Although identity theft insurance won't deter identity thieves, it can, in certain circumstances, minimize losses if an identity theft occurs. As with any product or service, as you consider whether to buy, be sure you understand what you'd be getting.
Things to consider include:
- The amount of coverage the policy provides.
- Whether it covers any lost wages (and, if so, whether there's a cap on the wages you can claim, or a separate deductible).
- The amount of the deductible.
- What might be excluded (for example, if the thief is a family member or if the thief made electronic withdrawals and transfers).
- Whether the policy provides a personal counselor to help you resolve the problems of identity theft.
- Whether your existing homeowner's policy already contains some coverage.