by B. L. Babb

Created on: November 27, 2008   Last Updated: December 05, 2008

"From January - December 2007, the FTC received over 800,000 consumer fraud and identity theft complaints. Losses were reported to be in excess of $1.2 billion. Credit card fraud was the most reported at 23%." (Source - FTC

Protect yourself! Homeowner's may be protected by their homeowner's insurance policy for certain types of fraud and identity theft expenses. These may be offered as an endorsement to your policy or it may be possible to increase your coverage for an extra fee. This fee is well worth the annual cost if you ever become a victim.

Companies will provide you with a document detailing your coverage limits and obligations in the event of a fraud occurrence. An insurer may cover damages resulting from unauthorized use of a credit card or ATM card (issued in the policyholder's name), loss from check forgery/alteration as well as loss if the insured receives counterfeit U.S. or Canadian currency (verify with your insurer) in good faith.

Expenses may include fees, certified mail costs, lost wages, removal of lawsuits both civil and criminal from creditors and collection agencies as well as a multitude of other expenses. It cannot be stressed enough for you to read your Endorsement and understand it.

There may be limits, ensure you know them. Some insurers may require their prior approval before you can start a process. Ensure you are fully aware of your obligations to notify your insurance company prior to undertaking an expense.

Insurers may also have specific guidance as to what they consider fraud. Giving your card to someone who then misuses it may not be covered as well as if a resident of your home steals your credit card and uses it without your consent.

You must comply with the terms and conditions of your stolen device (credit card, ATM card, etc) to be covered. Follow your terms and conditions to maintain your coverage.

The fraud deductible limit may vary from a damage claim against your policy for physical damages.

Know your duties to your insurer in the event of fraud. It is best to keep all receipts pertaining to the fraud until after you have received reimbursement. Provide receipts while keeping a copy for your records.

The best way to be insured against identity theft is to prevent it. To prevent it, there are several simple steps you can take to reduce your risk.

When shopping, keep your credit card secure until actual payment is made then promptly return it when finished minimizing exposure. Pay particular attention if someone appears to be

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