Many major insurance companies (All State, Liberty Mutual, State Farm, and others) often offer identity theft as an add-on feature to homeowners and renters insurance policies. However, is investing in this add-on worth the money?
The cost of identity theft insurance is relatively cheap, landing between $25 and $50 per year. And although it doesn’t alert you if your identity is stolen, it’ll instead reimburse you up to $25,000 (usually) for losses and damages. However, this isn’t necessarily worthwhile because bank and credit card companies will often do the same. The Justice Department also reported 88 percent of people suffered no out-of-pocket losses in 2014.
If you decide to move forward with purchasing theft insurance, it’s best to understand what it entails.
Image via http://www.keepmyid.org/.