Identity theft insurance is a homeowners insurance endorsement that reimburses you for costs tied to restoring your identity after fraud. It covers expenses like lost wages, legal fees, phone bills, notary costs and credit monitoring services. Most policies reimburse $15,000 to $50,000 in recovery expenses but don't cover stolen money or direct financial losses.
Identity Theft Insurance Coverage: What is It & Where to Get It
Updated: March 22, 2026
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Key Takeaways
Identity theft insurance is a homeowners endorsement that reimburses recovery costs like legal fees, lost wages and credit monitoring, but excludes stolen funds.
Most endorsements reimburse $15,000 to $50,000 in expenses and include access to a fraud resolution specialist.
Homesite, COUNTRY Financial, Travelers, Auto-Owners, Nationwide, Universal North America, Farmers, American Family and Amica all offer identity theft endorsements.
What is Identity Theft Insurance?
How Does An Identity Theft Endorsement Work?
An identity theft endorsement activates after you report fraud to law enforcement and your insurer. Once approved, it reimburses out-of-pocket restoration costs: legal fees, lost wages, credit monitoring, notarization and mailing expenses for dispute letters.
Many endorsements also assign a dedicated fraud resolution agent who helps you place credit freezes, file bureau disputes and complete the paperwork to reclaim your accounts.
Is Identity Theft Insurance Worth It: Statistics & Why You Need Coverage
Identity theft remains one of the most reported types of fraud in the U.S., and losses continue to grow each year. These numbers from the Insurance Information Institute (III), the FTC and the FBI show the scope of the problem.
- The FTC's Consumer Sentinel Network received more than 6.47 million reports in 2024, with 18% of them related to identity theft.
- Credit card fraud accounted for 43.9% of identity thefts, followed by miscellaneous identity theft at 32.4%, which includes online shopping and payment account fraud, email and social media fraud.
- The FBI's Internet Crime Report recorded 859,532 cybercrime complaints in 2024, with total losses reaching $16.6 billion, up from $12.5 billion in 2023.
- Florida, Georgia and Nevada had the most identity theft reports per capita in 2024.
- The Identity Theft Resource Center reported 2024 had the second-highest number of data compromises ever tracked, with 1.35 trillion victim notices issued.
Why You Need Identity Theft Insurance
Recovering from identity theft takes time, money and effort that most people don't expect. An endorsement on your homeowners or renters policy picks up expenses that would otherwise come out of your own pocket.
Attorney and legal costs
If a thief opens accounts or commits crimes in your name, you may need legal help to clear your records. The endorsement reimburses attorney fees and court-related expenses.
Wages lost to the recovery process
Many victims spend weeks contacting banks, credit bureaus and government agencies. The endorsement compensates for time away from work during this period.
Fraud resolution support
Most endorsements include access to a case manager who handles credit bureau disputes, creditor communications and documentation on your behalf.
Administrative and document fees
Replacing a driver's license, ordering certified credit reports and mailing affidavits all cost money. The endorsement reimburses these out-of-pocket expenses so they don't pile up.
Which Home Insurance Companies Offer Identity Theft Coverage?
Whether you can add identity theft coverage depends on your insurer and where you live. The home insurers listed below write identity theft endorsements, but endorsement availability, coverage limits and pricing differ by state. Ask your agent or call your insurer directly to find out if this add-on is available with your policy.
Identity Theft Coverage: Bottom Line
Identity theft insurance is a low-cost endorsement that reimburses legal fees, lost wages and administrative costs tied to restoring your identity. It won't cover stolen money, but it offsets the recovery expenses that catch most fraud victims off guard.
This endorsement adds minimal cost to your homeowners or renters policy. Ask your agent about coverage limits, included services like fraud resolution support, and whether the endorsement is available in your state.
Insurance for Identity Theft: FAQ
We've answered common questions about identity theft insurance endorsements and what they pay for.
Does identity theft insurance cover stolen money?
No. Identity theft insurance reimburses recovery expenses like legal fees, lost wages and credit monitoring, not the stolen funds themselves. Contact your bank or credit card issuer to dispute fraudulent charges and recover stolen money.
What expenses does identity theft insurance reimburse?
Identity theft insurance reimburses out-of-pocket costs like attorney fees, lost wages, notary charges, certified mail, credit report fees and credit monitoring subscriptions. Some endorsements also cover the cost of replacing documents like your driver's license or passport.
Is identity theft insurance the same as credit monitoring?
Many scheduled personal property endorsements waive the deductible entirely, meaning you receive the full listed value. Check your policy or ask your agent, since deductible rules vary by insurer and state.
Identity Theft Home Insurance Endorsement: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Insurance Information Institute. "Facts + Statistics: Identity Theft and Cybercrime." Accessed March 25, 2026.