Help your Homeowners clients stay protected in the event of identity theft

According to the Federal Trade Commission (FTC), identity theft is the fastest growing crime in the U.S. The crime is growing so rapidly that almost everyone in the U.S. has experienced some sort of identity theft or knows someone who has. It is also one of the fastest changing crimes because criminals continue to develop new ways to steal a person’s identity.

Based on 490,220 total complaints to the FTC’s Consumer Sentinel Network in 2015, the types of personal identity theft fraud were:

• Government documents or benefits fraud – 49.2 percent
• Credit card fraud – 15.8 percent
• Phone or utilities fraud – 9.9 percent
• Bank fraud (checking, savings, EFTs, etc.) – 5.9 percent
• Attempted identity theft – 3.7 percent
• Loan fraud – 3.5 percent
• Employment-related fraud – 3.3 percent
• Other identity theft – 19.2 percent

Percentages total to more than 100 because some victims reported more than one type of personal identity theft fraud.

Motorists Insurance Group can help with our Identity Fraud Expense Coverage endorsement. It can help eliminate the expenses and time required to report theft and restore your client’s good name if they become a victim of identity theft. The endorsement provides $15,000 limits for any one identity fraud incident discovered during the policy period, subject to a $250 deductible (limits and deductible may vary by company). The endorsement covers six types of expenses:

1. Costs for notarizing affidavits or related documents that verify the fraud. Financial institutions, creditors and related agencies may require these documents to resolve the credit issue.
2. Costs for certified mail to law enforcement agencies, credit bureaus, financial institutions or creditors.
3. Lost income due to the insured’s time off work to complete fraud affidavits and to meet with law enforcement agencies, credit agencies and legal counsel. The endorsement covers up to $200 per day, with a maximum limit of $5,000.
4. Loan application fees for reapplying for loans when the original application is rejected solely because the lender received inaccurate credit information. These fees can range from $100 to more than $1,000.
5. Reasonable attorney fees (which can range from $100 to $350 per hour) incurred as a result of identity theft, including expenses from the following:
   1. Defending lawsuits brought against an insured by merchants, financial institutions or their collection agencies.
   2. Removing criminal or civil judgments wrongly entered against an insured.
   3. Challenging the accuracy or completeness of the consumer’s credit report.
6. Long distance telephone charges to creditors or merchants, law enforcement agencies, banks or credit bureaus to report or discuss the incident. Resolving the theft could involve dozens of hours of long distance charges spanning several months or longer.

In addition, your Homeowners clients have the added benefit of expert assistance to help them if they become a victim of identity theft.

Coverage may not be available on all Homeowners coverage forms. Contact your district sales manager or underwriter with questions.

This article does not imply coverage.