Wednesday, May 12, 2010

Banks sell identity protection; so do homeowners insurance companies, with caveats

Consumers can often purchase identity theft protection, both from banks and from property (homeowners) insurance companies.


Wells Fargo, for example, has a link that explains how it covers up to $10000 for out-of-pocket losses, here.

And “Insurance agents” considers identity protection as almost a “mandatory” add-on for most people, as explained here.

Typically, this coverage is sold as an endorsement that will cover “resolution services” and lost wages and legal fees. But the coverage may not protect someone if the loss occurred because of online activity connected with a home-based business.  I presume that this is available for renters, too.

The whole picture of identity protection may be evolving quickly, as insurance companies are starting to become more concerned about the risks people are creating for themselves online.

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