The loss exposure from identity theft is increasing, along with ever-evolving methods that identity thieves utilize. Where identities were previously stolen one by one, criminals are increasingly stealing
massive amounts of them in a single blow. The Federal Trade Commission (FTC) processed 1.4 million fraud reports in 2018, totaling nearly $1.5 billion in losses. In their report, the FTC stated that the most common categories for fraud complaints were identity theft and imposter scams, with credit card fraud as the most widespread identity theft cases. Fraudulent tax returns to claim a refund are also prevalent.Most unendorsed homeowners policies do not cover identity theft, creating a significant coverage gap. At McCurdy Group, we are very concerned about this loss exposure. That’s why we encourage our clients to consider identity theft insurance options. This coverage can be purchased as a stand-alone policy or as an add-on to a homeowners policy. These policies are not meant to pay for the fraudulent charges or accounts themselves; they are meant to provide reimbursement of expenses associated with
the process of recovering from fraud.
Here are a few examples of covered expenses:Fees for reapplication and the reissuing of various identification documents such as passports, Social Security cards, and driver’s licenses.Loan application fees for reapplying if the initial application was denied due to the identity fraud.Reasonable ... read full post