Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports. Identity theft insurance is meant to provide its victims some support in terms of finance and insurance to cope up with the damage they face due to this theft. Some companies now include it as a part of their home owner’s insurance policy. Others sell it as either a stand alone policy or as an endorsement to a homeowners or renters insurance policy.

On average, these policies cost between $25 and $50 for $15,000 to $25,000 worth of coverage. Identity theft insurance provides reimbursement for expenses such as phone bills, lost wages, notary and certified mailing costs and sometimes attorney fees with the prior consent of the insurer. The various aspects of identity theft protection are a mixed bag. Coverage for certified mailing and phone costs is appropriate and helpful. Coverage for attorney fees is less also.

Identity theft victims are not responsible for the debts incurred by their impostors, but they are stuck cleaning up the credit mess. Restoring your credit and your name is a slow, painstaking process. It means countless phone calls, letters and time away from work. The aim of identity fraud coverage is to help victims cope with the cleanup. Identity theft coverage includes lost wages as a result of time taken off from work to deal with fraud, with coverage of as much as $500 per week for four weeks; notary and certified mailing costs for completing and delivering fraud affidavits; fees for reapplying for loans that were declined due to erroneous credit information; phone charges for calling merchants, financial institutions and law enforcement agents to discuss the fraud; some attorney fees.

Regardless of what precautions you take or don't take, everyone is at risk when it comes to identity theft. In a world of internet banking and shopping fast becoming commonplace, thieves looking to steal one's identity now have a faster and quicker way of doing it. Criminals know that it is easier now than any time in the past to steal and assume another's identity because of computers and easier access to public information. What's even more frustrating for the victim is that although identity theft is fast becoming a problem, the laws to prosecute criminals are still evolving and the victim is often a victim twice: first with their identity stolen and secondly by not being able to fully find and/or prosecute the criminal. For these reasons there is no question that everyone must realize that the risk of identity theft does exists and one must take steps to protect it. Identity theft insurance is now available and although it will not prevent one from being a victim, it will help one recover from the many losses associated with being an identity theft victim.

If you look for why one should go for Identity theft insurance - indeed, $25 a year seems quite a bargain when compared with the costs of other credit protection and monitoring products on the market. These products, which promise to keep a close eye on your credit report and alert you of any suspicious activity, can cost anywhere from $50 to $100 a year. Chances are, you've received an offer for one of these products wrapped around a credit card bill or in an evening phone call from a telemarketer. Holders of Citibank credit cards may enroll in Credit Notify SM, a credit bureau monitoring service that sends out a monthly report detailing credit activity. The cost is approx $9 per month, which adds up to $108 a year. Some privacy guard that deliver quarterly reports from a credit bureau, driving records, medical records and Social Security data charge price in range of $60 per year. If you go for any Credit Monitoring service from any renowned and reliable tag name that provides quarterly updates of your credit profile and lets you view your profile online is available for about 50$. But these all services are not one such that is such that a consumer cannot do for him or herself and also none of them care provide any statement about what will happen of customer if he/she somehow lies prey to Identity theft. Also, no product can replace the importance of playing it safe when it comes to giving out personal information. All require your personal information that you could just lend out to agencies in lieu of faith that they are in safe hands. Thus, Identity theft insurance is a must go to provide a backup to make you stand up at least on your legs when once you face disaster of Identity theft. Apart from Identity theft insurance; fraud alert is recommended to let you put a check on ongoing fraud attempts against you.

Besides peace of mind for a relatively small cost, identity theft insurance helps a victim recover by providing reimbursement for expenses such as repairing their credit report, recovering lost wages, phone bills, mailing costs, and attorney fees depending on the policy chosen.