and I was able to get my credit fixed and my money back from the IRS, but it took about a year.  I still don’t know exactly how this person got my information, but I think it was from applying for a credit card online.  Needless to say, I have purchased a shredder and I am a lot more careful about online purchases.

There are people with much worse identity fraud stories than mine and in some cases lose everything.  If I had carried Identity Fraud protection on my policy I would have had up to $15,000 in coverage for the following:

1. the costs for notarizing affidavits or similar documents for law enforcement agencies, financial institutions or similar credit grantors, and credit agencies;
2. the costs for sending certified mail to law enforcement agencies, financial institutions or similar credit grantors, and credit agencies;
3. the loan application fees for re-applying for loans due to the rejection of the original application because the lender received incorrect credit information;
4. the telephone expenses for calls to businesses, law enforcement agencies, financial institutions or similar credit grantors, and credit agencies;
5. earnings lost by an “Insured” as a result of time off from work to complete fraud affidavits, meet with law enforcement agencies, credit agencies, merchants, or legal counsel, up to $250 a day, to a total of $7,500;
6. the reasonable attorney fees incurred with prior notice to us for:

a. the defense of an “Insured” against any suit(s) by businesses or their collection agencies;
b. the removal of any criminal or civil judgments wrongly entered against an “Insured”; and
c. any challenge to the information in an “Insured’s” consumer credit report.

So I always recommend my insured’s carry this coverage on their policy. For more information, Insure Info Blog has posted a new item, ‘Identity Theft Protection: A guide to what & when to shred’

You may view the latest post at
http://www.insureinfoblog.com/2015/06/identity-theft-protection-a-guide-to-what-when-to-shred/